34 THE CUBA REVIEW 



Sugar Review 



specially written for THE CUBA REVIEW by Willett & Gray, New York, N. Y. 



I 



Our last report was dated June 26, 1923. Since that time we have had a very 

 unsatisfactory market, from sellers' point of view. The liquidation referred to in our 

 last letter has continued, particularly for September deliveries on the Exchange, and 

 prices have declined quite materially. From S^c. c. & f. basis during the latter part of 

 June, the market declined to 5^c. and then to 5j^c. c. & f., and then a sharp decline 

 occurred on the 10th of July to 4%c. c. & f. This price appeared attractive to buyers 

 and efforts were made by several refiners to obtain raw sugars at this price. At no time, 

 however, was any important quantity of Cubas offered and only occasional lots were 

 traded in. In the meantime, an improved demand for refined sugar set in and this neces- 

 sitated buyers re-entering the market for raws. Not being able to obtain sugars at the 

 4^4c. c. & f. basis, they increased their bids to 5c. c. & f. Even at this advance of %c. 

 a pound, sellers of Cubas did not show a disposition to offer freely, so buyers then 

 increased their bids to 5;^c. c. & f., after obtaining insignificant lots at 534c. c. & f. 



Quite a large business developed at the 5^c. c. & f. basis, sales totaling 40/50,000 

 tons and including Cubas, as well as Porto Ricos and Philippines at the duty paid equiva- 

 lent. It was expected that the market would remain about steady at Sj^c. c. & f. after the 

 fairly large purchases made at this price, but profit taking on the Sugar Exchange reduced 

 the price of September delivery 30 points and this allowed operators to offer sugars at 

 prices below SViC, which led to a reaction to 534c. c. & f. 



About this time severe competition in the selling of refined sugar caused an unsettled 

 market in refined, the Federal Sugar Refining Co. stating, that in order to meet competi- 

 tion they were compelled to reduce their price to 8.35c. compared with 8.75c. to 8.85c. 

 previously. This unsettled condition in refined sugar had an unfavorable effect on raws, 

 and it was found impossible to maintain the 534c. c. & f. basis for Cubas and the market 

 then declined to 53''8C. c. & f. At this writing there seems to be some resistance on the 

 part of Cuban sellers to offer sugars at the 53^c. c. & f. basis and, hence, the market has 

 a steady appearance. 



We have made a careful analysis of the statistical position and from this viewpoint it 

 appears to us as if the market should show an improvement. There is only about enough 

 sugar available to take care of a normal consumption and a moderate export business, 

 and any increase over this normal figure for the American demand, or for Europe, 

 should tend to decrease the necessary supplies. As usual with us at this time of the 

 year, we published a table of the indicated U. S. consumption for the first six months, 

 and as we think this will be interesting to your readers, we attach the article herewith. 



Indicated U. S. Sugar Consumption First Six Months. — As usual at this time, we 

 present herewith our compilation of the indicated consumption of sugar in the United 

 States during the first half of 1923, compared with 1922. As we have before remarked, 

 these figures, while being close valuations, must be accepted with the usual stipulations, 

 which are that it is very seldom that the consumption of the last half of the year is equal 

 to that of the first half. While some people at first thought may tend to dispute this 

 statement as regards 1923, yet about the only point in which 1923 differs from other 

 years is that the "invisibles" are in the hands of the refiners this year, whereas they are 

 usually in the possession of the wholesale and retail grocers. 



Indicated U. S. Sugar Consumption First Six Months 



1923 1922 



Tons Tons 



All U. S. Refining ports, Meltings and Deliveries, refined value 2,355,417 2,657,351 



Louisiana crop consumed, less accounted for in above figure 39,990 71,380 



Domestic Beet consumed 377,984 602,487 



Total 2,773,391 3,331,218 



