34 THECUB A REVIEW 



SUGAR REN'IEW 



Specially \vritten tor Thk Cvba Review by Wii.i.ktt & Orav. of New York 



Our last review for this magazine was dated July 16, 1913. 



At tliat date the quotation for 96° test Cuba centrifugal sugar was 3.54c. per lb. and is 

 now 3. 73c. per lb., the highest value obtained this year. 



A uTonth ago our market was 40c. per 100 lbs. below the parity of European beet sugar, 

 but this difference has since been reduced to 29c. per 100 lbs. and there is a possibility 

 of reducing it further before the close of the season. 



The advance from 3.54c. was steady, on purchases by the reliners to meet the largely 

 increasing demand for their product which came from all parts of the country, indicating 

 a big consumption and near the close some 500,000 bags Cuban and other raw sugars 

 were sold basis of 2% c & f or 3.73c. landed for %* test. 



Included in the sales here were 25,00<1 tons Cubas. originally bought for shipment to 

 Europe, but resold to America at a good proiit and replaced by purchases of beets for the 

 English refiners, thus strengthening" the European markets. 



Refiners here will still need large supplies of raws before the close of the .<;eason and, 

 with stocks not being excessive and decreasing constantly, the holders may be expected 

 to demand some further advance, say to about 2'^'2C. c &^ f (3.S6c) or close to the parity 

 of European beet quotations. 



In consequence of the resale of English-owned Cubas to America and the pro.<;pect of 

 the Cuban crop outturning fully up to the recent estimates, it is now unlikely that it will 

 be necessary to import here much, if any, full duty sugars, this year, but the balance 

 of the Cuba crop will doubtless be wanted here at full prices. 



Standard fine Granulated is now at 4.70c. less 2 per cent for casli quoted by all refiners. 



The domestic Beet Granulated of new crop, for October delivery, is offered at 4.50c. 

 less 2 per cent in a quiet way : the crop promises to be larger than the record crop of last 

 year, and after October 1st it will be coming to market rapidly .and be an important 

 factor, as it will undoubtedly be pressed for sale, supphnng the demand to an unusual 

 extent, probably forcing the refiners to reduce their meltings greatly during October- 

 December. 



The Louisiana cane crop is making good progress with prospects of a normal yield 

 and, also will come on the market during October-December. 



The producers of these domestic crops will be anxious to take advantage of the present 

 tariff' while it remains in force. 



European markets further declined after July 16th until Beet touched Ss 9%d f. o. b. 

 Hamburg on July 22nd, after which date there was a steady recovery until to-day, when 

 the quotation is 9s 4^'jd and now the paritv of 4.02c. for 96° test Centrifugals at New 

 York. 



The Java crop, which began in May, has been estimated to outturn 1,500.000 tons, but 

 has been suff'ering from drought and the estimate is just reduced to 1.450,000 tons; none 

 of this crop has yet been shipped to Europe or .-Kmerica. as the eastern markets are 

 taking it at relatively higher prices than those ruling in western markets. 



In Washington, Congress is still discussing the new tariff' bill, but has not yet reached 

 sugar in the Senate, the prospects being that tlie bill will not finally be passed before 

 October. 



As proposed by the Senate Committee, the bill provides for a reduction in sugar duty 

 of 25 per cent on Alarch 1, 1914, and for free sugar on May 1, 1916. 



If the Senate approves of March 1. 1914, for date of effect of sugar schedule, it will 

 have to be referred to the Conference Committee as the House voted to put it in effect 

 the day after the bill passes, and it is possible that a compromise date will be finally agreed 

 to. perhaps January 1, 1914. 



It must be remembered that the receipts of the Cuba crop during January and February- 

 are usually enormous, amounting to 400,000 tons, and as these must be sold by the 

 planters to obtain funds, a reduction in duty on March 1st would be discounted, so that 

 the domestic sugar producers would not be much, if any better off, than if the new 

 tariff is put in force January 1st. 



It is now noted that the wording of the Cuban reciprocity treaty is such as to ap- 

 parently prohibit any reduction in present rates of dtuty on Cuban sugar, although it is 



