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 SEPTEMBER 30, 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 November 1, 1996 the registrant had  outstanding  9,328,052  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
                                                      ---------       ---------
STANDARD COMMERCIAL CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands; unaudited)
<TABLE>
<CAPTION>
                                                                    September 30     March 31
                                                                 1996       1995         1996
                                                                 ----       ----         ----
ASSETS
<S>                                                           <C>       <C>         <C>
Cash.....................................................     $48,241   $ 60,219    $  78,688
Receivables..............................................     198,303    172,352      252,117
Inventories..............................................     346,020    396,016      259,781
Prepaid expenses.........................................       7,288      5,939        3,690
Marketable securities....................................       1,510      1,033        5,325
                                                          -------------------------------------

    Current assets.......................................     601,362    635,559      599,601

Property, plant and equipment............................     133,734    133,272      134,498
Investment in affiliates.................................      11,791     13,472       11,442
Other assets.............................................      34,887     49,013       37,283
                                                          -------------------------------------

    Total assets.........................................    $781,774   $831,316     $782,824
                                                          =====================================

LIABILITIES
Short-term borrowings....................................    $385,025   $424,207     $373,625
Current portion of long-term debt........................       8,469     10,395       11,665
Accounts payable.........................................     120,432    126,309      133,737
Taxes accrued............................................      26,217     27,178       24,776
                                                          -------------------------------------

    Current liabilities..................................     540,143    588,089      543,803

Long-term debt...........................................      28,923     33,368       31,818
Convertible subordinated debentures......................      69,000     69,000       69,000
Retirement and other benefits............................      19,173     17,973       18,498
Deferred taxes...........................................       8,808     11,482        9,632
Commitments and contingencies............................           -          -            -
                                                          -------------------------------------

    Total liabilities....................................     666,047    719,912      672,751
                                                          -------------------------------------

MINORITY INTERESTS.......................................      29,605     32,195       27,473
                                                          -------------------------------------

ESOP redeemable preferred stock..........................       8,748      9,132        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;  (Sept 95 - 91,319;  March 96 - 87,477)  Common stock,
$0.20 par value; authorized shares 20,000,000
  Issued 11,867,465; (Sept 95 - 11,389,072; March 96 -          2,373      2,278        2,325
11,624,275)..............................................
Additional paid-in capital...............................      46,157     41,209       43,660
Unearned restricted stock plan compensation..............        (385)      (460)        (435)
Treasury stock at cost 2,540,722 shares
  (Sept 1995 - 2,441,586; March 1996 - 2,490,661)........      (2,997)    (1,890)      (2,384)
Retained earnings........................................      48,787     37,828       46,450
Cumulative translations adjustments......................     (10,241)    (2,723)      (9,444)
                                                          -------------------------------------

    Total shareholders' equity...........................      83,694     76,242       80,172
                                                          -------------------------------------

    Total liabilities and equity.........................    $781,774   $831,316     $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>


                                                   Second quarter ended     Six months ended
                                                                                September 30
                                                           September 30
                                                        1996       1995      1996       1995
                                                        ----       ----      ----       ----

<S>                                                 <C>        <C>       <C>        <C>
Sales - tobacco...................................  $169,629   $186,528  $384,892   $370,273
      - nontobacco................................    79,376     95,668   174,504    208,887
                                                   --------------------------------------------

    Total sales...................................   249,005    282,196   559,396    579,160

Cost of sales.....................................   227,033    267,434   515,538    549,925
Selling, general and administrative expenses......    18,272     18,342    36,268     37,148
Other income (expense) - net......................       279        (22)      727        (60)
                                                   --------------------------------------------

    Income (loss) before taxes....................     3,979     (3,602)    8,317     (7,973)
Income taxes......................................      (944)       148    (2,056)      (846)
                                                   --------------------------------------------

    Income (loss) after taxes.....................     3,035     (3,454)    6,261     (8,819)
Minority interests................................      (268)         9    (2,204)    (1,151)
Equity in earnings of affiliates..................       144        270       362        540
                                                   --------------------------------------------

    Income (loss) from continuing operations......     2,911     (3,175)    4,419     (9,430)

Income (loss) from discontinued operations........         -      3,751         -       (749)
                                                   --------------------------------------------

    Net income (loss).............................     2,911        576     4,419    (10,179)
ESOP preferred stock dividends net of tax.........      (116)      (120)     (231)      (241)
                                                   --------------------------------------------

    Net income (loss) applicable to common stock..     2,795        456     4,188    (10,420)

Retained earnings at beginning of period..........    47,051     38,392    46,450     50,530
Dividends declared................................    (1,059)    (1,020)   (1,851)    (2,282)
                                                   --------------------------------------------

    Retained earnings at end of period............   $48,787    $37,828   $48,787    $37,828
                                                   ============================================

Earnings (loss) per common share
    Primary- from continuing operations...........      $0.30     $(0.37)    $0.45     $(1.09)
           - from discontinued operations.........         -        0.42        -       (0.09)
                                                   --------------------------------------------
           - net..................................      $0.30      $0.05     $0.45     $(1.18)

