34 THECUBAREVIEW 



SUGAR REVIEW 



Specially Written for The Cuba Review by Wili-ett & Gray, of New York 



MORE EUROPEAN SUGAR REQUIRED THE DISPOSAL OF RAW SUGAR 



STOCKS ADVISED TARIFF UNCHANGED 



Our last review for this magazine was dated August 12, 1912. 



At that time the quotation for centrifugal sugar 96 degrees test was 4.05c. per lb 



The present quotation is 4.36c. per lb., showing an improvement in market conditions 

 of .31c. per lb. 



The Beet Sugar Markets of Europe during the same time have made fluctuations as 

 follows: Beginning August 12 for the current month deliveries lis 3d, declined to lis 

 1V2, advanced to lis 3d, to lis 4y2d, to lis 6d, to lis 9d, to lis SVi, to lis 9d, to 

 12s 4y2d, to lis 9d, to lis 5i/4d, to 12s, to 12s 6%d, to 12s iVad, and 12s 3d at the close 



The European market have been, and still are largely under the influence of a broad 

 speculative bull movement, which promises to carry contract prices higher before the 

 end of the present month. In order to accomplish this end, the bull party allowed some 

 50,000 tons of old crop sugar stored at Hamburg, to be sold to the United States at about 

 1 shilling per cwt. below the current market quotation, probably on the theory that such 

 diminuation of actual stocks would discommode the Bear interests, and advance the 

 delivery contract prices, which it is quite likely to do, as only a very small stock of old 

 crop sugars remain available for purchase. A rather unexpected opportunity of making 

 these beet sugar purchases, has placed our refiners in better position as to needed supplies 

 here before new crop Cubas become available. Although it is evident that further quan- 

 tities of European sugar will be required here to extent of 50,000 tons to 75,000 tons, 

 before end of year, but these can come from the new beet crop in October and December 

 and at the new crop basis of values say at present about 10s 3d f. o. b. Hamburg. Some 

 of our correspondents are of opinion that with the beet and cane crops favorable pros- 

 pects that the total supplies of sugar in sight for the coming campaign, that beet sugar 

 valuation may recede to the vicinity of 9s per cwt f. 0. b. Hamburg. This would mean 

 a parity of 3.88c. per lb. for 96 degrees centrifugals. 



On the other hand there is no doubt but that the weather in Europe, and especially in 

 Germany and Austria, has been and still is quite too cold and rainy for the best growing 

 results, and the following two months of weather conditions may vary the estimate of 

 outturns very considerably. 



A crop of size beyond precedent is looked for in Cuba, but this is also subject to the 

 weather conditions of the future months. It is, therefore, too early for relialile prog- 

 nostication of crop proportions. 



All conditions relating to the United States beet crop are satisfactory, and point to 

 the largest deliveries on record, and beginning with October such deliveries will be 

 pushed to market as rapidly as possible, and will have a sensible effect in the reduction 

 of the amounts of raw cane sugar required by our refiners. 



It would seem advisable to dispose of remaining stocks of raw sugar during the next 

 30 days, regardless of any European advances from manipulation, which can only be 

 a temporary nature and effect. 



The eventual trend of Europe must be downward to the basis of new crop values, 

 which new crop value is variously estimated by different interests at from 9s to 10s 

 per cwt. f. o. b. Hamburg. 



At the close of the last sales of centrifugals are at 3c. c. and f . 4.36c. per lb. Duty paid for 

 September shipment. There is a good demand at this figure, but with little offering. 

 Warmer weather in September than in August has increased the demand for refined 

 sugar for consumption, and the withdrawal from refiners on contrasts are large, and 

 in instances, days and weeks ahead for possible deliveries. The quotation for fine 

 granulated for actual business is 5.10c. less 2 per cent, with list prices of some refiners 

 at 5.20c. less 2 per cent. 



Congress adjourned without taking action on sugar tariff, and all rates remain as 

 before. 



New York, Sept. 11, 1912. 



