Heavy Drop In Copra Prices

Mr. lan McDonald, chairman of the P-NG Copra Marketing Board, supplied the following report on the copra market on March 23: There has been quite a heavy drop in copra prices over the last week or so, and although Philippine FM copra has not yet been quoted over the last few days, because of the delay which occurs in obtaining price fixtures through the London Copra Association, it is known that Indonesia was down to £6B and this is a pretty good indication of the present level of Philippine FM.

Much of the reason for the fall in copra prices stems from recent reports on US soyabean planting intentions, and as a result in Europe the markets for all food fats and oils have become even more nervous than in the US.

In addition, the news has hit the market of a confirmed sale of a considerable quantity of USSR sunflower oil to a large consumer in Europe. This information, together with advice of unsold afloat lots of copra, has resulted in a pronounced decline for practically all oils with the exception of cottonseed oil.

The current low price level for copra does not appear to be justified, for the reason that the Philippines growing areas have been going through a pronounced dry spell since the middle of last year, and therefore it is likely that a price recovery in copra will develop shortly.