32 THECUBAREVIEW 



SUGAR REVIEW 



Specially written for The Cuba Review by Willett & Gray, New York, N. Y. 



Since we last wrote you on August 29th, official announcement has been made that the 

 price of new crop Cubas would be on the basis of 5.50c. f. o. b. Cuba, which reflects a price 

 of about 5.90c. c.i.f. The contract in detail has not yet been published. The official announce- 

 ment of this price was dated September 13th, and is as follows: 



Purchase of New Cuban Crop. 



United States Food Administration, Announcement No. 1188.— Septemher 13, 1918. — 

 The Sugar EquaUzation Board to-day closed a contract with the Cuban Minister for the 

 purchase of the Cuban sugar ciop at a price basis of about $5..^0 per 100 pounds f. o. b. Cuban 

 ports. This purchase is made on behalf of the American, Enghsh, French and Italian Go-vern- 

 ments. 



The crop will begin to be available in December, and its division between the AlUes will 

 be directed by the United States Food Administration. These arrangements, as was the case 

 last year, put an end to all speculation in sugar and assure an equitable di«tiibution between 

 all Allies and our own consumers. 



On this basis full duty sugars will be purchased at a price of about 5.64c. ci.f. and our 

 domestic sugars at 7.28c. 



Official prices have been fixed for British West Indies sugars, which enjoy a preferential 

 duty in Canada, and 96° test centrifugals from these possessions will be sold at basis of 6.10c. 

 ci.f. New York to Canada buyers. For HaUfax and St. John, N. B., a price of 6.30c. c.i.f. 

 has been fixed, provided the sugar is shipped by outside freighters and not the regidarly 

 established steamer lines. 



The visible production in the Island of Cuba to September 28th, was 3,287,999 tons, 

 with one central still at work, and the final crop bids fair to exceed our estimate of 3,350,000 

 tons. 



As regards our domestic cane crop in Louisiana, the condition of the cane permits of but 

 little complaint. It would now appear that only an early and destructive freeze would ma- 

 terially mar the encouraging prospects in this section. 



As far as the domestic beet sugar crop is concerned our estimate is unchanged at 665,000 

 tons. The campaign is getting under way slowly, but now that October has arrived, the 

 number of factories starting up will increase rapidly. 



We received on September 19th, our cable from the PhiUipine Islands giving exports 

 during August as 5,100 tons to San Francisco, and 10,500 tons to Far Eastern countries. 

 Total exports to the United States this year to August 31st are 46,000 tons, against 37,336 

 tons for the same period last year. The Sugar Equalization Board has made a radical change 

 in the manner of handling Philippine sugars destined to the United States. There is a Controller 

 in the Philippines appointed by the Government and all sugars destined to the United States 

 will have to be placed under his control. If any of the merchants have any stocks accumu- 

 lated these supplies wall also have to be delivered to him after allowing for carrying charges, 

 commissions, etc. Mr. Fairchild, of Messrs. W'elch, Fairchild & Co., Inc., of Manila, is to be 

 the Federal Controller. In further connection with PhiUppine sugar an arrangement has 

 been made to adjust the prices of these sugars and we understand that all the old crop un- 

 delivered, destined to the United States is to be priced at 6.55c. for 96° test and 5.55c. for 88 

 test sugars, both c.i.f. New York. According to the recent announcement of the Food 

 Administration all new crop domestic sugars are to be sold at 7.28c. c.i.f. New York, and new 

 crop Philippines will undoubtedly receive this figure. Freight to United States will be $40,000 

 per ton. 



From Java we received cable advice giving exports during August as 149,000 tons, of 

 which quantity 3,000 tons is destined to Europe and the balance to Far Eastern countries. 

 As far as the question of importing Java sugars into the United States is concerned the matter 

 appears to have been dropped for the present and no further information along these lines is 

 available. We received the following correspondence under date of August 8th, with regard 

 to the formation of a seUing combination to fix prices. 



