36 T H E C U B A R E V I E W 



Ahora precisamente todas las transacioncs son de poco fruto. 



La lista de precios de todos los refinadores es de 5.10c. por libra menos 2 por ciento, 

 excepto la Federal y Arbuckle que son de 5.05c. menos 2 por ciento. Bajo la base de 5c. 

 menos 2 por ciento, no calK- diula que las compras de azucar refinado aumentaran 

 considerablemente. 



SUGAR REVIEW 



Specially Written for The Cuba Review by Willett & Gray, of New York 



Our last review for this magazine was dated March 15, 1912. 



At that time the quotation for centrifugals 96 degrees test was 4.53c. per lb., and 

 is now 3.9Sc. per lb. duty paid, the lowest point of the campaign. 



The chart printed herewith" shows the course of prices for the first quarter of the 

 year, and is interesting, as indicating very clearly, what a tariff agitation can do in the 

 way of unsettling values, during the time of its discussion in Congress. During 

 January and February, without tariff agitation, prices moved very satisfactorily, from 

 the standpoint of other conditions, but with the presentation and passing of a sugar 

 schedule through the House of Representatives, removing all duty on sugar, and doing 

 away with the Cuban reciprocity advantage over foreign sugars, well founded scare 

 and demoralization came to both sellers of Cuba and Porto Rico, which has grown 

 even more intense since the chart was made. At the present writing, the greatest 

 improvement in prices over last year, as shown by the chart, has been nearly lost, 

 present value of 96 centrifugals being 3.98c. per 11). against 3.S()C. per lb. at the cor- 

 responding time last year. 



As regards the tariff prospects on which the demoralization is based, there is not 

 one chance in a thousand of a tariff passing the Senate, and receiving the signature 

 of the president, that does not give a preferential of 20 per cent to Cuba. 



Such a tariff on basis of Ic. per lb. 96 degrees test with .80c. on Cuba sugar, is the 

 maximum reduction, that has any chance of becoming a law, and the reduction in 

 duties by such a schedule is already discounted in the present price of centrifugals. 



The parity difference between Cuba and beet sugar is now .82c. per 100 lbs. ; .30c. per 

 100 lbs. is the usual yearly difference, and the remaining .52c. per 100 lbs. must be 

 credited to the discounting of that amount in the tariff. If it finally results that no 

 change in the tariff is made at this session, then this ^-jc. discounting will be recovered 

 later in the season, provided that European markets continue to hold their own. It 

 now appears that Great Britain has bought some 100,000 to 125,000 tons from Cuba, and 

 that this amount is all that she will probably require from Cuba, leaving the balance 

 of the crop for the United States. 



All signs now point to a full sized crop, up to the original estimate of 1,800,000 tons. 



Our refiners are coming into the market more freely at the current quotation of 3.98 VL'C. 

 per lb. basis, and sellers may soon recover their lost courage. 



European beet sugar, which was 15s. %d. by our last review, is now 13s. 2%d. 

 (4.80c.), after having touched the lowest point of 13s. Cane Java sugar is now 14s., 

 the parity of 2%c. c. & f. for Cuba centrifugals. 



Beet sowings for the new crop are estimated by cable to us, from F. O. Licht, at 

 5 per cent increase from last year for Germany alone. 



Refined buyers, based on the chart figures for February, have been heavy sufferers 

 from the succeeding declines. 



Jobbers added specualtive purchases to their legitimate requirements, and as a result 

 have in instances paid large suins of money to refiners, covering the difference between 

 the high contract price and current quotations, to have the contracts cancelled. This 

 is quite a different market condition from former years, when the refiners took all 

 such losses from market declines onto themselves, and gave the buyer the full benefit 

 of the lower market prices on day of delivery. 



Just now all business is on the hand to inouth basis. 



All refiners' list prices are at 5.10c. per lb. less 2 per cent, except the Federal and 

 Arbuckle at 5.05c. less 2 per cent. At the 5c. less 2 per cent basis the buying of 

 refined sugar will, no doubt, be considerably increased. 



* See chart on page 29. 



