30 THECUBAREVIEW 



SUGAR REVIEW 



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



DECLINE IN PRICES — LARGE ESTIMATE OF COMING EUROPEAN BEET CROP 

 — WILL INCREASE CONSUMPTION 



Our last sugar review for this mayazine was dated Septemljer 9, 1010. 



At tliat date centrifugal sugars, iifi test, were quoted at 3c. per pound c. & f., equal to 

 4.36c. per pound landed. To-day's valuation is 2.54c. c. & f., equal to 3.9()c. per pound 

 landed. These quotations show an unusually large and rapid decline over a single 

 month's time. In fact, the progress downward was represented by a single sale at each 

 step, starting from 4.3Cc., the ne.xt sale was at 4.24c., the next at 4.1Sc.. the next at 4. lie, 

 the next at 4.05c., the next at 4c., and the next at 3.'.)."c. per pound. At this point, how- 

 ever, several purchases were made by refiners, and a recovery was obtained to 4c. per 

 pound, temporarily. Only one refiner bought at this price, and the next sale was at 3.95c., 

 followed at the close by two sales of 19.000 bags, together, at 3.90c. per pound, at which 

 the market closes, but with the decline apparently not yet stopped. 



Of course, between now and the beginning of the next Cuba crf)p in December, a 

 further decline to the usual normal value of first deliveries of that crop will be made. 

 Such price for early sales in view of the unusually large crops of the new campaign 

 will be at as low a point probably as for any preceding crop, say between 2^!^ and 2Vic. 

 c. & f. 96 test basis. Cubas for January-February shipment are offering at 2%c. c. & f. 



It is not to be expected, however, that such opening prices of new crop sugars will 

 be reached, except by gradual decline from present market values. On the other hand. 

 in view of all prevailing conditions, at home and abroad, it is scarcely to be expected 

 that any marked improvement from present values will be made during the short time 

 intervening before new crop sugars become available. Thus much relates to our local 

 market and such quotations as given herewith could only have resulted from a demoral- 

 ized and panicky condition of the European beet and cane sugar market, extending over 

 the same length of time. 



Beet sugar on September 9, 1910, was at 12s. 4M.'d. for that month, lis. 6%d. for Oc- 

 tober, and lis. 8%d. for May. Java sugars, 13s. From these quotations the markets 

 began, on September 15th. to settle rapidly, touching lis. 10 %d. for September on the 

 19th, 10s. 9d. for October, and lis. for May, with Javas at 12s. 6d. There was only a 

 slight rally for one day ; the rapid decline began again, without rallies until 10s. was 

 touched on September 30th, and lis. 3d. for Javas, with a few days of steadiness at or 

 about 10s., the market again broke to their lowest point at the close to-day, at 9s. 6%d. 

 (equal to 4c. per pound landed) for October and November beet and 9s. 10^/>d. (4.07c.) 

 for May beet, with Javas 10s. fid. (3.R7c.), with no indication of the decline being at 

 an end. 



Several cargoes of Java sugars arrived during the month, and met the losses down to 

 3.95c. per pound for the last sale of these sugars, but nothing above the London quota- 

 tion equivalent of 3.R7c. could probably be had now for the next arrival. 



The immediate cause of the European decline and panic was the scare given the hold- 

 ers of sugar by the unexpectedly large estimates made by the beet sugar experts of tbe 

 coming European beet crop, showing over a million tons' increase from the last cam- 

 paign. Xo market could stand up under such anticipations, and, if we consider that the 

 Cuba crop may prove as large as the preceding crop, there is but little encouragement 

 to look for any other result than a lower range of prices for sugar generally during 

 the coming campaign year. Such low prices however must tend to increase consumption 

 both at home and abroad and thus procure a market for whatever sugar may be pro- 

 duced in the world. 



There remain now for sale 31.50S tons of stored sugars and 30,000 tons of Cuba stock 

 still to be shipped. 



F. O. Licht's preliminary estimate of the .growing European leet crop is 7.025,000 tons 

 and Otto Licht's latest estimate is 7.350.000 tons. 



Refined granulated was sustained at 5.1.Jc. less 1 per cent for the greater part of 



