30 THECUBAREVIEW 



SUGAR REVIEW. 



A Tendency Towards Higher Prices — Duty in New Tariff Unchanged — A Crop 



of 1,450,000 Tons in Sight. 



Specially written for The Cuba Review by Willett & Gray of New York. 



Our last review for this magazine was dated July 8. 



The sugar quotations at that time were 3.92c. landed for 96 test Centrifugals 

 for prompt shipment, and 10s. 5^d. f. o. b. Hamburg for European beet, July de- 

 livery, with refined sugars in New York selling on basis of 4.70 to 4.75c. less 1% 

 basis of granulated. 



The market continued quiet and steady without important change until the 

 19th, when considerable Centrifugals for July and August clearance were sold at 

 2 19/32c. c. & f., equal to 3.95c. landed. European markets being without change. 

 There was a slight reaction on the 20th, followed by a recovery on the 22d, with 

 a good business doing here and an advance of ^d. in Europe. 



On the 20th a strong buying movement set in, which advanced prices to 25^c, 

 c. & f. for Cuba Centrifugals, equal to 3.985c. landed, 200,000 bags being sold on 

 that day, including some Porto Rico sugars on same parity, and the refined sugar 

 market responded with an advance to basis of 4.85c. less 1% for granulated. 



This improvement caused an advance in sellers views for Java sugars for 

 July shipment to lis. c. f. and i., equal to 4.09c. landed basis, 96 test. 



During the greater part of July discouraging reports of the European beet 

 crop were received, the weather being cool and showery, causing a firmer market 

 over there and an advance on the 27th to 10s. B^d. for beet, which has since 

 been maintained; mail advices received by us yesterday from Hamburg, however, 

 state that, with good weather from now until October, the beet sugar crop can 

 recover from the effects of the recent unfavorable conditions, but F. O. Licht 

 cabled us yesterday that the weather was still unfavorable for the growing crop 

 in some sections. 



On the 30th, a further advance here was made in full duty sugars to 4.02c. 

 for 96 test and Javas for July-August shipment were sold to the United Kingdom 

 at 10s. 9d. c. &f., equal to 4.06c. for 96 test if sold here. 



Yesterday (August 3) a lot of St. Croix Centrifugals for prompt shipment 

 were sold at 4.05c. duty paid for 96 test, equal to 2 ll/16c. c. & f . for Cubas, show- 

 ing a further advance of .03c. This sale encouraged Cuba holders to advance their 

 views to 2^c. c. & f. 



To-day, European markets are firmer and have further advanced to 10s. 9^d. 

 for beet, the parity of 4.28c. for Centrifugals at New York. 



The local market is now very strong, with the tendency of still higher prices 

 before the close of the season. 



.Stocks at the four ports U. S. are steadily decreasing each week, and if 

 the demand for refined sugars continues good, as expected, the sugars still held 

 in Cuba will be wanted at full prices and it will be necessary to draw on Java 

 for supplies to meet the requirements of the refiners until new crop sugars become 

 available. 



The lowest price named for Javas afloat (sailed early in July) is lis. U/^d. 

 c. f. and i., equal to 4.11c. landed basis 96 test, and equal to 2->:ic. c. & f. for Cubas. 

 which may soon be paid. 



The new tariff bill will probably be finally passed and signed by the President 

 this week; the duty on raw sugar has been agreed upon at the same rate as 

 before, say, basis of 1.685c. per pound on 96 test from non-privileged countries 

 and the 20% concession on Cuba sugar is continued, under the Reciprocity Treaty 

 which remains in force, as especially provided for in the bill. 



Cuba has prospered under the Reciprocity Treaty, and her prosperity will 

 doubtless increase, as will her sugar crop from vear to year. The visible pro- 

 duction to date of the present Cuba crop is 1,420,000 tons, and 5 Centrals are still 

 grinding, giving promise of a total production this year of approximately 1.450,000 

 tons. 



The extent of new plantings and recent weather conditions favor a much larger 

 sugar crop in Cuba next year. 



The United States cane and beet crops are doing- well, the present indications 

 pointing to an increased output of each of them. In California the beet crop is 

 a large one and harvesting has already commenced in the southern section. 



Consumption is going on on a scale large enough to absorb the crops as 

 produced, and the outlook, s-enerally, is a good one. 



New York, August 4, 1909. 



