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 JUNE 30, 1997


                          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 August 1, 1997 the registrant  had  outstanding  12,683,155  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 data)
<TABLE>
<CAPTION>
                                                          June 30   March  31
                                                          -------   ---------
                                                       1997     1996     1997
                                                       ----     ----     ----
ASSETS                                                       (unaudited)
                            
<S>                                               <C>       <C>      <C>     
Cash............................................. $  40,037 $132,188 $ 41,117
Receivables......................................   240,694  206,344  266,560
Inventories......................................   334,550  286,453  256,519
Prepaid expenses.................................     8,286    5,521    6,285
Marketable securities............................       798    1,311      837
                                                  ----------------------------

      Current assets.............................   624,365  631,817  571,318

Property, plant and equipment....................   118,956  133,055  122,013
Investment in affiliates.........................    12,252   11,657   12,533
Other assets.....................................    28,763   37,849   29,821

      Total assets...............................  $784,336 $814,378 $735,685
                                                  ============================

LIABILITIES
Short-term borrowings............................  $144,306 $348,894 $272,325
Current portion of long-term debt................     7,831   10,453    8,985
Accounts payable.................................   208,681  188,160  141,145
Taxes accrued....................................    24,637   28,528   28,758
                                                  ----------------------------

      Current liabilities........................   385,455  576,035  451,213

Long-term debt...................................   134,559   29,022   70,252
Convertible subordinated debentures..............    69,000   69,000   69,000
Retirement and other benefits....................    19,048   18,651   19,127
Deferred taxes...................................     6,672    8,714    5,819
                                                  ----------------------------

      Total liabilities..........................   614,734  701,422  615,411
                                                  ----------------------------

MINORITY INTERESTS                                   30,110   29,342   30,312
                                                  ----------------------------

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

SHAREHOLDERS' EQUITY
Preferred stock, $1.65 par value; authorized
shares 1,000,000
      Issued none (1996 - 87,477 to ESOP)
Common stock, $0.20 par value; authorized shares      3,060    2,349    2,425
100,000,000
      Issued 15,300,862 (June 96 - 11,745,872;
Mar 97 - 12,126,270).............................
Additional paid-in capital.......................   100,102   44,722   50,324
Unearned restricted stock plan compensation......      (297)    (408)    (321)
Treasury shares, 2,617,707 (June 96 - 2,515,567;     (4,250)  (2,633)  (3,799)
Mar 97 - 2,591,790)..............................
Retained earnings................................    57,869   47,051   58,089
Cumulative translation adjustments...............   (16,992)  (9,895) (16,756)
                                                  ----------------------------

      Total shareholders' equity.................   139,492   81,186   89,962
                                                  ----------------------------

      Total liabilities and equity...............  $784,336 $814,378 $735,685
                                                  ============================
</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 per share data; unaudited)
<TABLE>
<CAPTION>

                                                          Three months ended
                                                                     June 30
                                                      -----------------------
                                                             1997       1996

<S>                                                      <C>        <C>     
Sales   - tobacco.....................................   $212,847   $215,263
        - nontobacco..................................     87,468     95,128
                                                      -----------------------

        Total sales...................................    300,315    310,391

Cost of sales
        -  Materials, services and supplies...........    273,189    280,894
        -  Interest...................................      7,266      7,611
                                                      -----------------------

        Gross profit..................................     19,860     21,886
Selling, general and administrative expenses..........     17,659     17,996
Other interest expense................................      2,216      2,387
Other income (expense) - net..........................      2,391      2,835
                                                      -----------------------

        Income before taxes...........................      2,376      4,338
Income taxes..........................................       (358)    (1,112)
                                                      -----------------------

        Income after taxes............................      2,018      3,226
Minority interests....................................       (291)    (1,936)
Equity in earnings of affiliates......................        126        218
                                                      -----------------------

        Net income....................................      1,853      1,508
ESOP preferred stock dividends net of tax.............          -       (115)
                                                      -----------------------

        Net income applicable to common stock.........      1,853      1,393

Retained earnings at beginning of period..............     58,089     46,450
Common stock dividends................................     (2,073)      (792)
                                                      -----------------------

Retained earnings at end of period                        $57,869    $47,051
                                                      =======================

Earnings per common share
                                                            $0.17      $0.15
Primary.......................................- net
              - average shares outstanding............     11,103      9,493

