THE CUBA RE VIE W 



SUGAR REVIEW 



Specially written for The Cuba Review, by Willett & Gray, Xew York 



Our last Review for this magazine was dated ]\Iay 10th, 1915. 



At that date, Centrifugal sugar of 96* test was quoted at 3 5-8c. per lb., cost and freight, 

 and 4.64c. per lb., dutj' paid. Today's market quotation is 3 7-Sc. cost and freight, 4.89c. 

 duty paid. 



During the time from ^lay 10th to June 7th, the course of the market quotations has been 

 as follows: May 10th, 4.64c.; 11th, 4.77c.; 12th, 4.89c.; from the 12th to 18th, steady at 4.89c.; 

 19th, 4.83c.; 20th, 4.89c.; from 20th to 27th, steady at 4.89c.; 28th, 4.9oc.; from 28th to June 

 4th, steady at 4.95c.; June 7, 4.89c. per lb. 



It will be noted that the month shows an improvement in prices from 4.64c. to 4.95c., or 

 31c. per 100 lbs., and that quotations have been much more steady and without the frequent 

 fluctuations noted in previous months. 



This result has been reached largely by the fact that cable advices received by ourselves 

 from Java on May 26th reported that unseasonable weather so far was preventing expected 

 an-ivals of sugar crop at shipping ports. 



The importance of this announcement is in the fact that Great Britain, to a large extent, 

 is dependent on the Java white sugars already purchased from the present crop, to help out 

 her consumption of refined sugar, and this delay in shipments necessitates the Government 

 to come to the United States markets for increased quantities of refined sugar. 



Purchases of refined here for export to Great Britain and France during recent weeks, exceed 

 100,000 tons at prices from 4.50c. to 4.70c. per lb. cash, in bond, free on board New York and 

 New Orleans. 



Also purchases of centrifugal sugars in Cuba for Europe have been made to some extent up 

 to 3.75c. per lb., free on board Cuba ports. 



These foreign purchases have no doubt tended to sustain prices above the former normal 

 value quoted as 3^c. cost and freight, 4.77c. duty paid, in spite of the fact that the visible 

 production of the Cuba crop, to end of iNIay, has increased to within 71,510 tons of the visible 

 at corresponding date last year, and as 82 centrals continvie working, not\\'ithstandmg con- 

 tinued reports of generalh' unfavorable weather, against 30 working last year and 60 in 1913 

 at con'esponding date, it is becoming evident that the final crop estimates of Cuban exports 

 must be increased. 



It is possible that the crop may yet reach our own estimate of 2,600,000 tons, made in 

 October, 1914, and still unchanged. 



Natm'ally the high prices obtaining for sugar, and the unusually large profits to planters 

 resulting, is an inducement to continue grinding even under ordinary unfavorable weather 

 conditions. 



The shadow over the future of the United States in its relations to Germany still remains in 

 evidence, and the final outcome, is as difficult as ever, to forecast. There are no indications 

 of peace prospects in any direction, and if none appear during the next few months, there is 

 good reason to expect another crop season of high prices for sugar. 



As to refined sugar for local consumption, the price has been able to be advanced from 6.00c. 

 less 2%, to 6.10c. less 2%, by reason of the increased foreign demand helping to take care of 

 the surplus production in instances. 



In the case of the Federal refinery, however, the company announced on June 2d as follows: 

 viz., "For shipment as soon as possible, we will allow withdrawals against conti'acts or accept 

 new business basis 5.85c. Raw market and general situation is strong and fully warrants the 

 higher prices. We make this move solely to protect our trade, offsetting competitors' 

 long time delay contracts." On the 4th the Federal further announced that all withdrawals 

 will take the original contract price, and that the concession to 5.85c. regular terms has been 

 discontinued. 



Other refiners made no change from 6.10c. less 2% list price, and 6.00c. less 2% selling price. 

 The custom has grown up this season, of refiners booking at one time as nuich sugar for future 



