THE CUBA REVIEW 33 



SUGAR REVIEW 



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



Our last sugar review for this magazine was dated October 13, 1914. 



At that time centrifugal sugar, 96° test, was quoted at 3^^c. per lb. cost and freight New 

 York, and 4.51c. per lb. duty paid. 



The dechne had been very rapid, from 5J^c. to 3 J^c, and on a very small amount of business, 

 as buyers were mostly withdrawn and sellers were persistent in their desire to sell at best 

 price available. 



The dechne kept right on under the same conditions between buyers and sellers. On 

 October 16th the quotation was 3 3/8 c & f, 4.39c. duty paid; October 21st, 334c. c & f, 4.26c. 



- - <ovember 



9th to 3.00c. c & f, 4.01c. duty paid. To-day 3 l/16c. c & f was paid for spot sugars. The 

 decline below 3Mc. c & f was mostly caused by Great Britain prohibiting importation of 

 all sugar not contracted for previous to August 4th, or shipped from export countries on 

 or before October 26th. 



This action cut off the demand for refined from the United Kingdom and some sugars 

 shipped after October 26th to the United Kingdom must go forward to France under the 

 recent demand from that countr3\ 



When the decline in refined sugar was at 5c. less 2%, and 3.60c. to 3.S0c. per lb. net cash 

 in bond f.o.b., New York, the French Government and private buyers entered the market 

 and have taken some 60,000 tons gi-anulated for direct shipment to France. The necessity 

 of our refiners for raw sugar to meet this demand stopped the dechne in raw sugar and advanced 

 centrifugals from 2>^c. to 3.00c. per lb. c & f , New York, placing the market again on a fairly 

 normal basis of values. 



This changed condition of the market, introducing more activity with buyers and sellers 

 has also produced an interest in new crop Cubas, and sales of some 70,000 bags January- 

 March dehveries have been made the last few days at 3c. per lb. f.o.b. Cuba, equal to 3 1/Sc. 

 per lb. c & f, New York. Foreign merchants are the buyers on speculation for resale here' 

 the shipment to the United Kingdom being prohibited. ' 



France is still in the market for more refined sugars and hence is an element for consideration 

 in its demand for the future. We inchne to look upon its demand as for immediate needs 

 rather than for the futm-e of 1915, although the pressure of the demand indicates a smaller 

 French crop eventuaUy secured than oui- estimate. The French stock of sugar on September 

 30th was 104,000 tons. 



We estimate the French crop now harvesting at 350,000 tons. The 60,000 tons refined 

 just bought give apparent supphes of 514,000 tons. France usually receives 100,000 tons 

 sugar from its colonies, which is mostly refined for exports from France, but which is hkely 

 to be retained in the country in 1915 for home use. The consumption of sugar in France 

 was 644,015 tons in 1911-12, and 703,126 tons in 1912-13. If the reduced consumption 

 of France should be 600,000 tons in 1914-15, the above amounts would be about sufficient 

 for actual wants, but another 100,000 tons wiU be required for carrying stocks. France 

 will evidently take advantage of the favorable conditions and lower prices than her local 

 crop will cost to secure further supplies from the United States, Cuba and Java. It is im- 

 possible to say for how long the British prohibition against imports will continue, but probably 

 up to near the time when its high cost piu-chases are due to be consumed at the maximum 

 limitations, which are considerably above what new purchases can be made at from both 

 the United States and Cuba, say about May 1st. The British Government now places the 

 maximum price that British refiners can charge at 6c. per lb., and the maximum that retailers 

 can charge consumers 7c. per lb. for granulated. 



American gi-anulated can be had in Great Britain at lower prices and the prohibition is 

 evidently intended to protect the British Government from loss on the large purchases made 

 at about 4c. f.o.b. basis for 96 test sugars dm-ing the early war excitement. 



Om- domestic beet refined crop had much also to do with the rapid dechne after October 

 1st, when it came to the market freely and was sold to some extent in New York City on 

 direct imports from Cahfornia via Panama Canal. 



Lately, these domestic beet sugars have been somewhat withdraisTi from our eastern markets 

 and better prices may be obtained a little later on. 



There is little doubt but that the entire Cuba crop will be marketed on a rising trend of 

 prices, after the opening production is disposed of. Next year, 1915, should prove quite 

 satisfactory to all sugar interests, producers, refiners, jobbers and retailers, and without 

 extreme high prices to consumers. 



First piu-chases of new crop Cubas by our refiners were made on Friday of last week at 

 2 7/8c. c & f for 20,000 bags and possibly 10,000 bags more. 



