T H E CUBA RE V I E JV 13 



Looking Backward Over the Past Year in 

 Cuba's Sugar Industry 



By H. 0. Neville 



We doubt very much if the short period of twelve months has ever witnessed such 

 a complete change of conditions and prospects as has occurred in Cuba's sugar industry 

 during the period under review. Our readers will remember the dire straits in which 

 our industry found itself at the commencement of the crop of 1920-1921, with its 

 tremendous carry-over of sugar in Cuba's warehouses, the almost absolute lack of credit 

 with which to make the impending crop, and prices practically the lowest in Cuba's 

 sugar history. They will remember that in early December, with sugar sales still 

 controlled by the Sugar Finance Committee, prices had dropped as low as 1 13/16 

 cents c. & f. New York, at which serious loss was being met by even the best of our 

 producers. They will remember also that immediately after the annulment of this 

 Committee on December 31st, the weakness underlying the market seemed to change 

 slightly, giving place to a mild firmness, not yet, however, attaining strength. During 

 the early months of 1922, a certain quantity of sugars either in foreign ports, afloat, 

 or shipment of which had already been contracted for, was still in control of this Com- 

 mittee, these being gradually disposed of almost always at a slight concession under 

 the market at which untrammeled sugars were disposed of. The cessation of activity 

 of the Committee seemed to convince consumers that supply and demand was once 

 more to rule in our market, and under this control prices firmed until by the end of 

 January from 2 3/16 to 2 5/16 cents c. & f. New York were being paid for our product. 

 Small fluctuations carrying sugar down at intervals to 2 1/16 cents, almost immediately 

 to take a forward spurt to 2% cents, occurred until the beginning of March, but during 

 the early days of that month, doubtless as a result of a very heavy forward movement 

 of old crop sugars, some 900,000 tons having gone out since January 1st, prices moved 

 up to as high as 2 9/16 cents. During the rest of this month, April and May, the price 

 c. & f. New York fluctuated from 2 11/32 to 2^^ cents, and not until June was this 

 price passed. In early June, however, prices had advanced to as high as 234 cents 

 c. & f., and great activity during the second week of June carried them to 3 1/16 cents, 

 though at the end of the week mentioned the 1/16 cent had been dropped, the price 

 closing at 3 cents. About this time Mr. Himely changed his estimate from the original 

 one of about 3,580,000 tons to 3,800,000 tons. Yet, notwithstanding this increase in 

 estimated supplies, prices remained firm, heavy sales being made in the latter part of 

 the month at from 3j4. cents to 3 5/16 cents, closing at 3 9/32 cents c. & f. New York. 

 Further firmness manifested itself during July, prices varying from 3ji to the high of 

 3 13/16 cents c. & f. During August the market was very inactive, only small quan- 

 tities of sugar being sold, mostly ex-store in the North, prices weakening on these small 

 transactions to a low of practically 3}i cents c. & f., picking up. however, toward the 

 end of the month to from 3}i to 3^ cents, weakening again during early September 

 to a low of 3% cents, again dropping during the week ending September 23d on a small 

 sale of 27,000 bags to 3 cents c. & f. From this point, however, on more active deal- 

 ings firmer prices prevailed, until the latter part of October witnessed relatively heavy 

 sales at 3}i cents, with small transactions at 3}i cents. During early November 3^ 

 cents for prompt delivery sugars was the price prevailing, and later on sugars of the 

 new crop for forward delivery began to be traded in at the same price for January 

 delivery, the first half of February selling at 3}i to 3}^ cents. In early December the 

 stock of old crop sugars was running very low, so that further firmness in prices was 

 witnessed, 4 cents being paid for both old and new crop sugars for December ship- 

 ment, with 3}i cents the prevailing price for sugar for shipment during the first half 

 of January, February shipments going at about 3y2 cents. Later, slight weakness devel- 

 oped in view of the rapidity with which our suear mills were commencing operations, 



