He Butter Factor In Copra Price
p. 21 · Read in the full issue
The large surplus stocks of butter held in Europe and ■ticularly in the United Kingdom has posed problems for the rgarine manufacturer—and thus for the copra producer.
a result of this oversupply, >utter prices have fallen from ibout 3/6 Stg. per pound in ai in 1956, to an average of 2/3 Stg. in May 1958. (The government announced late that it intended to assist the ilian and New Zealand butter cers by putting a “brake” on aental imports; but the effect is is not expected to be felt y because of high UK stocks. fall in the average price of has brought this commodity in price to the higher grades ile margarine (in UK ranging 2/2 to 2/6 per pound)—and 1 turn affects copra producers, r nilever subsidiary manufac- 75 per cent, of all UK margaing the first half of May, of copra climbed steadily, ng a peak of £Stg.7o/18/- c.i.f. it seems clear that this would have been exceeded if ners had not curtailed the copra by 20-30 per cent. ards the end of the month eased (getting as low as 7/2/3 c.i.f., London) as unmed rumours that Indonesia
was resuming shipments began to circulate. This in turn made Philip pine sellers nervous and willing to accept lower prices.
All indications are that the price v/ill continue to fall probably back as far as end of 1957 levels — as the Indonesian situation eases and larger Philippines supplies— held back because of drought—be come available from July, Average London c.i.f. price for May was £Stg.6B/17/6. p p rn H„ rpr c roqo 999 r Producers bet IZbZ.ZZZ For Papua-New Guinea pro ducers the high-light of the month of May was the distribution of £252,222 of undrawn profits arising from trading in the years 1954, 1955 and 1957. (See PIM, May, p. 163).
Copra Marketing Board trading for the first period of 1958 is re garded as very satisfactory but no distribution of profits is being made as capital is required to finance the Board’s current purchases. Thus the Tentative Price, fixed in Janu ary, remains unchanged, (p. 163), —Based on bulletin issued by P-NG Copra Marketing Board, on June 2.