THE CUBA REVIEW 35 



Sugar Review 



specially Written for The Cuba Review by Willett & Gray, New York 



The two matters which we called attention to in our last report have gained increased 

 prominence and have caused a tremendous demand for Cuban raw sugars as well as 

 American refined. The large demand for the latter was not only for the United States 

 but from all countries of the world, who have continued to buy steadily, while advances 

 made by refiners for their product have had no effect in checking the demand. These 

 two points have been the remarkable large consumption to which we have just referred 

 and which has enabled Cuba to ship over 3,250,000 tons of new crop sugars, a figure 

 that has broken all statistical records as far as distribution of sugar is concerned. 

 The other point to which we made reference in our previous report was the European 

 situation. It was generally expected earlier in the year that there would be sufficient 

 increased plantings in Europe to allow a considerably larger crop of beet sugars than 

 was the case last year. When the actual plantings were finished, it was found that the 

 actual acreage planted to beets showed practically no increase, taking Europe as a 

 whole, and hence, instead of Europe making a crop of 500,000 to 1,000,000 tons larger 

 than last year, it will show little, if any, increase. This indicates a continued good 

 demand for Cuban raw sugars and American refined sugar, as the consumption in Europe 

 has increased largely and, in fact, Germany has been compelled to seek outside sources 

 in order to fill out their consumption needs. It is generally expected that Germany 

 will buy at least 50,000 tons of sugar. It must be remembered that German consumers 

 are paying very high prices for this outside sugar as all purchases must be made on 

 the gold basis, and customs duties are also paid on the gold basis, and hence it must 

 figure remarkably high when compared with the German product which has recently 

 been selling below the world's market price. 



As far as quotations are concerned, our last review quoted Cuban raws at 2 9/1 6c 

 c. & f. and now the quotation is 3>4c. c. & f. As we write all refiners quoted Granulated 

 at 6.20c. except Federal, which latter refinery names 6.30c. less 2 per cent for cash, 

 f. 0. b. refinery. Export Granulated is quoted at 4.45c. net cash, in bond basis. 



It is impossible to state how high prices will go but they will have to reach a point 

 sufficiently high to stop the heavy consumption of sugar, and what that figure is, no 

 one can state. We made a calculation of the balance of supplies and as it might be 

 of considerable interest to your readers we give the calculation herewith. 



CUBA — Balance Supply 



Old crop (1920-21) exports from Jan. 1 to June 10 1,158,879 tons 



Exports of new crop for the same period 1,995,417 tons 



Total exports Jan. 1st to June 10th 3,154,296 tons 



Cuban Crop Estimate 3,750,000 tons 



Consumption 130,000 tons 



3,620,000 tons 

 Carry-over on Jan. 1, 1922 of old crop 1,225,318 tons 



4,845,318 tons 

 Deducting exports as above 3.154.296 tons 



Balance supply available 1 .691 ,022 tons 



Of which at least 250,000 tons have been sold, or say an available balance to 

 supply the United States, Canada and Europe until new crops are available of 1,450,000 

 tons. 



New York, N. Y., June 22, 1922. 



