34 THECUBAREVIEW 



THE SUGAR REVIEW 



Specially written for The Cuba lieoiew by Witlrtt cfc drdij, Xeio York, X. Y. 



Our last Revum' for this Tuagazine was dated July (i, 1915. 



At that date Cuba Centrifugal sugar 90° t(>st was (luoted at 3 lo-Klc. iier lb. cost and freight, 

 and 4.95c. per lb. duty paid. 



This quotation proved to be the high ])oint, and duruig the numtli under review there has 

 taken place the largest decline in values noted for a long period. Sales at the present date, 

 August 5, being made at 3%c. c & f, 4.39c. duty i)aid. This decline was reached as follows: 

 July 6th, 4.95c.; July 12th, 4.86c.; July 29th, 4.04c.; August 5th, 4.39c. The business has 

 been done at irregular periods. On the 8th of July a 10,000 bags sale of Cubas was made 

 at 4.95c. basis, and 5,800 bags Porto Ricos at 4.89c.; on the 9th July, 10,000 bags Porto Ricos 

 sold at 4.83c.; July 12th, 20,000 bags Cubas at 4.86c. basis, and 9,000 bags Porto Ricos at 

 4.83c. 



The next business was on 19th of July when 400-500,000 bags Cubas and Porto Ricos for 

 August shipment were taken by refiners at 3%c. c & f 4.89c. duty paid. 



Up to this time the market had continued to remain quite steady, and still continued nomi- 

 nally unchanged with an increasing tendency to sell at lower prices, until on the 29th sales 

 resulted of 100,000 bags Cubas at a decline to 3%c. c & f, 4.64c. duty paid. 



Absence of demand for several days i>roduced a depressing effect and the market again de- 

 clined on August 5th to 33 2^. c & f, 4.52c. duty paid, on sales of 100,000 bags of Cubas, last 

 half August shipment. 



Two causes are specially given for the tiu-n in the market to the declining tendency thus 

 early in the season. 



The demand for the refined product throughout the country fell off to miexpected dimen- 

 sions, and though this was largely offset by the foreign demand for exportation, still it had 

 its influence. A rather serious liquidation of future contracts on the Sugar Exchange also had 

 its effect. The arbitrage business on the Exchange, that is, the buying of Cuba sugar for 

 early arrival, and selling against it at prices for future months' deliveries, which gave the go- 

 betweens a fair profit, advanced the futures above spot prices. On July 1st as high as 4.00c. 

 per lb. for August and 4.09c. per lb. for September. Such prices had been obtained by the 

 belief that the Cuba Crop would turn out much less than last year. 



When it became evident that the crop was likely to reach to near the estunate that Willett 

 & Gray had placed upon it, 2,600,000 tons, the desire to liquidate the futures caused a semi- 

 panic for a few days, and August contracts declined imder pressure to 3.50c. per lb., and Sep-- 

 tember to 3.25c. per lb. 



It is quite likely the prices for actual sugar will now steady at around basis of 33^9^ c & f, 4.52c. 

 duty paid, provided that Culmn sellers do not imduly press their holdings in advance of needed 

 requirements. 



The visible Cuba crop is coming nearer to last year's total, being now 43,311 tons of same, and 

 with a larger number of Centrals at work than in the two previous years. 



The United States Domestic Beet Crop is also having an influence on the cane refined 

 business earlier than usual by reason of the new crop production having ah-eady begun and been 

 put on the market. 



Cane refined has now declmed from selling basis of 6.00c. less 2' c to selling basis today of 

 5.60c. less 2% with only a hand to mouth demand. 



As a whole the sugar outlook for the remainder of the campaign year is towards a downward 

 trend, unless an unexpected increase of buying for both Cuba raws and United States refined- 

 is experienced from Europe. 



WILLETT & GRAY. 



New York, August 5th, 1915. 



