Middle East Crisis Brought Buoyancy

World Copra Outlook

To Market

Based on material supplied by the P-NG Copra Marketing Board • The rise in the price of copra on the North European market to iStg.7l/6/8 at the end of July, from Zstg.67/19'6 at the beginning oj the month, was attributed to the Middle East crisis. Average price for the month was £Stg.7OJ2J6.

A CONTRIBUTING factor has been typhoon damage in the Philippines, on top of a long drought.

The general opinion seems to be that, unless the political situation deteriorates, the price of copra will settle down around the £Stg.69 level for a while. When forming this opinion, the price recently paid for new season’s whale oil was taken into consideration.

Between 80,000 and 90,000 tons of whale oil was recently purchased by Unilever for £Stg,67/10/- per ton — as against a price of £Stg.7B last year.

Margarine Requirements

The outlook for 1958 suggests that there should be adequate supplies of oils and oil-seeds for margarine manufacture in the United King dom, although there will probably be a tendency to follow America and use more “soft” oils (cotton-seed, soya bean, etc.), instead of the oils —such as coconut and palm oil — that have been traditional in the UK.

World production of margarine has changed little in recent years, as the table showing the per capita consumption, and that of butter shows:

The Government of India recently restricted imports of copra and coco nut oil in order to foster the home oil industry. This has affected Ceylon’s copra and coconut oil in dustry. About 14 per cent, of Ceylon’s production went to India.

The Situation in P-NG

Territory production during the month was normal; in certain areas rainfall has been adequate, but ex tremely dry conditions are being experienced in other areas, mainly the South Coast of Papua. . Receivals by the Copra Market ing Board (including copra to CPL oil crusher in Rabaul) for the six

months period January/June, 1958, totalled 46,510 tons.

The incidence of smoke grade copra (after inspection) is still high, intake figures being:—Hot air, 47 per cent.; FMS, 36 per cent.; smoke, 27 per cent.

During the six months period, 3.3 per cent, of copra submitted has been rejected for various reasons (although no doubt a considerable quantity was later received in a lower grade), and 11 per cent, down graded.

Tentative Price Revision Soon From time to time queries have been received by the Board regard ing the assessment of a purchase price. The present tentative main ports purchase price (hot air £47.

FMS £46, and smoke £45/7/6) was assessed on an assumption that the UK Continent c.i.f. price would average around £6l Sterling during 1958. (Tentative price increased Aug. 5. See p. 17.) However, including August ship ments, the average has been £6B/2/sterling, c.i.f., and on that basis, an approximate tentative/final FMS price could be assessed as follows:

The matter of a variation in the present tentative main ports pur chase price will be coming under consideration shortly, but any variation will depend largely on the extent to which it will be necessary to finance future operations.

1957 Butter Margarine lb lb United Kingdom .. 17.2 15.2 Australia 27.5 8 3 New Zealand 44.5 Canada 20.3 7.8 Norway 7.9 47 'g Netherlands 8.6 43.5 Sweden 17.4 35.3 Denmark 22.0 44.1 West Germany 15.9 28 0

Usa 8.5 8.6

Average Philippines FM £68 o 0 Stg.

Premiums FMS 1 5 0 ,, Less charges including Discounts. Freight, Handling, etc., F.O.B. to c.I.f 69 7 o ,, 16 17 6 £52 10 0 „ Equivalent in Australian Currency £65 12 6 Aust.

Export Duty (on assessed F.O.B. value, above) . . 5 16 0 Aust. £59 16 6 ,, Board Handling Expenses (including Stevedoring, Government Wharfage, etc.) . . £2 10 0 Shrinkage 16 6 3 16 6 ..

Approximate Final Price Payment FMS at present average London c.I.f £56 0 0 Aust.