Copra

Quick Effects of The Pacific War

OWING to the outbreak of war in the Pacific, the Pacific copra market is in a confused condition.

Usually, United States takes most of the Philippines’ enormous copra produc tion, and now that that territory is vir tually in Japanese hands, it may be assumed that its copra is going to Japan USA, deprived of copra, can use many substitutes, such as cottonseed oil It seems certain, however, that there will be a new demand, from USA, for South Pacific copra—especially in connection with munitions (explosives) manufacture This probably will be met from Dutch East Indies, where an enormous quantity has been stored since the European market closed in 1940.

There is a growing demand, from Canadian and Mexican, as well as USA sources, for copra—a demand that can not be easily met because of the present restrictions on the movements of Pacific ships.

Australia, for a number of reasons, is increasingly calling for copra, and it is stated that Australia probably can now consume all the New Guinea production.

Generally, the copra price shows a rising tendency—but the restrictions in shipping imposed by the war are pre venting producers getting the full benefit of the movement.

The plan for a South Pacific Copra Pool is in abeyance, for the moment>— all those interested are awaiting the clarification of the war position in the Pacific. Fiji and New Zealand and allied territories were practically committed to the plan, when the Pacific war broke out.

The New Guinea Copra Pool, operated by the Australian Government, is func tioning without apparent difficulty. Most of the copra coming into the Pool in New Guinea is being shipped to Aus tralia, where there is a keen market for it, and it is being sold at prices which should give growers a good margin over the £4/10/- guaranteed. We cannot ob tain details of sales, however.

Prices In Suva

From Our Own Correspondent

Suva, Dec. 23.

NEGOTIATIONS with the Australian and British Governments, for the formation of a Copra Pool, drag on, In the meantime, the trade buying prices in Suva are £6/10/- for plantation grade and £5/10/- for sun-dried. Supplies are short, partly because of hurricane damage, but more because the plantations are in bad order, and because labourers are at tracted to military construction work.

Merchants, from month to month, are granted permits to export—but few ships are moving.