T H E C U B A R E V I E W 33 



SUGAR REVIEW 



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



CUBA A POSITIVE COMPETITOR OF JAVA FOR THE TRADE OF JAPAN 1 



SUGAR STOCKS DECREASE 



Our last review for this magazine was dated October lo, 1913. 



At that date the quotation for 96° test Cuba centrifugal sugars was 3.42c. per pound 

 "duty paid and is now 3.64c. per pound. 



On the cost and freight basis it was then 2 l/16c. per pound and is now 2 9/32c. c & f. 



It will be noted that the quotations have increased somewhat during the month as the 

 visible supplies from Cuba diminished. On October 15th the total stocks of the U. S. 

 Atlantic Ports and New Orleans and stocks in the entire island of Cuba together were 

 273.936 tons and are now 168,638 tons, showing a decline of 105,298 tons for the month. 



The advance noted has brought the diflference in parity between centrifugals and Eu- 

 ropean beet sugar from 68c. then to 41c. per 100 pounds now. 



The visible suppplies from local points is still sufficient for the remainder of the season 

 to prevent a further rise to the full parity of Europe though supplies may be drawn upon 

 sufficiently to reduce this differential somewhat further, but there is little prospect of the 

 parity becoming equalized before new crop Cubas are available. 



The fact is that the improvement in prices d'uring the period under review which was 

 not anticipated in our last, has been owing to a change of policy by the domestic beet 

 sugar factories in withdrawing their refined product from the far eastern markets, 

 thereby increasing largely the distribution of cane refined in these sections, and calling for 

 increased suppplies of raws I)y our cane refiners. 



This fortunate circumstance has turned to the special advantage of the Cuban sellers 

 as seen in the improvement of values under necessary requirements. 



European markets under new beet crop conditions have worked in the opposite direction 

 from our market as will be seen from the fluct.uations in beet sugar since October 15th 

 at 9s 9%d to 9s TVod on the 21st, to 9s 11 %d on the 23d, to 9s iVjd on the 31st. No- 

 vember opened at 9s 6%d declining to 9s 6d at this writing. 



The Louisiana cane crop is now coming to market under sales contracts for delivery 

 of 400,000 bags or more at New Orleans up to December 15th, at 3.31c. per pound, basis 

 96° test. Some later sales have been made at rather higher prices, say at 3.36c. per pound 

 f. o. b. New Orleans. Some 16,000 bags of Louisiana sugars are on the way to Atlantic 

 Ports U. S. and other shipments north will follow at a cost of .15 to .20c. added to the 

 f. o. b. New Orleans price. 



The higher market in the United States for raws has led to resales of Cuba sugar 

 bought originally for shipment to the United Kingdom. 



Xo sugar of the present Java crop has been shippped to the United Kingdom or the 

 United States, all being taken for Japan, China and India at higher values than obtain- 

 able elsewhere. 



A new and important innovation to the Cuba sugar trade was the sale recently made 

 of some 42,000 bags centrifugals for shipment from Cuba to Japan at an understood price 

 of 2.0SC. per lb. f. o. b. Cuba, with freight rate estimated at .33c. per lb. via Suez Canal, 

 is causing unusual interest throughout the sugar world. It may be that the shipment will 

 go through the Panama Canal if the canal is open for business at that time, but the rate of 

 freight would not vary materially. The importance of the sale lies in the fact that it is 

 the first time in history that Cuba and Japan have been united in direct sugar business 

 interests, and the possibilities which are opened thereby as to the reconstruction of the 

 sugar business of the world by the use of the Panama Canal in the immediate future. It 

 will afford Cuba a trade outlet of great value enabling that country to increase her crops 

 inrlefinitely with the opening of the Panama Canal. 



The sale brings Culia to the foreground as a positive competitor of Java for the trade 

 of Japan. 



P»y our Java cable the market value r>f Javas for shi])ment is 1 1 shillings per cwt., 2.40c. 

 per lb. free on board, and the freight to Japan is the equivalent of .11c. per II)., togetiier 

 2.r,]c. per lb. against 2.41c. per lb. from Cuba. 



