34 THE CUBA REVIEW 



Sugar Review 



specially uritteti for The Cvba Review by Willett & Gray, Xeiv York, X. Y. 



At the time of our last review of the sugar market, which was dated April 25. 1921 

 raw sugar quotations were nominal on the basis of 2y^c. c. & f. for prompt and 2 3/8( 

 c. & f. for later shipments, the market being barely maintained at these prices. Durin 

 the period under review, however, on reports of a bullish nature from various quarter; 

 some improvement has been shown, which is maintained as we write and quotations c 

 Cubas are now on the basis of 2 9/16c. c. & f. for prompt sugars with 2^^c. c. & 1 

 asked for June shipment. 



In regard to the bullish report received from abroad. F. 0. Licht. the Germa; 

 Statistician, cabled us the first indication in regard to the extent of European Beet croj 

 sowings, which shows only a slight increase compared with last year. Under thes( 

 circumstances, no increase in production this year in Europe is likely and Europeai 

 purchases of sugar in good quality should keep up during the balance of the year. 



Cuban advices also have shown a tendency towards improvement of the situation 

 our latest cables reporting a rapid closing down of Centrals with only 81 Centrals now 

 at work against 172 at the same time last year and 75 in 1920. The rainy weather also i; 

 interrupting grinding with a consequent reduced production. 



Under the above stimulation the demand for raw sugars has been good and even 

 under the large offerings, prices have been fully maintained. Porto Rico sugars are not 

 in such an active demand and have been sold in instances at slightly under the Cuban 

 parity with Philippines also sold at the same basis. Cuban sugars for the United 

 Kingdom have sold at 13s 3d c. i. f. U. K.. while sales at f. o. b. basis have also been 

 made at 23^c. f. o. b. Cuba. 



Production in Cuba up to this writing amounts to 3.105.705 tons and it is now 

 certain that our estimate of 3.500.000 tons will be reached and probably exceeded to the, 

 extent of several hundred thousand tons. 



From Porto Rico we have a revised estimate of the production to be e.xpected from' 

 the 1021-22 campaign, which figure our correspondent now places at 368.281 tons, a 

 decrease of about 70.000 tons from the 1020-21 production, which also affects the 

 situation bullishly. 



The firm market in raw sugars has had a tendency to improve the demand for 

 refined and quotations have been advanced slightly and practically all our refiners now 

 quote on the basis of 5.60c. less 2<yc for cash. f. o. b. Refinery. The demand for 

 sugars for export continues good and while there is some competition with Canada in 

 this connection on prompt deliveries, it is now practically impossible to buy under 

 3.80c. net cash in bond locally. 



Can.adlax T.ariff 



Special telegram received by us from Toronto. Ont.. May 2o. 1022. — The Canadian 

 Budget was introduced this afternoon and it increases the preference on sugar above 

 No. 16 D. S. and all refined from y^. to 1/3 off the general tariff. On the 96° test 

 basis the general tariff was 2.24c. and 1/3 off of this would bring the Preferential 

 Tariff to 1.49 l/3c. a pound against the old rate of 1.68c a pound. For sugar exceeding 

 99° the general tariff rate is 2.39c. per pound and the new Preferential will be 1.59 l/3c. 

 per pound against the old rate of 1.79c. The telegram does not mention raw sugars, 

 hence we are of the opinion that the old tariff rates are unchanged in this respect. The 

 Government has also decided to impose an excise duty of 49c. a hundred pounds on 

 domestic Beet sugar, which is the first time in the history of the beet sugar industry 

 that such tax has been assessed. Another important feature in the Budget is the increase 

 in the general sales tax of 50% with the income tax remaining unchanged. 



