32 THECUBAREVIEW. 



lasses tanks of 50,000 gallons capacity railroad, live stock and various small 



each, additional defecators and steel plat- improvements. 



forms for water and juice pumps and a 



new cane crusher to work in front of 



the mills, which will increase their grind- The Hormiguero Central Company of 



ing capacity 15 to 20 per cent. New Cuba announce that it will pay, on pres- 



buildings for employees and laborers entation at the Treasurer's office, No. 



and a new warehouse and bakery will 69 Wall Street, New York, Coupon No. 



cost about $11,000. The balance goes 38, due November 1. on the First Mort- 



into new fields, rolling stock for the gage 8 per cent, gold bonds. 



SUGAR REVIEW. 



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



Our last sugar review for this magazine was dated Oct. 2. 



The present summary covers the intermediate time to date, which time has been a 

 period of abnormal conditions. Centrifugals closed Oct. i at 4.20c. per lb. for gb 

 test, advanced during the period to 4.36c. per lb., closing at 4.30c. per lb. 



Several conditions led to this large advance, covering quite irregular movements 

 from day to dav. The most important feature has been the action of the European 

 markets under speculative manipulation on the foreign sugar exchanges. Soon after 

 F O Licht gave out his preliminary estimates of the European beet crop, as men- 

 tioned last month, the so-called factories' estimates came out, giving a total crop 

 estimate much smaller than that of F. O. Licht. This report, although generally 

 looked upon as improbable, yet had the effect of starting a speculative movement 

 for which the sugar sentiment prevailing in Europe at the time was ready and will- 

 ing to participate in. As a result speculation became rampant, not only in foreign 

 beet-sugar contracts, but several of the largest speculators in Europe turned their 

 attention toward new crop Cuba Centrifugals and bought largely for future deliveries 

 up to March shipments from 2ic.. opening price, to 2 ii-i6c., cost and freight, closing 

 prices, g6 t^st. thus confirming our anticipations in our last review of the course of 

 Cuba crop movements from the beginning at 2jc., c. & f. 



There is quite as much power in determination in the minds of capable manipu- 

 lators to move orices upward as actually exists in statistical, and this seems to be 

 the position in Europe at the present moment. The only really sufficiently known 

 basis for the movement now going on toward higher prices is that the world's 

 supplies for consumption during the present campaign are so near the parity of 

 such estimated consumption that any damage to any crop must immediately affect 

 the markets ?nd give these speculators their anticipated profits. 



Of course, such a movement as now seems probable is very largely to the 

 interests of Cuban planters w^ho promise to have an unusually large stock with which 

 to meet the speculative basis of prices. However, the Cnited States refiners are by 

 no means likely to keep up to the parity of European movements, so that the full 

 benefit of currert valuations in Europe need not be expected in Cuba and, in fact, 

 such distrust in an adequate basis for this European speculation exists that we are 

 following far behind quotations making on the foreign exchanges. 



As regards crops, Cuba, of course, will exceed last year and the amount of 

 such excess only remains in doubt. 



Eouisiana has been grinding two weeks and shows results considerably in 

 excess in the way of damage to the standing cane by the last storms than have been 

 anticipated and reduces the crop estimate to 325,000 tons maximum. 



The Java and other competitive crops with Cuba promise about the same size 

 as la.^t season. 



The refined sugar market in the United States is now largely a domestic beet 

 granulated sugar market: all beet factories are in full work and showing anxiety 

 to sell their product rapidly, this method having proved satisfactory in the last 

 campaign. 



As regards the prospects from the Cuban standpoint, it may prove that present 

 values of, say. 2|c., c. & f., for February-March deliveries are high enough for the 

 month in which the largest production is expected, but that always counting upon the 

 good influence of European speculators upon the market considerably higher prices 

 will be shown during the present campaign. 



New York, Nov. 4, 1909. 