           - average shares outstanding........... 9,264,010  8,887,613 9,215,826  8,842,626

Fully diluted from continuing operations..........         *          *         *          *
</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>

                                                                                Six months ended
                                                                                    September 30
                                                                                    ------------
                                                                               1996         1995
                                                                               ----         ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                          <C>        <C>
Net income (loss).......................................................     $4,419     $(10,179)
Depreciation and amortization...........................................      9,130       11,700
Minority interests......................................................      2,204        1,151
Undistributed earnings of affiliates....................................       (362)        (540)
Gain on disposition of property, plant and equipment....................       (184)        (607)
Loss on disposal of discontinued operations.............................          -          749
Other...................................................................        913       (6,826)
                                                                        ---------------------------
                                                                             16,120       (4,552)
Net changes in working capital
    Receivables.........................................................     50,950       38,478
    Inventories.........................................................    (87,701)     (50,602)
    Current payables....................................................    (10,441)     (16,493)
                                                                        ---------------------------

CASH USED FOR OPERATING ACTIVITIES......................................    (31,072)     (33,169)
                                                                        ---------------------------

CASH FLOWS FROM INVESTING ACTIVITIES

Property, plant and                                                          (7,673)      (8,618)
equipment...........................................- additions
                          - dispositions................................        334        1,230
Business (acquisitions) dispositions....................................      2,993          279
                                                                        ---------------------------

CASH USED FOR INVESTING ACTIVITIES......................................     (4,346)      (7,109)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term borrowings......................................     10,012        9,687
Repayment of long-term borrowings.......................................    (16,210)     (10,461)
Net change in short-term borrowings.....................................     11,400       45,252
Dividends paid..........................................................       (231)        (241)
Other...................................................................          -           46
                                                                        ---------------------------

CASH PROVIDED BY FINANCING ACTIVITIES...................................      4,971       44,283
                                                                        ---------------------------

Increase in cash for period.............................................    (30,447)       4,005
Cash at beginning of period.............................................     78,688       56,214
                                                                        ---------------------------

CASH AT END OF PERIOD...................................................    $48,241      $60,219
                                                                        ===========================
</TABLE>

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

<PAGE>

STANDARD COMMERCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

o 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.  Because of the seasonality
of the Company's businesses, fluctuations in results for interim periods are not
necessarily  indicative of business  trends or results to be expected for a full
year.

o Financial  statements  for the prior year have been  restated to include  wool
operating results as continuing  operations because the planned sale of the wool
business was terminated in December 1995.

o Inventories for the periods shown were as follows:

                                             September 30    March 31
               (In thousands)              1996       1995       1996
                                           ----       ----       ----
               Tobacco                 $274,997   $288,517   $160,721
               Nontobacco                71,023    107,499     99,060
                                       --------    -------  ---------

                 Total                 $346,020   $396,016   $259,781
                                        =======    =======    =======

o During 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 September 30, 1996) will be expended by the
end of fiscal 1997.

o There were no changes in accounting policies during the period ended September
30, 1996.

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

Results of Operations

     Sales of $249.0 million for the September  1996 quarter  decreased by 11.8%
from the prior-year quarter. Sales for the six months to date of $559.4 are 3.4%
lower than the same period last year. Despite the reduction in sales, net income
was substantially  higher versus the same periods last year (up $2.3 million and
$14.6 million,  respectively).  Results for 1995 have been restated to treat the
wool business as a continuing operation.

     First  half  tobacco  sales  totaled  $384.9  million,  up 3.9% from a year
earlier.  Tobacco  volumes were down by 2.9% as the prior year included sales of
past year inventories while the 1996 sales are mainly current crop tobacco.  The
improved  sales mix,  combined  with  higher  prices due to  improving  industry
conditions and lower interest expense,  led to substantially  improved operating
margins. Volume increases in Turkey and the U.S. partially offset small declines
in other areas.  Administrative  expenses were up slightly  primarily because of
expanding  operations in Africa.  Minority  interest was higher due to increased
volumes in our 51%-owned  oriental tobacco  business.  First half tobacco income
from  continuing  operations  of $5.2 million was $6.1  million  better than the
prior year which showed a loss of $909,000.

     Despite a 4.2% increase in wool volumes,  nontobacco sales for the 1996 six
months were down 16.5% as continued soft wool market  conditions and a change in
mix  resulted  in lower  prices.  Volumes  were up in  Argentina  and the United
Kingdom. Operating margins recovered as the worldwide surplus of wool

<PAGE>


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

is  gradually  being  reduced  and  market  conditions  continue  to  stabilize.
Operating  efficiencies  and overhead  reductions  contributed  to a significant
reduction in the loss from continuing  nontobacco operations to $769,000 in 1996
from $8.5 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 $8.3 million compared to a loss
of $8.0 million in the 1995 first half.  Interest  included in cost of sales and
other  expenses  totaled $20.6  million in the current six months  compared with
$22.2 million in the prior year 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.

