Only Minor Effect

Stockpiled Oil Release Has Only Minor Effect

From Judy Tudor LONDON April 2; The release of American stockpiled coconut oil seems to he having only a minor effect on the copra market • although due to peculiar circumstances, it is difficult to make a com parison between the price offered for stockpiled oil and those quoted for current production on the world market. .

The release of the first 6,000 tons (it is to he disposed of in parcels of about 6,000 tons each six weeks for 18 months ) was in January.

This was disposed of to four US manufacturers at from 171 cents to 184 cents per pound. , „ , , The second 6,000 tons was put up for tender in February, but such bids as there were evidently did not reach the reserve price and none of the 6,000 tons was disposd of.

Tenders were again called for 6,000 tons at end of March. This time only 2,600 tons were disposed of to Proctor and Gamble, at 16.71 cents per lb (equal to approx. £Stg. 133/10/- per ton ) ex-tank, Kansas.

Current price for Straits crude coconut oil is approximately £Stg. 124 per ton, cif UK/North European port. It is difficult, however, to make a comparison with the price paid for the stockpiled oil. It is obvious that only consumers who find the Kansas delivery point convenient bid for this lot. The cost of getting the oil into the tank in Kansas is an unknown factor.

Trading in copra and coconut oil in London was quiet in early April. Price for Philippines copra had eased back to about £Stg.B2 per ton but none of the copra experts were suggesting that it had anything to do with the reluctance of US manufacturers to take up all the stockpiled oil that was offering. Tenders for another 6,000 tons of stockpiled oil will close on May 10.