34 THECUBAREVIEW 



SUGAR REVIEW 



Specially written /or The Cuba R$n9iP by WilUU & Oray, New York, N. Y. 



Our last report was dated January 12th. The International Sugar Committee having 

 :arranged through a sub-committee the matter of freight rates from Cuba to the United States, 

 and which matter we covered in our last report, the details of the Cuban agreement were 

 completed, and were published by us in full in our Weekly Sialislical Sugar Trade Journal of 

 January 31st, 1918. In connection with same, while not going too largely into details, it might 

 be stated that the contract itself covers 2,500,000 tons of sugar, and there are options included 

 to accept an additional 250,000 tons up to August 15th. With this 250,000 tons added to the 

 2,500,000 tons, there is a total quantity of sugar accounted for of 2,750,000 tons. However, if 

 the crop should exceed this figure there are further options allowed by the Cuban planters 

 to dispose of any additional sugar made by them in excess of this quantity. The United 

 Kngdom and Allies, through the Royal Commission, are to take one-third of these sugars, 

 •or say 850,000 to 1,000,000 tons. The shipments of this crop are to be extended for a period 

 of eleven months, and under such arrangement will amount to about 150,000 tons per 

 month to the Eastern United States, including New Orleans and Galveston. The United 

 Kingdom and Allies are to obtain tonnage for 80,000 to 100,000 tons per month for their portion. 

 During December and January the necessary tonnage was rather difficult to obtain and it was 

 not until the end of the month of January that the full quota to be shipped in these two months 

 (180,000 tons) was accounted for. For February ample tonnage seems to have been secured, 

 .and already steamers are allotted to carry the full 150,000 tons. Under such conditions it is 

 more than likely that the February shipments will materially exceed the 150,000 tons men- 

 tioned in the agreement. This condition of affairs is very satisfactory to all concerned as it 

 will undoubtedly tend to give our refiners sufficient supplies of raws to distribute refined sugar 

 •generally and thus alleviate the long continued scarcity. 



Porto Rico, while not entering into any concise agreement, is being allotted tonnage on a 

 basis proportionate to the size of their crop, and these sugars will be shipped about 40,000 to 

 .50,000 tons per month. 



Although shipments from Cuba have been going on about as ex'pected, local conditions in 

 New York, Philadelphia and Boston, owing to severe weather, have been irregular. Refiners 

 bave had extreme difficulty in getting raw sugars to their refineries, and in addition coal sup- 

 plies have been difficult to obtain and the production of refined sugar has thus far been going 

 ■on very irregularly. Refiners have been doing everything possible to alleviate conditions, and 

 while the distribution is, of course, better than it was in December, there are still some sections 

 where sugar supplies are scarce. 



With the fixing of the freight rate at 383^c. from the most favorable Northern Cuban 

 Ports to New York the sales basis has been established at 4.985c. cost and freight to New York 

 tor 96° Cuba Centrifugals. For localities in which there is a difference in freight, such as 

 Boston, where the rate is Gc. more, the quotation is naturallj' advanced to 5.045c, and to Savan- 

 nah and Galveston where the price is 232C. less, is reduced to 4.96c. c. & f. All business 

 •done during the month has been at the above quotation of 4,985c, plus or minus the differ- 

 •entials in freight from the 383^c. basis. 



There is no special news from any of the crop producing Islands. Harvesting in Cuba, 

 Porto Rico and Santo Domingo appears to be going on very satisfactorily, and indications 

 point to full up-yields at this early time. 



The growers of the new Java crop, which commences harvesting in May, 1918, appears to 

 be anxious to dispose of their sugars, as there is remaining in the Island of Java a large stock 

 left over from the last crop. We are unable to obtain definite information regarding the extent 

 ■of this stock, as this is withheld, but we estimate that there is at least 500,000 tons of sugar 

 remaining unsold. With this large balance of the crop and with a new crop coming along 

 shortly, sellers have made important concessions to consummate sales, and in this connec- 

 tion we received a cable on January 22, from Java, in which was reported sales of Brown raw 

 sugar at 2.35c. and for the White raws, 2.78c. both ex-warehouse in Java. 



