28 THECUBAREVIEW. 



SUGAR REVIEW. 



Specially written for The CUBA REVIEW by Willett & Gray, of New York. 



Our last sugar review for this Magazine was dated November 16th. Cuba Cen- 

 trifugals were then 3.94c. per lb. for 96 test duty paid here, and are now 3.86c. per 

 lb., showing decline of 8c. per 100 lbs. During this period the price has been no 

 higher nor lower than these quotations, the tone and tendency being downward, 

 which tendency still continues, being influenced by the opening of the new Cuba 

 crop season with sales at 2>^c. c & f. 96 test for December and January shipments. 

 As we write, January shipment is offered at 2 7/16 c. c. & f. 96 test basis, equal to 

 3.80c. landed, with December held at 2j4c. 



Buyers are disposed to purchase slowly and on a scale down when practicable 

 until the upward turn is visible. ■ . 



Last season the bottom was touched at 2 5/16c. c. & f. on February 13, with J 

 a few sales, but larger business was practicable only at"2^c'. c.. & f. This season 

 the Cuba crop will be larger, but with the European markets well maintained at 

 a considerable advance over our parity, there is small reason to expect any essen- 

 tial difference in values. During the first half of the new year, there will be Tariff 

 agitation for reduced duties which will have an effect on, the marketing of the crop, 

 probably delaying purchases beyond fairly immediate wants of refiners here unless 

 a speculative sentiment should appear to buy and hold off for prospective lower 

 duties. One or two things in Tariff changes can be taken for granted — first, a free 

 admission of 300,000 tons per annum from the Philippine Islands; second, to offset 

 this concession on the part of the domestic sugar interests, the duties on sugar 

 from Cuba and other countries will remain nearly or quite unchanged. It is just 

 possible that a small reduction may be made from the 1.685c. duty on 96 test, but 

 only after extreme opposition. If such reduction should be made, the Cuba Re- 

 ciprocity Treaty still provides for 207o differential on the highest fixed duty. 



Should the highest duty be l>^c. per lb. for 96 test, the reciprocity duty for 

 Cuba would be 20% less, say a concession of 30c. per 100 lbs., and in order to 

 leave the differential at 34c. per 100 lbs., the reading of the Reciprocity Treaty 

 would have to be changed or a new Treaty made after six months' notice by either 

 side. 



The hearings already had by the Ways and Means Committee of the House 

 of Representatives developed a variety of requests, varying from free duty, raw 

 and refined, to unchanged or higher full duty rates. 



The question of revenue will have a strong bearing on the outcome of the 

 sugar schedule, and as already said we look for little or no change with the ex- 

 ception of the addition of free sugar from the Philippines, although there is strong 

 pressure on the Committee to do something more for the consumer's interests. 



Cuba has never been able to take full advantage of the 34c. per 100 lbs. dif- 

 ferential, except at rare intervals, for one reason and another. Would she be any 

 better off with a differential of 30c. per 100 lbs. on a 1^4c. duty on 96 test? 



Under the 1>2C. duty, Java might become a larger competitor than now for 

 American trade to the disadvantage of Cuba. Any change in duties seems to bear 

 more consequences to Cuba than appear on the surface. 



European markets have continued above the parity of our markets (now 26c. 

 per 100 lbs.) and beet sugars thus excluded from importation. 



The beet crop season is virtually ended and crop reports have no influence, 

 the latest estimate of outturn being 6,490,000 tons for all Europe. Less European 

 beet sugars will be required in the United States than last campaign, when imports 

 reached 139,500 tons. 



Present value of 88 analysis beet sugar is 10s }id equal to 4.12c. per lb. landed 

 for Centrifugals parity here. 



Refined sugar shows increasing consumption and will continue to do so through- 

 out the campaign because no stock of old crop domestic beet granulated remains 

 in stock and very little of new crop will be carried over into the new year, as com- 

 pared with last year. 



The outlook is for a good and satisfactory condition of the sugar trade to all 

 concerned in the coming campaign. 

 New York, December 9, 1908. 



