Higher Copra Prices Forecast

THE price for Philippine FM copra could rise to around £7O sterling a ton within the next two or three months, according to the chair man of the P-NG Copra Marketing Board, Mr. lan McDonald.

In a report issued on June 21, Mr. McDonald said: “To date, this month’s Philippine FM copra prices have moved very slightly, ranging between £65/5/- sterling and £66/3/6, but slightly better than the average during May.

“On June 10 the price quotation was SUSIB4±, thus converting on a weakened sterling market which, of course, favours the P-NG copra producer, to £66/3/6 sterling. This is probably close to where the June price will average out, perhaps £66 sterling. The averages this year have been: January, £7B/ 12/T sterling; February £76/2/6 sterling; March, £7O sterling; April, £69/12/6 sterling; May, £65/2/6 sterling.

“At around £65-£66 sterling, which is roughly 10 per cent, below the average for the first three months of 1966, there seems little doubt that demand during the next few months will continue to be strong, if only for the reason that the price relationship of copra and coconut oil is so favourable compared with other edible oils and fats, even tallow.

“Combining this factor with the almost certain decline that will take place in Philippine copra production from July onwards as a result of the drought conditions which prevailed during the latter half of 1965 through to March this year, plus damage caused by the typhoon which swept through the main coconut areas recently, the effect on prices later this year should be fairly marked.

“It may therefore be not unreasonable to expect copra to go to around £7O sterling per ton within the next two or three months.

“Of course, there might be other setbacks, mainly in respect of production trends, and such factors as afloat offers (particularly of Indo nesian origin) which so upset the market. But the long-term view for this year does seem fairly bright.”