THECUB A REVIEW 31 



SUGAR REVIEW 



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



Our last Sugar Review for this magazine was dated September 16, 1914. 



At that time Centrifugal Sugar 96° test was quoted at 5c. per lb. cost and freight and 

 6.02c. per lb. duty paid, and at this writing it is 4c. per lb. cost and freight and 5.02c. per lb. 

 duty paid, which quotations are however nominal in the absence of business and with sellers 

 disposed to accept offers if made by the refiners at 3^4C. c & f, or 4.77c. duty paid. 



The decline from oc. c & i to 4c. c & f was almost as rapid as the advance in earlj- August, 

 and was caused by the realization on the part of the holders of sugar for higher prices that the 

 expected short supply period in October was not likely to materiahze, and hence the desire 

 to secure such profits as remained on low cost sugar, and reducing of loss on high cost sugar. 



The present time finds the domestic beet and cane crops coming to market and giving 

 abundant supplies for consumption up to the harvesting of the new Cuba crop in December 

 and onward. 



What is of special interest to your readers is no doubt the prospects attending the marketing 

 of the coming crop, and the price likely to be obtained for the same. 



Cuba just now occupies a quite unprecedented position in the sugar world, and the prices 

 obtainable for the crop are largely in the hands of the painters themselves, but it is also quite 

 evident that these j^rices will depend more or less largely in the view of the planters, as to 

 the length of time the European war is to continue. If all planters agreed that the war will 

 last bej^ond the sunnner of 1915, then the price would rule higher, but a certain proportion 

 of the planters will no doubt consider the war of shorter duration, and will wish to secure 

 their profits on the sugar as fast as produced. This will make an important difference in 

 the average prices obtained for the crop, as a whole. 



Another point of interest to your readers is as to whether the demand for the crop is to 

 be urgent or otherwise according to the necessities of Great Britain and the United States, 

 the countries principally interested in obtaining Cuban sugar, although France with its small 

 crop may also participate to some extent. 



The European beet crops, wdiether large or small, are effectually bottled up from use by 

 either the United States or Great Britain. 



Great Britain, in the campaign year September 1, 1912-1913, imported 1,606,611 tons 

 of beet sugar. Up to August 1, 1914, the United Kingdom imported 1,334,748 tons of beet 

 sugar, but since Augu.st 1st practically none. Great Britain is evidently shut out of 1,500,000 

 tons of its usual importation from beet growing countries, and must look to other sources 

 of supplies for a similar amount for consumption. These sources open to her are all cane- 

 producing countries, say Cuba, Java, ^Mauritius Demerara, British West Indies, Peru and 

 Brazil. 



Great Britain has already bought in these countries an estimated supply from their new 

 crops sufficient to meet her suppUes to next April or May, with exception of a certain amount 

 of refined sugar required from the United States over and above the capacity of her refineries 

 to manufacture. 



But, inasmuch as the German cruisers are in the Indian Ocean, and have already seized 

 one or more cargoes of Java sugar bound for England, then are the Java supplies of 500,000 

 to 600,000 tons still in doubt for consumption in England. 



The poUcy of Great Britain is to place a maximum price on sugar to its consumers, which 

 materially limits the price that can be paid for Cuba or other sugars. 



The United States on the other hand has no such regulation of prices, which will rise and 

 fall by amount of supply and demand, and hence can compete to better advantage. Or rather 

 the limitations which Great Britain can pay may be to the United States' advantage in 

 prices which the United States will pay in competition. 



With Great Britain out of competition for cane Cuban sugars, having ah-eady secured 

 several hundred thousand tons of .such for January-March delivery at prices of 3.80c. to 

 4.00c. f. o. b., it is quite within expectations that early purchases requii-ed by United States 

 refiners from Cuba may be made at not higher, and very likely at a little less f. o. b. prices 

 than Great Britain has paid. 



Afterwards, on prolongation of war bringing Great Britain again into competition, the Cuban 

 value will undoubtedly advance to an extent governed mainly, as already said, by the personal 

 opinions of the planters as to the probable diu-ation of the war. 



All European countries have or will forbid the exportations of their present sugar crops, 

 reserving the same for their own consumption over the year, and planting next spring grain 

 crops instead of sugar. This course will, no doubt, mean a time of high or highest sugar prices 

 during the second half of 1915, with or without war at that time. 



Some relief to high prices will come in the fall of 1915 from the expectation that the domestic 

 beet and cane crops of the United States will be larger than the present crop. Abundant 

 beet seed has been secured for fall plantings next spring, provided the seed alreadj' bought in 

 Europe for shipment from Amsterdam can be protected in its passage across the ocean in 

 neutral vessels. 



