Record In November

It's Money in the Bank for Planters

London Copra Prices Reach Record In November

Pacific planters who were depressed to see the UK Min istry of Food copra contract finish at the end of 1957, could not have anticipated the fantastic prices—higher than during the post-war boom—reached at the end of 1958. In spite of modest returns obtained at the beginning of the year for their product, it seems certain now that they will finish this year much better off than in 1957.

rHE average London c.i.f. price for Philippines copra (on which is based final price in such places s Papua and New Guinea) was Stg.9o/7/6—a gain of £Stg.ll/17/6 ver the previous month. Highest rice for the month was reached n November 17, when copra was Stg.9s/6/6, c.i.f., London. (During le period when Pacific copra price r as limited by the MOF contract, hilippines copra on the “free” ondon market was never more lan £Stg.Bo per ton c.i.f.) In the last week in November, )pra being delivered to the krpenter mill in Suva, by Fiji lanters, was bringing £FBO for >p grade. This is the first and nal price, so far as these purchases re concerned, of course.

At the same time, Papua-New uinea planters were still being paid t the rate of £AS3 for top grade— hich means that they certainly are ©ring up treasure in heaven and hen the final pay-out, based on le average c.i.f. London price of 3tg.90/7/6, comes there will be sub antial increases in planters’ bank dances. (£Stg.9o is equal to about Ml 2; but deductions of about £AIS ill have to be made for freight and

her charges.)

The Territory as a whole will mefit also, in increased collections - export duty. This will boost fall g Administration revenu e— though it is unlikely to stay the reasury hand if it has already sen decided to introduce income xation in 1959. The official view is ore likely to be that “the planters ■n afford it.”

Shipping Mishaps Helped

The spectacular rise in copra 'ices over the month was caused r the continuing low supplies from iilippines and Indonesia, plus two ipping mishaps. In his monthly fcular to planters, Mr. lan cDonald, chairman of the P-NG >pra Marketing Board reported: “Quantities of copra available for ffopean consumers, already around to 20 per cent, below that of 3t year, were further weakened inng November, as a result of

additional purchases being made by Philippine desiccators, and thus the market reacted spectacularly to two misadventures with copra ships out of Manila.

“One, carrying 8 000 tons of rnnra ran aground on Bancoran'Reef/n^ar o^her*’ caran h*? to discharge part of her cargo before being refloated;

and another collided with a sub merged wreck necessitating a re turn to dry dock in Manila.

“Dealers and consumers, with near contracts to meet, thus had to move quickly, and on short supplies the market naturally reacted with a sudden upward price.”

Future Outlook

Although it is not expected that the supply position will improve much before April 1959, the high price of copra and coconut oil in evitably must send consumers look ing for cheaper alternatives.

While copra and coconut oil (up to £Stg.l34 per ton c.i.f. London for the latter) soared during No vember, other oils kept at steadier levels.

Peak price for soyabean oil was £Stg.34 per ton; ground-nut oil, £Stg.63; whale oil, £Stg.76, and tallow £Stg.B3 per ton.

Nonetheless, taking all facts into consideration, it seems reasonable to expect that good prices for copra will be maintained for at least the first half of 1959. (Over)

An agreement between Unilevers and the BSI Copra Board has been reached for the disposal of 12,000 tons of copra to Unilevers in 1959.

Total production within the Pro tectorate is .estimated to be in the vicinity of 20,000 tons for 1959.

Levers Pacific Plantations Pty. Ltd., with approval of both Copra Board and Australian authorities, will ship 5,000 tons to Australia, leaving a balance for disposal on the open market mainly to Japanese in terests.

The Copra Board has also an nounced that a new contract has been concluded with the Bank Line whereby the freight rate ex Solomon Islands ports to United Kingdom and Western European ports has been reduced by 110/- Sterling to 160 - Sterling per ton.

The new rate will operate from January 1, 1959, for one year, and will then again be reviewed.