Copra Market

American Buying Reduced Heavy Catch of Whale Oil Expected

HTHE following paragraphs from Messrs. Faure & Go’s monthly report on the oil and fat markets, published in London on September 14, have a direct bearing upon the copra market: We closed our previous Review with the remarks that the outlook remains un certain and markets are likely to fluc tuate in accordance with crop reports.

As a result of the various crop reports received during the past four weeks, we have come to the conclusion that we can no longer expect the United States to import large quantities of vegetable oils, and consequently the outlook, though still verv uncertain nolitically. seems to be for lower levels. The hoped for trade recovery in the late summer or in the autumn is no longer expected with the same confidence.

The principal development since our last Review has been the American Cot ton Bureau Report, which estimates the yield of cotton at half a million bales more than a month ago, with a cor responding increase in the production of cotton seed oil.

The American imports of oilseeds, in cluding copra and palm kernels, during the first half of this vear, show a reduc tion of about 50,000 tons, compared with the first half of 1936, after excluding th« linseed imports. The total imports of all oils and fats, however, at 494,000 short tons, show an increase of 65,000 tons over the first half of 1936.

It looks as if the serious shortage in lard, which had been anticipated for the latter part of this year and earlv next year, will not be so severe after all.

This year’s large corn crop will result in heavy breeding of hogs during the autumn.

The whale oil situation is causing some concern. The agreement entered into earlier this year between the various countries has not vet been ratified. We understand that Japan, who was not a nartv to the whaling agreement, is send ing out four expeditions to the Antarctic this season. Germany will aUo enter the field with two new floating factories.

Against this, it is reported that British and Norwegian Companies will be using six floating factories, with a total capacity of 500,000 barrels, for tank chartering instead of for whaling. The unsold portion of the last whale oil catch is still reported to be fairly con siderable.

That ends the Faure report, which deaU mostly with facts and statistics.

Against its implications, it mav be pointed out that the world, month by month, is increasing its consumption of all commodities. So long as there is no general disturbance, such as a world war, this should continue, and help to main tain copra prices at or near their present level.