34 THECUBAREVIEW 



SUGAR REVIEW 



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



Our last review for this magazine was dated July IS, 1912. 



At that time the quotation for centrifugals 96 test was 4.0.)C. per lb., which, except on 

 a few days when 3.9S5c. was accepted, has been the ruling quotation ever since. 



However, the market at this writing is barely steady at 4.05c., there being free sellers 

 but no buyers on this basis. 



The rather easier tone at the close is the effect of weakness which developed in 

 European markets, the principal fluctuations on beet there being from 12s 6d to 12s 

 4yi;d to 13s Od to 12s Od to 12s 4y2d (August 2d), from which there was a steady 

 decline to lis lM;d on the 10th inst. and a partial recovery to lis 3d to-day. Meanwhile 

 new crop beet for October/December delivery fluctuated from lOs 5^,4d to 10s 3 7id 

 to 10s 6%d to 9s lOViid on August 10th and is now quoted 9s 11 Md. 



Cane sugar in the United Kingdom declined from 12s 6d to 12s. 



The decline in Europe was due to the elimination, largely, of the speculative interest 

 and to the favorable outlook for the growing beet crop. 



It must be remembered, however, that prompt beet is still very much (.22c.) above 

 the parity of our market, so that we cannot be expected to follow its fluctuations to 

 the full extent. 



Our refiners will not need to draw on supplies of full duty sugars until Xovem- 

 ber/December and then the quantity required may only be very small, but possibly 

 larger, depending upon the demand for refined sugar ; we are, therefore, mainly in- 

 terested in the movement in October/December beet now quoted at 9s 11 ^4 d, equal 

 to 4.09c. for centrifugals, in fact beet for October shipment has been offered at 10s 3d 

 c & f to New York, equal to 4.07c., which is getting pretty close to business and, when 

 the new crop comes in rapidly, about a month or two hence, it will not be surprising 

 if some beet is actually shipped to the United States and we are likely to follow the 

 market for October beet closely. 



Javas are usually offered on about the parity of beet for the same delivery, so that 

 we may expect them to compete, also, for the American demand from now until the 

 next Cuba crop is available ; reports from the Java crop, however, are not very favorable, 

 the yield thus far being unsatisfactory, but this may possibly improve. 



Our cable received to-day from Batavia indicates that eastern countries are taking 

 an increased proportion of the Java crop, the exports during July compared with the 

 same month last year being: 



July, 1912 July, 1911 



To Europe and United States 83,000 tons 79,500 tons 



To elsewhere 144,000 " 88,900 " 



Total 237,000 tons 168,400 tons 



Stocks of unsold sugar in Cul)a are reduced to about 125,000 tons and are in the 

 hands of strong holders who will demand full value for their sugars, knowing that it 

 will all be wanted at close to world prices. 



Latest reports from Europe are that a bumper crop of beets is expected and that 

 the sugar will come to market early, probably making a good beginning in September ; 

 we hear some predictions of new beet selling at 9s f. o. b. Hamburg, but it is a question 

 whether it will go as low as that for several months yet, especially as the cost of pro- 

 duction is estimated at 9s 6d and there cannot be any large surplus of world's supplies 

 for some time. 



Beets at 9s would be on a parity of 3.SSc. for centrifugals and at 9s 6d the parity 

 of 3.99c. 



Present indications are, therefore, that our market should remain steady, with only 

 moderate fluctuations for the immediate future with tendency toward a rather lower 

 level later. 



England has decided to withdraw from the Brussels Convention in September, 1913, 

 but this action does not affect present conditions, as she has been practically withdrawn 

 for several years and as the other principal countries in Europe expect the Convention 

 to remain effective until 19is. 



The United States Senate passed a Sugar Tariff' Bill July 27th, reducing the duty 

 to .95c. on 75 degree test plus .026c. for each additional degree, making the rates 1.496c. 

 on 96 degree test and 1.60c. per lb. on 100 degree test, foreign sugar raw or refined 

 and 1.1968c. on 96 degree test and 1.28c. on 100 degree test, Cuba raw or refined. 



The Reciprocity Treaty giving a concession in duty of 20 per cent on Cuba sugars 

 is to continue in force. 



