SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                 FORM 10-Q

                QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934


                  FOR THE QUARTER ENDED DECEMBER 31, 1996


                       COMMISSION FILE NUMBER 1-9875


                             [GRAPHIC OMITTED]

                      STANDARD COMMERCIAL CORPORATION


Incorporated under the laws of                            I.R.S. Employer
     North Carolina                              Identification No. 13-1337610


              2201 MILLER ROAD, WILSON, NORTH CAROLINA 27893

                      Telephone Number (919) 291-5507






Former name, former address and former fiscal year, if changed since last report
- Not applicable


On February 10, 1997 the registrant had outstanding  9,438,446  shares of Common
Stock ($.20 par value).


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) had been subject to such filing requirements for
the past 90 days.



                                          YES   X           NO
                                             -------          -------

<PAGE>

STANDARD COMMERCIAL CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands, except share information; unaudited)
<TABLE>
<CAPTION>
                                                               December 31     March 31
                                                         1996         1995         1996
                                                         ----         ----         ----
<S>                                                  <C>         <C>          <C>    

ASSETS
Cash............................................     $ 55,849     $ 63,305     $ 78,688
Receivables .....................................     234,205      242,537      252,117
Inventories .....................................     331,594      334,191      259,781
Prepaid expenses ................................       8,037        4,298        3,690
Marketable securities ...........................         971        1,280        5,325
                                                    -----------------------------------
   Current assets ...............................     630,656      645,611      599,601

Property, plant and equipment ...................     130,797      139,268      134,498
Investment in affiliates ........................      11,920       13,360       11,442
Other assets ....................................      35,136       30,924       37,283
                                                    -----------------------------------

   Total assets .................................   $ 808,509    $ 829,163    $ 782,824
                                                    ===================================

LIABILITIES
Short-term borrowings ...........................   $ 402,598    $ 404,461    $ 373,625
Current portion of long-term debt ...............       8,418       10,699       11,665
Accounts payable ................................     125,554      156,282      133,737
Taxes accrued ...................................      27,284       21,271       24,776
                                                    -----------------------------------

   Current liabilities ..........................     563,854      592,713      543,803

Long-term debt ..................................      27,042       35,221       31,818
Convertible subordinated debentures .............      69,000       69,000       69,000
Retirement and other benefits ...................      19,432       18,652       18,498
Deferred taxes ..................................       8,917       12,082        9,632
Commitments and contingencies ...................        --           --           --
                                                     ----------------------------------

   Total liabilities ............................     688,245      727,668      672,751
                                                     ----------------------------------

MINORITY INTERESTS ..............................      29,706       25,248       27,473
                                                     ----------------------------------

ESOP redeemable preferred stock .................       8,748        8,748        8,748
Unearned ESOP compensation ......................      (6,320)      (6,165)      (6,320)
                                                     ----------------------------------

SHAREHOLDERS' EQUITY
Preferred stock, $1.65 par value; authorized
1,000,000 shares
  Issued 87,477 to ESOP; (Dec 95 - 91,319;
March 96 - 87,477)
Common stock, $0.20 par value; authorized
shares 20,000,000
  Issued 11,989,564; (Dec 95 - 11,506,294; ......       2,398        2,301        2,325
March 96 - 11,624,275)
Additional paid-in capital ......................      47,786       42,577       43,660
Unearned restricted stock plan compensation .....        (365)        (464)        (435)
Treasury stock at cost 2,566,129 shares
  (Dec 1995 - 2,466,001; March 1996 - 2,490,661)       (3,340)      (2,147)      (2,384)
Retained earnings ...............................      51,900       38,405       46,450
Cumulative translation adjustments ..............     (10,249)      (7,008)      (9,444)
                                                     ----------------------------------

   Total shareholders' equity ...................      88,130       73,664       80,172
                                                     ----------------------------------

   Total liabilities and equity .................   $ 808,509    $ 829,163    $ 782,824
                                                    ===================================
</TABLE>

The accompanying notes are an integral part of these financial statements.


