TH E CUB A RE VI EW 35 



Sugar Review 



specially written for the Cuba Review by Willett & Gray, New York, N. Y. 



Our last review was dated January 15, 1923, and at that time Cuban sugars were 

 quoted at 3 9/1 6c. c. & f. We made remark in our last report that refiners had not 

 secured a supply of raw sugars, and, strangely, they did not take advantage of the 

 decline from 3%c. to Zyic. c. & f. which was touched on January 20th. However, at 

 2>%.c. c. & f. the demand for refined sugar was sufficient to cause an increased demand 

 for raw sugars and this demand was felt generally throughout the Atlantic ports, as well 

 as the other refining centers and, hence, put all refiners in the market as buyers of 

 raw sugar. This caused a series of advances, which were more or less rapid, and on 

 January 31st 33^c. c. & f was reached. February 1st 3^'^c. c. & f., February 2d Zy^c. 

 c. & f., February 7th ojic. c. & f., and February 8th 4c. c. & f. While the latter quota- 

 tion was paid for prompt sugars, 4^c. c. & f. was paid for sugars some distance off. 



All the normal conditions of the market were then radically changed, owing to the 

 issuance of a statement by the Department of Commerce which was sent broadcast 

 throughout the United States, under misleading headlines, that the sugar supplies of 

 the world were not sufficient for the indicated consumption. This caused a wild and ex- 

 cited market, particularly on the New York Sugar Exchange, and fluctuations were made 

 as much as Ic. a pound a day, the limit allowed by the Exchange rules. This state- 

 ment given out by the Department of Commerce was severely criticized throughout the 

 Trade, as the Department had expressed opinions on subjects which they could not 

 possibly know anything about, such as the possible sugar consumption of the world 

 for the next ten or twelve months. They have no facilities for finding out this informa- 

 tion and it is a matter that very few of the best posted people of the Sugar Trade care 

 to express an opinion upon. 



However, the damage was done, and as refined buyers throughout the country 

 read this remarkable statement they naturally commenced to buy refined sugars quite 

 actively, and this necessitated refiners purchasing Cuban raw sugars. Sales were made 

 to this class of buyers on the 14th of February' at 4^c. c. & f., followed by rapid 

 advances until 5^c. c. & f. was touched. At this point, speculation was checked and 

 declines set in. In the meantime, speculators paid considerably higher prices than 

 refiners were willing to entertain, as on February 10th speculators paid 4 7/1 6c. c. & f., 

 against the previous day's price of 4c. c. & f., and on Tuesday, the 13th, the next sales 

 to speculators, after the 4 7/1 6c. c. & f. basis previously mentioned, were made at 

 Sykc, Sy^c. and 5 7/1 6c. c. & f. The above has been the main features of the month 

 under review, but naturally the advances here influenced sugar conditions throughout the 

 whole world, and corresponding activity and increasing prices were reported in the 

 important sugar producing countries of the world. 



As we write Cuban sugars for prompt shipment have been sold to refiners at 4%c. 

 c. & f. 



With the wild and excited raw market, refiners could do nothing more than with- 

 draw from the market as sellers of refined awaiting a quieting down of conditions, but 

 occasionally they entered the market at refined prices based on the prevailing cost of 

 raws and this, of course, necessitated continually advancing prices in refined sugar until 

 9.00c. less 2 per cent, was touched. At this point the demand for refined was checked 

 and many buyers of refined sugar who had purchased sugars at much cheaper prices 

 commenced reselling. This unsettled the refined market somewhat, so that at this 

 writing two refiners are quoting 8.25c. less 2 per cent. 



New York, N. Y., February 27, 1923. 



