32 THE CUBA REVIEW. 



ANNUAL CUBAN SUGAR REVIEW. 



Specially written for The CUBA REVIEW by Willett & Gray, of New York. 



Looking over the conditions of the sugar trade of the world during 1907 and 

 drawing conclusions from the same we are -met with several important features 

 somewhat surprising. 



For instance, the Cuba crop of 1906-07 reached 1,427,673 tons, or 248,924 tons 

 in excess of the 1,178,749 tons crop of 1905-06. Now, the estimate of the crop for 

 1907-08 hangs around 1,000,000 tons, or 427,673 tons less than last year. Variations 

 in the Cuba crop in three years of increases of 248,924 tons and decrease of 427,673 

 tons, develop an irregularity in that crop from year to year which is surprising 

 It is surprising to say the least that conditions in an island like Cuba can cause a 

 variation of crops to the extent of over 400,000 tons in a crop of a little over a 

 million tons average. Such variations in crops cause surprising results, also, in the 

 United States. 



The crop of 1905-06 left 535,870 tons of full duty sugars to be imported to meet 

 the consumption. The larger crop of 1906-07 red'uced this requirement of full duty 

 sugars to 355,297 tons. This small crop of 1907-08 will again increase requirements 

 of full duty sugars to above 600,000 tons. 



It is little wonder that the crops of Cuba from year to year become of great 

 concern in Europe and form the basis for active speculation in the European sugar 

 exchanges during the months fram February to October. 



Early in the Cuba harvesting, Europe has come to look upon the Cuba crop 

 as sold much below its normal value and waits until the early necessities of 

 planters are supplied by sales of a portion of their crop to the United States refiners. 

 Then, when Cuba begins to ask an advance, Europe begins to take notice and is 

 eager for estimates of the amount of full duty sugars they will be called upon to 

 supply and beet sugar quotations rise or fall accordingly. 



Under the large Cuba crop last year and small requirements of full duty sugar, 

 the exchange contract business in Europe did not d'o well, but with the small crop 

 now gathering in Cuba, the excitement of speculation increases and the value of 

 full duty-paying sugar is advancing by leaps and bounds and the year 1908 will long 

 be remembered as the exceptional year of high prices for sugar, which would have 

 come in 1907 but for the surprisingly large jump in the size of the Cuba crop that 

 year. 



As a result of that large crop the average value of 96 test centrifugals in New 

 York for 1907 was 3.756c. per pound duty paid against 3.686c. per pound for 1906. 

 On the other hand, as a result of the great reaction in crop record for this year, 

 Cuba centrifugals after the usual abnormal opening down to 2 5-i6c. c & f 96 test 

 (3.67c. duty paid) have already in March risen to 2^c. c & f equal to 4.24c. duty 

 paid on sales in Cuba, with no limitation to the rise yet in sight. 



If the advantage given to Cuba by reciprocity could be availed of during the 

 entire crop season, it would imake a vast difference in the' prosperity of the island 

 in such a crop year as the present. A small crop and forced sales so far below 

 the parity of values for so much of the crop has not left the island rnuch, if any, 

 better off than before. A remarkable opportunity has not been taken advantage of, 

 unfortunately, and for reasons perhaps beyond the Cuban planters' control. It 

 takes money to secure and hold crops for a market at full value. Cuban planters 

 are still borrowers and hence not their own masters in disposal of crop. Brazil 

 planters, on the contrary, have had a series of years of remarkable prices for sugar 

 sold South until they are now lenders of money in the crop season instead of 

 borrowers. Cuban planters must look forward to the same conditions and work to 

 bring them about. With only a million tons of sugar to market, it seems absurd 

 that lack of capital should compel yearly sacrifice of a good portion of crop at or 

 near %c. per pound below its parity value with European beet sugar. 



Or, to make the case plainer, how is it that with 6,000,000 tons of beet sugar 

 to market the Europeans can maintain prices 5^c. per pound above Cuba for several 

 months while Cuba is sacrificing its profits? The proper marketing of the Cuba 

 crop is the most important feature of the past, the present and the coming years, 

 and hence we call especial attention to it in this review. 



As regards the markets the improving tendency which began after Cuba had 

 sold several hund'red thousand tons of crop at a heavy, sacrifice, has continued to 

 grow under diminishing crop estimates until at this writing in March 96 test 

 centrifugals are 4.06c. on the spot and are held at 2^c. per pound c & f, equal to 

 4.24c. duty paid for April shipment, and European beet sugar is los. loj^d. per 