<PAGE>


STANDARD COMMERCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(In thousands, except share information; unaudited)
<TABLE>
<CAPTION>

                                                 Third quarter ended   Nine months ended
                                                         December 31         December 31
                                                      1996      1995     1996      1995
                                                      ----      ----     ----      ----
<S>                                               <C>       <C>       <C>       <C>   
Sales.............................................$284,360  $271,745  $669,252  $642,018
tobacco
     - nontobacco ................................  89,770   105,810   264,274   314,698
                                                  --------------------------------------

   Total sales ................................... 374,130   377,555   933,526   956,716

Cost of sales .................................... 346,186   351,244   861,724    901,170
Selling, general and administrative expenses......  18,288    18,701    54,556     55,850
Restructuring charges ............................      --    12,500        --     12,500
Other income (expense) - net .....................  (1,059)   (1,362)     (332)    (1,422)
                                                  ---------------------------------------

   Income (loss) before taxes ....................   8,597    (6,252)   16,914    (14,226)
Income taxes .....................................   3,940     1,676     5,996      2,522
                                                  ---------------------------------------

   Income (loss) after taxes .....................   4,657    (7,928)   10,918    (16,748)
Minority interests ...............................    (476)   (1,112)   (2,680)    (2,263)
Equity in earnings of affiliates .................     299        --       661        541
                                                  ---------------------------------------

   Income(loss)from continuing operations........    4,480    (9,040)    8,899    (18,470)
Income from discontinued operations ..............      --    10,799        --     10,050
                                                  ---------------------------------------
   Net income (loss) .............................   4,480     1,759     8,899     (8,420)
ESOP preferred stock dividends net of tax ........    (116)     (117)     (347)      (358)
                                                  ---------------------------------------

   Net income(loss)applicable to common stock.....   4,364     1,642     8,552     (8,778)

Retained earnings at beginning of period .........  48,787    37,828    46,450     50,530
Dividends declared ...............................  (1,251)   (1,065)   (3,102)    (3,347)
                                                   --------------------------------------

   Retained earnings at end of period ............$ 51,900  $ 38,405  $ 51,90    $ 38,405
                                                   ======================================

Earnings (loss) per common share           
Primary - from continuing operations...............  $0.47    $(1.02)   $0.92      $(2.12)
        - from discontinued operations ............     --      1.20       --        1.13
        - net .....................................  $0.47     $0.18    $0.92      $(0.99)
                                                   --------------------------------------
        - average shares outstanding............9,360,095 8,973,623 9,263,916  8,888,292

   Fully diluted - net                               $0.43        *         *          *

         - average shares outstanding...........11,930,731

</TABLE>

*Not applicable because fully diluted calculations include adjustments which are
antidilutive.  

The accompanying notes are an integral part of these financial statements.


<PAGE>


STANDARD COMMERCIAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands; unaudited)
<TABLE>
<CAPTION>

                                                               Nine months ended
                                                                     December 31
                                                                 1996       1995
<S>                                                           <C>      <C>    

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)...........................................   $8,899  $  (8,420)
Depreciation and amortization...............................   14,366     19,391
Minority interests..........................................    2,680      2,263
Undistributed earnings of affiliates........................     (514)      (540)
Gain on disposition of property, plant and equipment........     (199)    (1,145)
Income from discontinued operations.........................        -    (10,050)
Other.......................................................    1,360       (692)
                                                            --------------------
                                                               26,592        807
Net changes in working capital
   Receivables..............................................   15,085     (7,170)
   Inventories..............................................  (73,539)    12,753
   Current payables.........................................   (5,547)    (1,060)
                                                            --------------------

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES............  (37,409)     5,330
                                                           ---------------------

CASH FLOWS FROM INVESTING ACTIVITIES

Property, plant and                                            (9,441)    (9,349)
equipment...............................- additions
                     - dispositions.........................      504      2,883
Minority interests..........................................        -     (7,740)
Business dispositions.......................................    2,993        279
                                                            --------------------

CASH USED FOR INVESTING ACTIVITIES..........................   (5,944)   (13,927)
                                                            --------------------

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

Proceeds from long-term borrowings..........................   10,011      9,658
Repayment of long-term borrowings...........................  (18,123)   (12,226)
Net change in short-term borrowings.........................   28,973     20,133
Dividends paid..............................................     (347)      (362)
Other.......................................................        -     (1,515)
                                                            --------------------

CASH PROVIDED BY FINANCING ACTIVITIES.......................   20,514     15,688
                                                           ---------------------

Increase (decrease) in cash for period......................  (22,839)     7,091
Cash at beginning of period.................................   78,688     56,214
                                                            --------------------

CASH AT END OF PERIOD.......................................  $55,849    $63,305
                                                            ====================
</TABLE>



The accompanying notes are an integral part of these financial statements.


