Indonesian Troubles Cause

But It Could Drop Again Later

Indonesian Troubles Cause Rise In World Copra Prices

By PIM’s Copra Commentator

Copra interests appear to have been surprised by a ris of about £2 per ton in the world copra price, between mic March and mid-April.

THEY should not have been.

Indonesia produces from 25 to 33 per cent, of the world’s copra; and it was apparent, from the time that Indonesia seized the Dutch-owned inter-islands trans port, and thus shut off a large portion of Indonesian copra from its markets, that there could be a scramble for supplies.

After that shipping dislocation there came further dislocations caused by rebellions in Sumatra and the eastern groups of the Indies. The world is inclined to consume more and more copra, in the regular way; so any reduction of Indonesian supplies naturally set the prices rising.

Fiji growers immediately got better prices from the Carpenter crushing mill in Suva. Papua and New Guinea producers (and most producers in other Territories who market through Government controlled Boards) continued to receive the rates fixed in January, but with a promise of increased supplementary payments when the copra pools are squared up and final payments adjusted. Rates and prices are quoted elsewhere.

Copra Being Lost

A good deal of the Indonesian copra which has been shut out of the markets is being lost, and further quantities de-graded. But large quantities are stored and, at the first opportunity, they will be thrown on the market. This could have a depressing influence.

But it seems certain that Indo nesia’s copra supplies will be dislocated while the present politico-economic troubles there continue. The Djakarta Government now is rapidly over-running the areas which went into rebellion in February and March; and State owned shipping supplied by the Communist countries is now being introduced to the archipelagoes, to provide new transport.

It may be assumed that, as political order and shipping activities are resumed, Indonesian copra supplies will return to the markets, and the markets will react accordingly.

Australian destroyers Queen borough and Quickmatch made an official visit to Noumea in April and received a warm welcome.