     Discontinued  operations  in the June 1995 quarter  included a provision of
$4.5 million towards the  anticipated  loss on sale of the wool business under a
fixed-price  agreement.  Due to  inclusion  of  wool  operating  losses  for the
September 1995 quarter in continuing  operations,  $3.8 million of the provision
recorded in the June quarter was reversed.

     As disclosed hereinbefore, the Company made an after-tax provision of $11.0
million  in fiscal  1996 for  restructuring  its  nontobacco  operations.  Major
components of the restructuring  include closure of our wool processing facility
in Argentina, write-off of goodwill,  reorganization of wool division management
and  other  miscellaneous  expenses  related  to the  aborted  sale of our  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 we have  consolidated  operations  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  under a single manager to streamline
marketing  efforts.  A  feasibility  study is  underway  to improve  operational
efficiencies in our French topmaking  factory.  For the current six months,  the
charges  referred to above have resulted in lower  depreciation and amortization
expenses of  approximately  $250,000 and lower personnel costs of  approximately
$125,000.

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

Financial Condition

     Working  capital at  September  30, 1996 was $61.2  million,  up from $47.5
million at September  30, 1995.  This was primarily  due to  contributions  from
operating  activities  resulting  in reduced  borrowings.  Compared to March 31,
1996,  working capital improved by $5.4 million due to reductions in the current
portion of long-term debt and seasonal business factors. Capital expenditures of
$7.7 million,  relate mostly to expansion of warehouse  facilities in Greece and
routine expenditures in the US tobacco division.

     The Company  continued  its  efforts to  deleverage  its  balance  sheet by
reducing  uncommitted  inventory  levels  and its  borrowings  to  finance  such
inventories.  Tobacco  inventories  have  declined  by  $13.5  million  and wool
inventories have declined by $36.5 million since September 1995.

     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.  These  facilities are believed by
management to be adequate for its projected level of business in fiscal 1997.



<PAGE>


                           PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS  -  Not applicable

Item    2. CHANGES IN  SECURITIES - Under  amended loan and guaranty  agreements
        entered into in July 1996 (Exhibits  4(ii) and 4(iii)  annexed  hereto),
        the  Company  must  maintain  (1) a leverage  ratio  (ratio of (a) total
        liabilities  minus  subordinated  indebtedness to (b) tangible net worth
        plus  subordinated  indebtedness)  of no more  than 4.25 to 1.00 and (2)
        tangible net worth of at least  $82,500,000  for the balance of 1996 and
        $85,000,000  thereafter.  These provisions could restrict the ability of
        the Company to pay cash dividends.

Item 3. DEFAULTS UPON SENIOR SECURITIES  -  Not applicable

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        a. An annual meeting of shareholders was held on August 13, 1996.

        b. Not required.

        c. 1.  Four  persons   nominated  by  management   were  elected  as
               directors,  without  opposition,  for terms  expiring  in 1999
               as follows:

               Nominee          Votes For   Votes Withheld      Broker Nonvotes
               Marvin W Coghill    8,138,860       13,202              -0-
               Thomas M Evins Jr   8,138,566       13,496              -0-
               Robert E Harrison   8,138,549       13,512              -0-
               William A Ziegler   8,132,915       19,147              -0-

           2.  The  appointment  of  Deloitte  &  Touche  LLP as  the  Company's
               independent  auditors  for fiscal 1997 was  approved by a vote of
               8,137,629 shares in favor,  6,125 shares against and 8,307 shares
               abstaining. There were no broker nonvotes.

        d. Not applicable.

Item 5. OTHER INFORMATION  -  Not applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

        a. The following exhibits are filed as a part of this report:

           4(i)   Amendment No 3, dated as of July 15, 1996,  amending  Loan and
                  Security   Agreement  dated  May  5,  1995  between   Standard
                  Commercial  Tobacco Co., Inc., a subsidiary of the Company and
                  NationsBank,  N.A.  (South),  formerly known as NationsBank of
                  Georgia,  N.A.,  filed as  Exhibit  4 (iii)  to the  Company's
                  report on Form 10-K for the year ended March 31, 1995.

           4(ii)  Second Amended and Restated Parent Guaranty Agreement dated as
                  of July 15, 1996  between the  Company and  NationsBank,  N.A.
                  (South),  formerly  known as  NationsBank  of  Georgia,  N.A.,
                  whereby the Company  guarantees the indebtedness under Exhibit
                  4 (i) above.

           4(iii) Second Supplemental  Agreement dated July 16, 1996 between the
                  Company and certain  subsidiaries and Deutsche Bank A.G. et al
                  which amends  Master  Facilities  Agreement  dated May 5, 1995
                  filed as Exhibit 4 (ii) to the  Company's  report on Form 10-K
                  for the year ended March 31, 1995.

           Upon  request  the  Company  will  file  with  the   Commission   any
           instruments  defining the rights of holders of long-term  debt of the
           Company and its  subsidiaries  representing a total  indebtedness  of
           less  than ten  percent  of the  total  assets  of the  Company  on a
           consolidated basis.

Item 6. EXHIBITS AND REPORTS ON FORM 8-K (continued)

           11  Computation of Earnings per Common Share.

           27  Financial Data Schedule.

        b. 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: November 5, 1996                      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