28 THE CUBA RE\'IE\V And Bulletin. 



standard crates should be used, a light flimsy package being dear al any price, bome 

 very ftne stock has sold at litile or nothing this season because the shipper saved a 

 littfe by buying a light-weight weak crate, which did not stand the trip, and arrived 

 here in a more or less crushed and broken conditioti. Such a policy is "penny wise 

 and pound foolish." 



New York, June 6. 1907. 



SUGAR IN MAY. 



Accompanied by Charts Showing Beet Sugar and Centrifugal Sugar Prices.— How 

 Bring Better Results for Cuba Sugars. 



Speclall.v written for Tlie CUB.V KKVIEW li.v Willctt & Gra.v, of New York. 



In connection with the tables printed in this issue of The Cub.\ Review on the 

 course of sugar prices for eight months of the present campaign, we desire to call 

 the careful aUention of Cuba planters to a few things which these figures show and 

 prove and to the remedy that can be applied to bring better results for Cuba sugars. 



At the opening of the beet sugar campaign in October, beet sugar was quoted 

 at OS 3^d f o. b. Hamburg (parity of 3-95c. for 96 test Centrifugals duty paid, at 

 New York) from which point the setting of the beet crop at the height of the season 

 carried quotations down to 8s. 7^/^d- (parity of 3.80c.) late in October and again m 

 January, after which a steady advance continued until May, when los. •)4d. was reached 

 (parity of 412c.) . , , , 



The total decline in beet sugar was equivalent to but .15c. per pound. 



Compare this with the course of values of Cuba centrifugals during the same 

 period, and especially during the height of the Cuba crop season, and note the remarkable 

 adverse action of tlie markets for cane sugar, as compared with beei sugar. 



In October, 1906. cane declined from 4c. per pound only to 3.81c. in November 

 under the marketing of the new beet crop, but in December, immediately on the 

 beo-inning of the Cuba crop season, and quite independently of the beet crop, a rapid 

 decline set in from 3.875c. per pound for 96 test centrifugals, which did not stop 

 until 3.38c. per pound was reached, a full decline of Vjc. per pound against a decline 

 of only about Vsc. per pound in the European beet crop, the quotations for the latter 

 being all the time so far above the parity of cane sugar as to have no influence whatever 

 in causing the decline in cane. 



Therefore, the reason of the great decline in cane sugar must be looked for at 

 home and in Cuba itself by a comparison of the different prevailing methods of handling 

 the crops in the two countries. 



When European beets reached their low point of 8s. 7^d. they were at or below 

 the cost of production. At this point a- general indisposition was shown to follow 

 the market lower, and of so pronounced a nature that no artificial support was necessary 

 to maintain the value there, notwithstanding that Cuba v.^as daily going lower and 

 lower in its parity with beets. From this it is evident that conditions exist in Europe 

 which prevent the necessity of selling the crop at certain seasons regardless of real value. 



In Cuba, however, the' conditions are quite opposite, and at certain seasons pressure 

 is exerted to sell without regard to actual values. Looking backwards it is quite plain 

 from these tables that the proper low point for selling the Cuba crop was reached 

 when beet sugar touched 8s. 7^d. (parity 3.80c. per pound), and still the selling 

 continued until 3.38c. per pound was reached, and a large proportion of the crop had 

 been sold. Was it lack of money to carry the crop until wanted or was it lack of 

 storage facilities that forced the selling so- far below the dead line? The premature 

 selling caused the planters to realize .20c. per pound less or, sa3% an estimated total of 

 $3,000,000 on the portion of the crop sold before prices rose again to near the normal 

 line. Whatever was the cause, it is well for us to call this special attention to the 

 facts of the market as shown by these tables for the express purpose of seeing if 

 similar unfair conditions may not be avoided with the coming crop. 



The previous campaign of i905-'o6, by the figures also given herewith, shows a 

 similar discrepancy in values of cane and beet sugar, though not to the same extent. 

 It will be a special misfortune if Cuba has to submit to similar deficiencies in securing 

 the profits which belong to her for the third crop season. 



Cuba should take time by the forelock and prepare now in advance with methods 

 to secure more satisfactory returns from the next campaign. 



May has been a month of well sustained prices at fairly near the parity of Europe, 

 and the planter who has crop still in reserve has no cause for complaint. The outlook 

 for the remaining months of this campaign is. also, quite favorable for some continued 

 improvement from time to time, after a possible slight reaction early in June. 



The refined sugar market in May has been under the influence of very unseason- 

 able weather, which must have restricted consumption to some extent,' although prices 

 have been fully maintained and are likely to follow the course of raws and ultimately 

 reach a higher level of prices when the heavy summer demand for consumption sets in. 