        Fully diluted.................................          *          *
</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>
                                                          Three months ended
                                                      ----------------------
                                                                     June 30
                                                             1997       1996
                                                             ----       ----
CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                        <C>        <C>   
Net income............................................     $1,853     $1,508
  Depreciation and amortization.......................      4,951      4,395
  Minority interests..................................        291      1,936
  Deferred income taxes...............................        969          -
  Undistributed  earnings  of  affiliates  net  of            
    dividends received................................       (126)      (218)
  Gain  on  disposition  of  property,  plant  and    
    equipment.........................................     (1,177)      (185)
  Other...............................................     (1,075)     2,421
                                                      -----------------------
                                                            5,686      9,857
Net changes in working capital other than cash
  Receivables.........................................     21,043     43,114
  Inventories.........................................   .(80,641)   (27,498)
  Current payables....................................     71,082     58,967
                                                      -----------------------

CASH PROVIDED BY OPERATING ACTIVITIES.................     17,170     84,440
                                                      -----------------------

CASH FLOWS FROM INVESTING ACTIVITIES..................

Property, plant and equipment - additions.............     (2,909)    (2,265)
                              - dispositions..........      1,516        247
Business (acquisitions) dispositions..................          -          -
                                                      -----------------------

Cash used for investing activities....................    (1,393)    (2,018)
                                                      -----------------------

CASH FLOWS FROM FINANCING ACTIVITIES

Net change in short-term borrowings...................   (60,061)    (24,731)
Proceeds from long-term borrowings....................          -          -
Repayment of long-term borrowings.....................     (4,639)    (4,076)
Net proceeds of equity offering.......................     47,043          -
Dividends paid, net of tax............................          -       (115)
Other.................................................        800          -
                                                      -----------------------

CASH USED FOR FINANCING ACTIVITIES....................    (16,857)   (28,922)
                                                      -----------------------

Increase (decrease) in cash for period................     (1,080)    53,500
Cash at beginning of period...........................     41,117     78,688
                                                      -----------------------

CASH AT END OF PERIOD.................................   $ 40,037   $132,188
                                                      =======================
</TABLE>

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

<PAGE>

STANDARD COMMERCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

oThe interim statements  presented herein should be read in conjunction with the
 audited financial statements and notes thereto included in the Company's latest
 Annual Report on Form 10-K.

oThe  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 nature 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.

oSubsequent to June 30, 1997,  the Company  completed a $115.0  million  private
 placement of of 8-7/8%  Senior  Notes due 2005,  the net proceeds of which were
 used to repay  indebtedness  under existing bank credit  facilities and certain
 other long-term debt. As of June 30, 1997, these amounts have been reclassified
 in the balance sheet.

oPrior period earnings per share and weighted  average shares  outstanding  have
 been  restated to give effect to the increase in shares  outstanding  resulting
 from subsequent stock dividends.

oInventories for the periods shown were as follows:

                                       June 30      March 31
            (In thousands)      1997        1996        1997
                                ----        ----        ----
            Tobacco         $255,991    $206,675    $181,349
            Nontobacco        78,559      79,778      75,170
                            --------    --------    --------

              Total         $334,550    $286,453    $256,519
                             =======     =======     =======

oThere were no material  changes in accounting  policies during the period ended
 June 30, 1997.

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

Results of  Operations  Sales for the  quarter  ended June 30,  1997 were $300.3
million, a decrease of 3.2% from a year earlier. Sales of $212.8 million for the
tobacco division were down 1.1% from the corresponding  period in 1996.  Tobacco
sales from the U.S.  and South  America  increased  while sales from Turkey were
down due to the timing of shipments in the June 1996 quarter.  Overall,  tobacco
volume  was down  5.6% and  average  prices  were  higher  as a result of market
conditions  and the change in mix.  Nontobacco  sales of $87.5 million were down
8.1%  primarily  as the  result of a 10.9%  decrease  in the volume of wool sold
which was attributable to focusing on the more profitable processing elements of
the business.

Gross  profit  for the  quarter  of $19.9  million  was down  9.3% from the 1996
quarter due  primarily to the reduced level of sales and a change in the tobacco
business mix. Selling,  general and administrative expenses decreased by 1.9% to
$17.7  million as the  Company  continues  to focus on  operating  efficiencies.
Reductions  in personnel  related  costs and lower legal and  professional  fees
contributed to the favorable variance.  A decrease in other interest expense and
in the interest  income  element of other income (net) were both  attributed  to
improved application of cash to reduce borrowings.

The effect on net income of changes in sales mix and other factors  contributing
to a reduction in income  before taxes was offset by a lower  effective tax rate
and reduced earnings applicable to minority  interests.  The variation in income
tax charges or credits as a percentage  of pretax income due to  differences  in
tax rates and relief  available in areas where  profits are earned or losses are
incurred  resulted in an effective rate tax rate of 15.1% in the current quarter
compared to 25.6% a year earlier.

