T H E C U B A R E V 1 E W 35 



SUGAR REVIEW 



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



Our last review for this magazine was dated May 6, 1914. 



At that date, Cuba Centrifugals of 96° test were quoted at 2 l/16c. per lb. duty paid, 

 the difference between raws and refined being 0.-703c. per lb. 



At the present time, Cuba Centrifugals are 2 3/8c. c & f and 3.39c. per lb. duty paid, the 

 difference being 0.726c. per lb. to cover cost of refining and profit. 



From the extreme rise to 3.39c. per lb. on May 26th, a natural reaction came to 3.29c. 

 per lb. on June 5th. 



The renewal of the upward trend seems perfectly legitimate, and should be continued to 

 some extent. 



Any very large advance cannot, however, be looked for this season, in view of the fact 

 that our market and Cuba have not and do not now receive any encouragement from the 

 European situation. 



It is evident that Cuba and the United States will continue to fix the world's price for the 

 present at least, instead of sugar values for the crops of the world being fixed at Hamburg. 



Even Java is coming to recognize this, and in an apparent over-supply of her crop for the 

 far Eastern market, in competition with Cuba, she is now making approximate figures at 

 which hei- Java sugars can come to the United States. 



Sellers already intimate disposition to enter our market, at the basis of lO.s. 3f/. cost, insur- 

 ance, and freight landed at New York at 3.53c. per lb. full duty paid. These are for July- 

 August shipments, due to arrive here in September-October, when, generally, our market 

 makes its highest quotations if our supplies run low at that time, as they usually do, and 

 very likely will this year by our recent exhibit of estimated supplies and demand, which is 

 enclosed herewith. This 3.53c. per lb. cost of Javas is below European beet sugar parity at 

 New York for August quotation, which is 3.60c. per lb. 



Thus it appears possible that Java may renew shipments to the ITnited Kingdom and to the 

 United States, which have been interrupted for two years by ignoring Hamburg parities 

 and accepting Cuban parity. 



The United States market is now J^c. per lb. below the Hamburg parity, and hence the 

 way is clear for about that much rise in Cuba sugar values. This J^c. difference may be 

 increased by unfavorable reports as to the European beet crop, and is not likely to be decreased, 

 as the price is very near the cost of production of the coming beet crop. 



We mention this as in our opinion the chief new notable feature of the whole sugar outlook. 



The United States domestic cane and beet crops, which mature in July to December, are 

 both to be considerably less in tons than last year, and, independent of other circumstances, 

 these deficiencies would tend to establish higher prices towards end of season, and we expect 

 to see moderately higher prices from now on. 



All reports relating to the European beet crops are very favorable, as also are the weather 

 reports from other countries^Porto Rico, Hawaii and the Philippines. 



The Cuba crop is having a fairly extended grinding season, sufficient to bring the total up 

 to the recent estimate, or a minimum of 2,500,000 tons. 



The demand for the refined product in the United States is going on satisfactory, and is 

 likel}' to increase very considerably, under the large demand for the fruit season. 



Refiners have been at a disadvantage in having all recent deliveries go to the country 

 under contract made some time ago at prices under present values. 



Present quotations for fine granulated are 4.30c. less 2%, and all refiners have now stopped 

 accepting contract orders for indefinite delays, which places the business on a better basis. 



As we write, the raw sugar quotation is advanced to the former high mark of the campaign 

 thus far (3.39c., by purchases making today, and the market closes strong. 



New York, June 13, 1914. 



Willett & Gray. 



A STORY DENIED contemplation and that the whole story is 



r, PI , ,. , untrue. 



Rumors oi the sale of the sugar mgenios 



''Isabel," "Soledad" and "Las Caiias," all $10,000,000 INCREASE 



owned by the Guantanamo Sugar Co., and The Cuba Railroad Company filed a 



The Guantanamo and Western Raih'oad, to certificate with the Secretary- of State at 



the Chaparra Sugar Co., crop up from time Trenton, New Jersey, June 4th, increasing 



to time. A recent issue of La Liicha contained its capital stock from !f 20,000, 000 to $30,000,- 



a very detailed story of the approaching sale 000. The new issue is divided into $10,000,000 



which was soon to be consummated. It may of preferred stock and $20,000,000 of common 



be asserted on the authority of Mr. M. H. stock. 



Lewis, president of The Guantanamo and The necessary consent of the stockholders 



Western Railroad, who was seen at his office to the increase was attached to the certificate, 



in New York by a Cuba Review representa- headed by Sir William C. VanHorneand Sir. 



tive, that no such sale or i)urchase is in Thomas G. Shaughncssy. 



