Copra Outlook

Period of Plentiful Supplies Approaching

RECENT reviews of the world’s oil and fat markets, by Messrs, H. M. F.

Faure and Co. (whose forecasts usually are very accurate) indicate that there is little likelihood of any drop in prices for the time being; and that, in 1937 and 1938, there will be a period of more plen tiful supplies.

The passing of the Bailey Bill in the American Senate in June placed proces sing taxes upon whale oil and tallow, thus shutting out those commodities in favour of lard (home-grown) and palm-oil and copra (imported). The effect of this was to give a small fillip to copra prices; but also it certainly will encourage a larger production in America of lard and cotton seed oil. Meanwhile, whale oil and tallow, shut out of U.S.A., are seeking a market elsewhere, which might have a tendency to depress the copra price. Whale oil production seems to have fallen, however, and there definitely is a move to restrict the catch during the coming season.

There has been a falling-off in the quan tity of soya bean oil reaching the Euro pean market.

Copra being now at a price which re turns a small profit to the grower, one notes everywhere an increasing produc tion, which, possibly may mean over production again. As against that, the consumptive capacity of the world will grow, so long as the economic improve ment continues. Generally, the outlook is not discouraging.

Mrs. H. Luxmore, the well-known and popular manageress of the Rabaul Hotel, recently left Rabaul for Buka (Northern Solomons) to spend several weeks’ holi day. She has been suffering from very indifferent health for some time.