Copra Around

£Abo

London Analysis Of Market

From a Special Correspondent

London. Feb. 13.

I HAVE not written much lately about the copra market, as conditions are so confused it is difficult to write anything of much interest.

The prices of all commodities are high and it is difficult to give you comparative values. Although there was a large pro duction in the Philippines in 1947, prices steadily advanced during the latter part of the year until, at one time, it was about 340 dollars (£AIO6) FOB for Copra in bulk. , „ The last fortnight has seen a fall, and to-day we could probably find sellers at 260 dollars (£ABI/5/-.) The reason for the advance towards the end of the year was that some of the dealers have over-sold, and some of the local dealers defaulting on contracts, caused buyers to buy prompt delivery, owing to steamers waiting to load the contracts previously made.

While this squeeze for near copra was on, the Philippines were suffering from serious earthquakes and typhoons, which made the position even more complicated, and instead of some of the buyers holding off, they even tried to buy during these difficult times, because they did not want to have dead freight.

With the shortage of dollars here, some of the buyers have refrained from buy ing as much as possible, and we think they are very pleased to see this set-back.

Owing to some of the European buyers having difficulty in getting Philippines copra at a reasonable price, a certain amount of business has been done in Dutch East Indies copra, which was smuggled into Malaya, and up to £B5/£9O (sterling) FOB was paid for Straits copra in bags. The Malayan authorities also allowed local oil millers to export an equivalent quantity of oil, as they sold to the Ministry of Food, and from the end of November to the beginning of January, 10,000/12,000 tons of coconut oil was sold to’ various European markets at prices ranging from £l2O to £135 sterling (Aus tralian, £l5O-£168.) The Dutch East Indies appear to be more peaceful, and we are hoping that supplies will increase during this year, but so far the exports for the recent months have not come up to expectations.

Copra continues to be a very popular oilseed among all consuming countries m Europe, and there has been a good de mand for same, and the demand has been far from satisfied.

I would like to see prices recede to a more normal level of trading. This pre sent level is dangerous, as markets are subject to very sharp fluctuations: and with the general unsettled political posi tion one does not like to have too many contracts open, especially for forward de livery, at this level of prices.

As you know, conditions are very dif ficult. The fault may sometimes be in bad administration; but after the World War which we went through, with the huge devastation and general loss of goods and property, it would be unwise not to expect some trouble of some sort.

While it is still difficult to see very clearly, I still have hopes that we shall gradually get out of our difficulties.

Miss E. E. Edwards who has been con nected with the SDA Mission since 1904 returned to the Fulton Mission at Tai levu, Fiji at the end of January. She had been visiting Australia.