T H E C U B A R E \' I E W 35 



SUGAR REVIEW 



specially written for The Cuba Review by Willett & Gray, of New York 



STOCKS LARGELY IN EXCESS CUBA S ASSURANCE OF A MARKET 



FOR ALL HER SUGAR 



Our last review for this magazine was dated ^lay 15, 1913. 



At that date the quotation for 96° test Cuba centrifugals was 3.33c per lb. There has 

 been no other quotation during the month under review. Some effort at times was 

 made to advance to 3.36c per lb., but after a few days holding the offerings returned to 

 3.33c and business was resumed. 



Refiners always took all offerings at this basis for Cubas and at 3.30c per lb. for the 

 free duty Porto Ricos. 



As a consequence of the free buying of refiners, their stocks in refineries and ware- 

 houses are largely in excess of last year's holdings at the corresponding time. 



The parity of the Cuban prices, however, has been sufficiently below the European 

 markets to encourage quite an increase of exports to foreign markets. These pur- 

 chases for foreign exports amount already to 250,000 to 300,000 tons for Europe, 50,000 

 tons for Canada and 22,000 tons for Vancouver, a total of about 350,000 tons diverted 

 from the United States supplies, but still enough left of visible supplies to meet the 

 wants of the United States up to the maturing of the domestic cane and beet crops, the 

 latter of which promises to be the largest yet made. 



Cuba has certainly proved this season its capacity for increasing its sugar crops al- 

 most indefinitely and at a lower basis of cost than any beet producing country if not 

 lower than any cane producing country. 



The sugar schedule of the tariff bill is. however, likely to go through the Senate 

 virtually unchanged with 25 per cent reduction from present rates of duty and 20 per cent 

 advantage to Cuba, all for three years, and after years free duty sugar from all the 

 world and no reciprocity for Cuba. 



There is no prospect whatever of any increase in the present reciprocity advantage to 

 Cuba for the next three years, and it does seem somewhat extraordinary that the present 

 administration deals so unthinkingly with the following years as to its relations to the 



Island. 



Of course, there is always present the suggestion that with free sugar voted now for 

 the world after three years, something may happen in the interim to produce other legis- 

 lation to meet conditions that may then exist. 



In the meantime as the bill will certainly stop the promotion of our domestic sugar 

 industries, Cuba can go on increasing her production with full assurance of a market 

 for it all either at home or abroad. 



European beet crops promise well under mostly favorable weather for field work and 

 the growing beet roots. 



Quotations for beets during the month have fluctuated more than Cuban, but still not 

 largely, say from 9s 3%d to 9s iV>d to 9s iVad to 9s 5}Ad to 9s 2 1/4 d to 9s 5% d at 

 the close. ■ . 



The tariff bill will be reported to the Senate for final action during the present month 

 and its discussion will continue through July and its going into operation may not be 

 until October 1st but hardly later than that date. 



Both our domestic crops of sugar will come to market under the new rates of duty 

 except the early production of California beet sugar. 



Our refined market has been extremely quiet and dull and the figures show quite a 

 loss in consumption of sugar up to the present time. The whole country has acted as 

 if the reduced tariff duties were coming in force at once and hence have carried stocks 

 from hand to mouth only. Standard I'ine Granulated after selling down to 4.10c less 

 2 per cent by some refiners has now recovered to 4.30c less 2 per cent by all refiners 

 except Arbuckle Bros, at 4.20c less 2 per cent. 



The fruit season is now at hand, and buying in larger volume is noted which may 

 lead to some improvement in both raw and refined quotations in the near future. 



New York, June ifi, 1913. 