Earnings  attributed to minority  interests  were $1.6 million lower than a year
ago because of a change in business mix.  Equity in earnings of affiliates  were
down slightly from a year earlier.

<PAGE>

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


Net income was $1.9 million,  or $0.17 per share on 11.1 million  average shares
outstanding  versus  $1.5  million,  or $0.15  per share on 9.5  million  shares
outstanding for the June 1996 quarter  adjusted for subsequent  stock dividends.
The quarter-to-quarter increase in shares outstanding was primarily attributable
to the Company's 3.0 million share public offering during the June 1997 quarter.

Liquidity and Capital Resources

Working capital at June 30, 1997 was $123.9 million,  before reclassification of
the Senior Notes  proceeds  received  subsequent  to June 30,  compared to $55.8
million a year  earlier.  Most of the  increase  was due to  applying  the $47.0
million net  proceeds of a 3.0 million  share public  offering  completed in the
June 1997 quarter to reduce short-term  borrowings.  The remaining  increase was
due to contributions  from operating  activities that further reduced short-term
borrowings.  Working capital will be further  improved as a result of the Senior
Notes  offering  completed  after June 30, 1997.  Capital  expenditures  of $2.9
million  consisted  primarily  of routine  expenditures  in the tobacco and wool
divisions,  expansion  of  warehouse  facilities  in Greece and Turkey,  and new
machinery for the French topmaking  facility.  The Company  continues to closely
monitor its inventory  levels which fluctuate  depending on seasonal factors and
business conditions. Uncommitted tobacco inventory decreased to $20.4 million at
June 30, 1997 from $30.7 million a year earlier.

As a result of the  recent  equity  offering  which  appreciably  broadened  the
Company's  shareholder  base,  the Board of Directors  has voted to  discontinue
issuing quarterly stock dividends.  Certain debt agreements to which the Company
and its  subsidiaries  are  parties  contain  financial  covenants  which  could
restrict the payment of cash dividends. Under its most restrictive covenant, the
Company had  approximately  $57.9 million ($27.3 million under new covenants) of
retained  earnings  available for distribution as dividends at June 30, 1997. At
this  time,  it is  uncertain  when the Board will  resume  the  payment of cash
dividends.

Subsequent to June 30, 1997,  the Company  completed a $115.0  million Rule 144A
private placement of 8-7/8% Senior Notes due 2005. Concurrently,  commitments of
$200  million  were  obtained  for a  three-year  Global  Bank  Facility.  These
fundings,   in  combination   with  the  recent  equity  offering  have  largely
accomplished  the  Company's  current  refinancing  plans.  The Company used net
proceeds of the funding to repay  indebtedness  outstanding  under existing bank
credit facilities and certain other long-term debt. The Global Bank Facility, in
addition  to local  bank  lines of  approximately  $265.0  million  for  tobacco
operations  in  Africa,  Europe  and  Asia,  will  be used  to  finance  tobacco
operations.  Separate bank facilities of  approximately  $127.0 million exist to
finance wool  operations.  The Senior Notes have not been  registered  under the
Securities Act of 1933, as amended, or applicable state securities laws, and may
not be  offered  or  sold  absent  registration  under  the  Securities  Act and
applicable  state  securities laws or applicable  exemptions  from  registration
requirements.

Based  on the  outlook  for the  tobacco  and  wool  divisions,  and the  recent
refinancing activity, management anticipates that it will be able to service the
interest and principal on its  indebtedness,  maintain  adequate working capital
and provide for capital expenditures out of operating cash flow.

Forward-Looking Statements

Statements in this report that are not purely  statements of historical fact may
be  deemed  to  be   forward-looking.   Readers  are  cautioned  that  any  such
forward-looking  statements are based upon  management's  current  knowledge and
assumptions,  and actual  results  could be affected  in a material  way by many
factors,  including  ones over which the Company has little or no control,  e.g.
unforeseen changes in shipping schedules; the balance between supply and demand;
and  market,  economic,  political  and  weather  conditions.  More  information
regarding  certain of these  factors is  contained  in the  Company's  other SEC
filings,  copies of which are  available  upon  request  from the  Company.  The
Company assumes no obligation to update any of these forward-looking statements.

<PAGE>

                         PART II - OTHER INFORMATION


Item 1.     LEGAL PROCEEDINGS  -  Not applicable

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

          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: August 6, 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