<PAGE>

STANDARD COMMERCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     The interim statements  presented herein should be read in conjunction with
the  financial  statements  and notes thereto  included in the Company's  latest
Annual Report on Form 10-K. o The interim period financial  statements have been
prepared by the Company without audit and contain all of the  adjustments  which
are, in the opinion of management, necessary for a fair statement of the results
of operations.  All such adjustments are of a normal,  recurring nature. Results
for interim periods are not necessarily indicative of business trends or results
to be expected for other interim periods or the full year.

     Inventories were as follows:

                                        December 31 March 31
              (In thousands)          1996     1995     1996
                                      ----     ----     ----
              Tobacco*            $255,382 $230,734 $160,721
              Nontobacco            76,212  103,457   99,060
                                   -------  -------  -------

              Total               $331,594 $334,191 $259,781
                                   =======  =======  =======

       *Includes uncommitted
        inventories as follows:  $ 25,824  $ 38,704 $ 31,489

     During the fiscal  year ended  March 31,  1996,  the  Company  initiated  a
reorganization  plan for its nontobacco  businesses and determined that a pretax
restructuring charge of $12.5 million ($11.0 million after tax) was appropriate.
The costs include $3.6 million for the impairment of goodwill,  $2.1 million for
the closure of a processing plant in Argentina,  $2.8 million for the settlement
of export  incentive  programs and $2.5 million for expenses of reorganizing and
consolidating  the wool  division  management  structure and various other costs
incurred in the aborted  sale of the wool  division.  With the  exception of the
export  incentive  issue  which  is  expected  to be  resolved  in  1998,  it is
anticipated that  substantially  all other accrued but unpaid amounts related to
the  reorganization  ($0.6 million at December 31, 1996) will be expended by the
end of fiscal 1997.

     There were no material  changes in  accounting  policies  during the period
ended December 31, 1996.

MANAGEMENT'S DISCUSSION
AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION

Results of Operations

     Sales of $374.1  million for the December 31, 1996 quarter  decreased  0.9%
from the year-earlier quarter. Sales for the nine months ended December 31, 1996
of $933.5  were 2.4% lower than the same  period  last year.  Net income for the
current quarter totaled $4.5 million,  an increase of $2.7 million,  compared to
$1.8 million a year earlier.  Net income for the 1996 nine months period totaled
$8.9  million,  an  improvement  of $17.3  million,  compared  to a loss of $8.4
million for the same period in 1995.

     For the nine months ended  December 31, 1996,  tobacco sales totaled $669.3
million, up 4.2% from the same period a year earlier.  Tobacco volumes were down
by 6.3% as the prior year included sales of past-year inventories while the 1996
sales were mainly current crop tobacco. A better sales mix, combined with higher
prices due to improving industry  conditions and lower interest expense,  led to
substantially improvedoperating margins. Volume increases in Turkey and the U.S.
partially offset small declines in other areas.  Administrative expenses were up
3.1%  primarily  because of the  increased  sales and expansion of operations in
Africa.  Minority  interest was higher due to increased volumes in our 51%-owned
oriental tobacco  business.  For the nine month,  tobacco income from continuing
operations  of $9.6 million was $6.0 million  better than the same period in the
prior year.

     Despite stable wool volumes, nontobacco sales for the 1996 nine months were
down 16.0% as continued  soft wool market  conditions  resulted in lower prices.
Volumes were up in  Argentina,  South Africa and the United  Kingdom.  Operating
margins  recovered versus the prior year as the worldwide surplus of wool

<PAGE>

STANDARD COMMERCIAL CORPORATION
MANAGEMENT'SDISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (continued)

is gradually  being reduced and market  conditions  continue to  stabilize.  The
Company's  initiatives  in fiscal  1996 to improve  operating  efficiencies  and
reduce  overhead  contributed  to a  significant  reduction  in  the  loss  from
continuing  nontobacco  operations to $675,000 in 1996 from $22.0 million in the
same prior-year  period.  The building supply business  produced a modest profit
for the period.

     Overall,  the Company  posted  pretax  income of $16.9 million for the 1996
nine  months  compared  to a loss of $14.2  million in the same  period in 1995.
Interest  included in cost of sales and other expenses  totaled $31.3 million in
the  current  nine  months  compared  with $35.2  million in the same prior year
period primarily reflecting lower inventory financing costs.

