3U THECUBAREVIEVV 



SUGAR REVIEW. 



Specially written for THE CUBA RE\"IE\V by Wilktt & Gray, New York. 



Our last review for this magazine was dated Nov. 4, 1909. 



At that time. Centrifugals were quoted at 4.30c. per lb. 



During November the price advanced to 4.45c. per lb. and declined to 4.36c. per lb., 

 followed during the si.x days in December by further decline to 4.31 J/^c. per lb., at which 

 price the market closes. 



The strong market shown bj' these quctations was largely owing to the extreme 

 scarcity of available sugars for the United States at prices usually existing below the 

 parity of the European markets, so that refiners in actual need of sugar for immediate 

 use were cotnpelled to pay up to the parity of Europeon markets fc • their small supplies. 

 In this way he European holders of Java and Cuba Centrifugal sugars in store here were 

 enabled to secure the parity prices of their home markets, and they availed of this 

 condition to market all of their holdings with the exception of 3,350 tons, which they 

 still control in warehouse here and, for which it would seem they have overstayed their 

 market, as the beginning of the Cuba crop sason, together with sugars available from 

 Louisiana, will now afford sufficient supplies at the usual normal difference below the 

 parity of Europe. 



Europe carried on its speculation right up to the opening of the Cuba crop, beet 

 sugars reaching at the highest point 12s. 9d. per cwt., f.o.b. Hamburg, and sustaining, 

 thus far, only a very slight reaction to 12s. Zj-^d. for prompt and ne.xt month, and 12s. 

 9^d. for IMay, against 13s. for May at the opening of December. 



All recent reports relating to the European beet crop have favored the European 

 speculation for higher prices, and it is quite possible that the opening of the Cuba crop 

 may cause but a temporary check in the movement, for there seems to be sufficient 

 money and power and motive behind the operators to carry forward their intentions re- 

 gardless of whatever influence the larger Cuba crop can exert. In other words, Europe 

 is now under the control of expectations of decreasing beet root crops in Europe rather 

 than of increasing crops in Cuba. Also, Europe has not confined itself to speculation in 

 beet futures, but is, also, at present very largely interested in Cuba sugars bought for 

 January, February and March deliveries up to as high as 2^4c. c. & f. 96 test basis and, 

 in instances, l-32c. higher has been paid for February deliver}'. 



Inasmuch as February and March should prove large producers of the Cuba crop, 

 it would seem that a check to the advance is likely with a profitable reaction of l-16c. 

 per lb. when those deliveries become available. For the long run, however, reactions of 

 l-16c., or even %c.. per lb. are likely to be overcome by reason of the unusual strength 

 of the whole statistical position of the sugar markets of the world. For, taking these all 

 into account, the available supplies of sugar for the present campaign appear somewhat 

 inadequate to the demands for consumption, should the normal increase of consumption 

 remain unchanged. Outside of Cuba, the crops of the world of cane sugars do not 

 show material changes from last year and have no particular influence. 



Generally, when conditions like the present exist, our United States refiners are apt 

 to limit their purchases of each month's shipments from Cuba to their requirements for 

 that month's use. In other words, it is likely that the business between Cuba and our 

 refiners may be carried on upon a closer hand-to-mouth basis than in former years, when 

 the opening purchases from the Cuba crop could be made at or near J^c. lower than 

 the present level. 



The refined sugar market in the United States continued in November as in October, 

 to be a laigely beet sugar granulated market, all the beet sugar factories in the country 

 working to their fullest capacity and selling their product as rapidlj' as the country would 

 take it, so that cane sugar refiners had a comparatively limited market for their production 

 and reduced their meltings correspondingly. The same thing should continue until the 

 new year and, in fact, the demand for cane refined is so small that refiners to-day made 

 a general reduction of 10c. per 100 lbs. in granulated at the Atlantic and Gulf ports, 

 closing prices being 5.05c. less 1% by all refiners. 



Louisiana has taken good advantage of the strong position of sugar and derived 

 unusually good profits from having the northern markets open to her at full prices by the 

 scarcity of sugars available. The new refinery in New Orleans is reported to be working 

 at about its full capacity of about 10,000 barrels refined per day, which is an important 

 fact, requiring larger purchases from Cuba, a little later on when the domestic crop is 

 exhausted. 



New York. Dec. 6. 1909. 



