THECUBAREVIEW 33 



SUGAR REVIEW 



At the time of writing our last review on the New Yorlv Sugar Market dated 

 September 28th, 1920, the market was quoted on tlie basis of 9c c. & f. for Cubas. 

 Since that date a new low point in the price of raw sugars has been reached, the 

 market declining until on October 8th the quotation was 6%c c. & f. Since that 

 date, however, the market has firmed up to 7%c c. & f., followed by a reaction to 

 71/^c c. & f., at which the market is now quoted. 



The principal item of interest has been the ending of the 1919-1920 Cuban crop. 

 On October ISth Messrs. Guma-Mejer cabled us that the Central Santa Lucia had 

 finished grinding with a total crop outturn for the entire Island of 3,730,077 tons. 

 Mr. Himely, the agent of the Federal Sugar Refining Company in Havana, places his 

 figure slightly lower at 3,728,975 tons. The crop movement is now, of course, very 

 small and the arrivals at the shipping ports of Cuba and exports from the Island 

 are about usual for this season of the year. The weather continues quite favorable 

 for the new crop, scattered rains falling in many parts of the Island. The new crop 

 last year started November 1.5th, which was a very early start, but was occasioned 

 by the very heavy demand for sugar throughout the world. It is doubtful if the 

 new crop will start as early this year as it may possibly be affected by the fact that 

 there is still a large balance of unsold sugars in the Island. On account of the facb 

 that some of the local banks in Cuba were in financial straights owing to the situation 

 affecting raw sugars. President Menocal of Cuba found it necessary on October 12th 

 to declare a fifty-day moratorium Avhich stated that the drafts, notes, bills of ex- 

 change, obligations, orders and other documents of credit which are due or may 

 become due up to December 1st will not be collectible until that date. Only 10 per 

 cent, on checking accounts and 12 per cent, on savings deposits below $2,000 can be 

 drawn by depositors. However, necessary sums to pay customs duties, taxes, fiscal 

 revenues, and other taxes imposed by the municipality or the province may be drawn 

 against the creditor's current accounts. 



According to our telegraphic advices from Louisiana grinding of the new 1920-1921 

 crop has started during the past week and these sugars will soon be offered on the 

 market. Estimates of the production to be expected are not quite as optimistic as 

 formerly and it is likely that the crop will outturn in the neighborhood of 175,000 

 tons. A tropical storm which struck the Louisiana sugar belt the first of the month 

 inflicted some damage over a part of the district, but the damage was not particularly 

 severe although some cane was blown down. 



Conditions in the refined sugar market here continue to have their effect on the 

 raw situation. The refiners along the eastern seaboard are experiencing only a very 

 light demand for their product and consequently are little interested in raws and 

 this interest is only for the nearby positions. While some refiners quote higher prices- 

 the general market price for cane granulated sugar is lie less 2 per cent, for cash 

 and buyers have been obtaining all the sugar they require at this price. There i& 

 a fair inquiry for sugar for export and a good business has been done recently, 

 mostly in small lots, on the basis of 10c per pound, net cash in bond f. o. b. New 

 York for export. 



The American Sugar Refining Company, which has withdrawn from the market 

 for a considerable period, has again entered and is quoting refined sugar on the basis- 

 of 12c f. 0. b. at their refineries in New York, Boston, Philadelphia and New Orleans. 

 This refinery has issued the following letter proposing terms of settlement on the 

 undelivered contracts for high priced sugars which they still have on their books, 

 as under : 



THE AMERICAN SUGAR REFINING COMPANY has sent the followhig letter, 

 dated October 13th, 1920, to all of its customers : 