     Prior-year  income tax provisions  were required for certain  jurisdictions
where profits were earned despite overall pretax losses.  Tax charges or credits
vary as a percentage  of pretax income or loss due to  differences  in tax rates
and relief available in areas where profits are earned or losses incurred.

     As  disclosed  in prior  reports,  the Company  made a  provision  of $12.5
million  ($11.0  after  tax) in fiscal  1996 for  restructuring  its  nontobacco
operations.  Major components of the  restructuring  include closure of the wool
processing facility in Argentina, write-off of goodwill,  reorganization of wool
division management and other miscellaneous expenses related to the aborted sale
of the wool business.  Thus far in Argentina,  the factory has been closed,  181
employees  have been  terminated and certain  impaired  assets have been written
down.  Additionally,  the factory  building has been leased to a third party. In
Australia, operations have been consolidated under one management team to better
and more efficiently serve this market.  The wool tops departments in the German
and French companies have been reorganized to streamline  marketing  efforts.  A
feasibility study is underway to improve operational  efficiencies in the French
topmaking  factory.  For the current nine months, the restructuring has resulted
in lower  depreciation and amortization  expenses of approximately  $624,000 and
lower personnel costs of approximately $169,000.

     Income from  discontinued  operations  in 1995  reflect  the  reversal of a
provision  for the loss on disposal of the wool  business.  The planned  sale of
this business was terminated in December 1995.

     Because of the seasonal  nature of the  Company's  businesses,  results for
interim  periods  are not  necessarily  indicative  of results of other  interim
periods or the full year.

     Working  capital at  December  31,  1996 was $66.8  million,  up from $52.9
million at December 31, 1995 as contributions from operating activities resulted
in reduced  borrowings.  Compared to March 31, 1996, working capital improved by
$11.0  million due to reductions  in the current  portion of long-term  debt and
seasonal  business  factors.  Capital  expenditures of $9.4 million for the 1996
nine months  related  mostly to expansion of warehouse  facilities in Greece and
routine expenditures in the US tobacco division

     The Company  continued to closely monitor its  inventories  which were down
$2.6  million year to year,  primarily  because of reduced  uncommitted  tobacco
inventories  and  lower  wool  prices  which  offset  higher  committed  tobacco
inventories attributable to increased business activity and higher prices.

     The Company's  credit  facilities  for tobacco  include $100 million for US
operations and $200 million for European  operations  expiring in June 1998, and
local lines of approximately $245 million.  There are separate credit facilities
for  the  wool  business  totaling  $145  million.   Management  believes  these
facilities to be adequate for its projected level of business in fiscal 1997.
  
     As a part of its  ongoing  efforts  to  deleverage  its  balance  sheet and
strengthen its financial position, the Company is continuing to consider various
alternatives,   including  offerings  of  additional  equity  and/or  debt,  and
renegotiating  or replacing  its credit  facilities.  There can be no assurance,
however, that the Company will be able to complete any such transactions.

<PAGE>


                        PART II - OTHER INFORMATION

Item 1.   LEGAL  PROCEEDINGS - As indicated in the  Company's  March 31, 1996
          Annual Report on Form 10-K,  the charges  initially  brought in Canada
          against two of the Company's  employees  were dismissed in the fall of
          1995 and,  while that  investigation  is  continuing  as to  unrelated
          parties,  no further  proceedings against the Company or its employees
          are anticipated. With regard to the U.S. portion of the investigation,
          the  Company  was  informed  in the  fall  of 1996  that it was  being
          terminated without any proceedings  against the Company or its current
          employees.

Item 2.  CHANGES IN SECURITIES  -  Not applicable

Item 3.  DEFAULTS UPON SENIOR SECURITIES  -  Not applicable

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - Not applicable

Item 5.  OTHER INFORMATION - Not applicable

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

      a. Exhibit 11 Computation of Earnings per Common Share.

      b. Exhibit 27 Financial Data Schedule

      c. The  Company  did not file any  reports  on Form 8-K  during  the
         quarter.

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

Dated:  February 14, 1997              STANDARD COMMERCIAL CORPORATION
                                                (Registrant)


                                    By    /s/   Robert E Harrison
                                      ---------------------------------------
                                       Robert E Harrison
                                       President, Chief Executive Officer and
                                          Chief Financial Officer


                                    By    /s/   Guy M Ross
                                      ---------------------------------------
                                       Guy M Ross
                                       Vice President and Chief Accounting
                                          Officer