THE CUBA REVIEW And Bulletin. 27 



SUGAR IN JULY. 



Specially written for The CUBA REVIE^n- by Willett & Gray, of New York. 



The month opened with Centrifugals quoted at 3<>8C. per lb. for g6 test, and closes at 

 3 15/16C. per lb. 



Beetroot sugar in Europe opened at 9s. Qd., and closed at 9s. gd. 



In the intermediate time during the month the fluctuations were quite small and with 

 cane sugar generally upward, while beet varied from 9s. gd. to 9s 6^d. to 9s. 7^d. to 

 9s. S^d. to gs. 9d. to 9s. Sj^d. to 9s. g^d. to gs. gd. 



The business in sugars was much reduced as shown by the small receipts in the 

 United States from week to week, the first week 22,135 tons, second 14,983 tons, third 

 19,592 tons, fourth . 13,840 tons. Total for the four weeks, 70,550 tons. The requirements 

 for meltings during same time were 186,000 tons. 



As a result of the month's work,. stocks in the United States and Cuba together decreased 

 from 639,013 tons to 505,428 tons. Toward the close of the month when these conditions 

 01 reduced suoplies of dutv favored sugars and large requirements for the refined product 

 became prominent, our refiners evinced greater .interest in the market for raw sugars and 

 secured at highest values all the available supplies on offer at the time amounting to 

 some 200,000 bags Centrifugals at 3 15/16C. per lb. for spots 96 test and 2 9/16C. per lb. 

 c. & f. for 95 test basis equal to 3.95c. per lb. landed. 



The refined sugar demand was backward by reason of the late season until towards 

 the end of the month when favorable weather and a concession of 10 to 20c. per 100 

 lbs., temporarily, brought in considerable orders for contract sugars, and jobbers are now 

 well supplied for 30 days. 



The European markets were sensitive as shown by the frequent small change of 

 quotations as the reports of crop conditions varied from favorable to unfavorable, the 

 result being that the beet crops of Europe are several weeks behind their normal at this 

 season of the year. 



The outlook at beginning of August is for further improvement on the probability 

 of refiners having to renew their supplies from full duty paying sugars, a contingencj' 

 which has always existed as to come sooner or later when the full parity of European 

 prices must be paid for either beet or Javas. Cuba Centrifugals can command a further 

 rise of lOc. per 100 lbs. before such parity is reached. 



This means .that the objective point for Cuba Centrifugals this season of 4c. per lb. 

 96 test, will soon be realized. 



A matler which is creating possibly more interest and speculation as to its effect, 

 than it is really entitled to at this early' date, is the notice given by Great Britain to the 

 Brussels Convention that Great Britain decides to withdraw from the Brussels Convention 

 to which she is a party on expiration of the five years' agreement, September i, 1908. 



The view generally taken of this withdrawal both here and abroad is that it is 

 unreasonable and unfortunate. 



Unreasonable because the Convention has worked beneficially to all concerned, and 

 because the withdrawal is more a matter of sentiment, in that it conflicts with the British 

 free trade policy rather than with British business .interests. The only parties to benefit 

 by the change seem to be certain manufacturers of sweets for export, but their business 

 may even be curtailed by the assessing of countervailing duties by the other countries 

 in the Convention against British goods. 



On the other hand, the British Colonial interests will be put back on the same 

 unsatisfactory basis as existed before the Convention was formed. 



The withdrawal is unfortunate for the entire sugar producing world as it does 

 away with conditions of the five years of its existence which have proved remarkably 

 satisfactory to the entire sugar interests and introduces again the elements of possible 

 bouniies and cartels as of old. 



Russia not being a member of the Brussels Convention, and having increased her 

 sugar production by some 400,000 to 500,000 tons beyond home requirements will have the 

 British markets opened to the surplus production which will displace an equal amount 

 of other Brussels protected sugar which must find an outlet elsewhere. By some means, 

 not now evident, it may result that Germany and Austria will be obliged to come to the 

 United States and become much more formidable competitors of Cuba than they haA-e 

 heretofore been. Looking ahead, beyond September i, igo8, a low era of sugar values is 

 likely to be forced upon the entire sugar producing interests of the world. Before 

 September i, igo8, no particular influence from this withdrawal should be felt except 

 such as is entirely sentimental, which may possibly be sufficient to close the possibilities 

 of improving values which might come without this action of Great Britain. 



