THE CUBA REVIEW 



Sugar Review 



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



Our last report mentioned that an important item affecting the sugar markets was the 

 tariff negotiations and, particularly, the large increase voted by the Senate Finance Com- 

 mittee to 1.82c a pound on 96° Cuban sugars. This high rate was accepted by the Senate 

 proper but a later compromise between the House and Senate reduced the rate to 1.76c 

 which figure has been approved and is now a law. These matters had considerable effect 

 on the sugar business and the month under review has been quite weak and a sharp decline 

 is noted. At the time the previous article was written the market quotation was 3^c 

 c. Si f. and after a few transactions at this price, the quotation was reduced to S^c, to 

 Syic, iyic and then to 3c c. & f., at which figure the market is now quoted steady. At 

 the time the new tariff went into effect, on Friday, September 22, there was a deadlock 

 between the buyers and sellers of sugar, as the day previous to the passage of the Tariff 

 Act Cuban sugars were quoted at 3c c. & f., which under the old duty figured 4.61c, while 

 on September 22, under new tariff regulations, the quotation figured 4.77c, duty paid. 

 Refiners paying the duty as they do, were not disposed to assume this additional charge of 

 16c per 100 pounds and endeavored to have Cuban holders reduce their views to some extent 

 below 3c c. & f. and hence assume, in part, the increase in duty. While refiners' extreme 

 view was to obtain the full 16 points they were willing to compromise on a part of this 

 tariff adjustment. However, one of our refiners, the National, after waiting a few days in 

 hope of obtaining sugars below 3c c. & f., decided to purchase sugars at this basis under 

 new tariff conditions, and thus we had the first legitimate transaction under the new tariff 

 basis. 



European crop conditions, owing to the nearby approach of the harvesting time of 

 beets, are assuming more and more importance and we were lately in receipt of a cable 

 from F. 0. Licht, who is considered an authority in Europe, stating that their preliminary 

 estimate of the European beet crop for the total of Europe, excluding Russia, was 4,759,000 

 tons compared with 4,000,000 tons last year, also excluding Russia. A prehminary forecast 

 given some time previous only indicated a crop of 4,500,000 tons, so the latest developments 

 show further improvements in the indicated crop outturn. The chief sources of increase 

 are in Germany, where the crop is estimated to reach 1,600,000 tons, compared with 

 1,330,000 tons last year, and France at 560,000 tons, against 227,579 tons outturn the past 

 crop. The crop estimate that particularly interests the United States is that of France, 

 this country in the past few years having imported considerable quantities of Cuban raw 

 sugar and American refined, and with the crop expected to outturn 560,000 tons it looks as 

 if the exports to that country would faU off fially 200,000 tons. 



Our own beet crop is growing under favorable conditions, and latest advices indicate a 

 shght increase over earlier figures. From present indications the crop will outturn some- 

 where between 650,000 and 700,000 tons. 



With the large hquidation of Cuban sugars held in warehouses against exchange options, 

 the exchange is becoming of less importance as far as market fluctuations are concerned. 

 The quantity of Cubas carried in warehouse at one time exceeded 100,000 tons but this has 

 been reduced to less than 20,000 tons, practically all of which is held against December 

 options. 



Refined. — The sharp declines in raw sugars naturally discouraged buyers of refined 

 sugar and during the past month the demand has been remarkably small. Some buyers 

 who anticipated considerably higher prices in refined sugars overbought their requirements 

 and, hence, have been compelled to resell their excess stocks to other buyers who were more 

 conservative in their buying. At the time of our last article, the refined quotation was 

 6.75c, but it is now 6Xc with secondhands selling at 6.15c. The Federal Sugar Refining 

 Co., who sold some 12,000 tons of sugar for export a month or so ago at 5c net cash in bond, 

 not receiving any shipping instructions on these contracts within the required time, was 

 compelled to offer these sugars for account of whom it may concern to the domestic trade, 



