THE CUBA REVIE W 35 



Sugar Review 



specially written for The Cuba Review by Willett & Gray, New York, N. Y. 



Our last report, dated September 26, 1922, stated that the deadlock between 

 buyers and sellers over the increased tariff differential had been broken by the National 

 Sugar Refining Company deciding to accept the inevitable and purchase sugars at 

 3c. c. & f. For a short time after this, owing to the very light demand for refined 

 sugars, our refiners declined to purchase sugars and this resulted quite unfavorably 

 for them as they allowed their raw supplies to run down to a minimum. While 

 refiners were thus refusing to buy raw sugars they had quite a large stock of refined 

 sugars and they were making all kinds of concessions, not only in prices, but 

 in special terms, to induce buyers to take refined sugars. The market was also 

 affected by resales by those refined buyers who had overbought, but after a 

 period of time such a condition obtained that most refined buyers appeared to have 

 run out of refined sugars at the same time. This induced quite an active demand 

 for refined sugars and, as noted above, it caught the refiners when they had practically 

 no raw stocks of consequence and which necessitated them to enter the market to 

 purchase raw sugars, preferably in nearby positions. Cuba being the chief seller 

 (Porto Rico being practically exhausted) realized the situation as soon as the 

 refiners and, hence, we have to report in this review a continually advancing market, 

 sales having been made on the date of our last report at 3c. c. & f., after which 

 the market advanced to 3^c., 3 3/16c., 3^c., 3>4c. and finally to 3^c. c. & f. at which 

 quotation this review closes. During all this time the refiners were active buyers 

 at each advance established, but it took them quite some time to accumulate sugars, 

 and even at the present writing they continue active buyers at the last-mentioned 

 quotation; but as there are no sugars available for immediate wants, there does not 

 seem to be any reason for them to increase their limits as it would not bring any 

 sugars out that would be suitable. Hence, we look for a period of quite firm market 

 conditions without material change for the immediate future. 



Similar conditions obtained in refined sugars, refiners being reasonably free sellers 

 at each advance in refined sugar; and at the close the market has eased off somewhat, 

 refined buyers having apparently secured sufficient sugars under contract for thirty 

 days. However, there is much difficulty in refined buyers obtaining the shipment of 

 their sugars as refiners' meltings are curtailed owing to their small stocks of raw 

 sugars and the small exports thus far fVom Cuba, although these should show a large 

 increase in the next ensuing weeks. 



No particular reports of interest have come from Europe during the month, 

 but the beet crop appears to be progressing under somewhat unfavorable conditions 

 and no changes have been made in the crop estimates from those outlined in our 

 last report to you. 



On October 16th we received advices that the Central Preston, the last Central 

 grinding in Cuba, had finished the crop with an outturn of 702,181 bags and, hence. 

 the final outturn of the 1921-22 crop could be calculated, and the figure is given 

 as 3,996,387 tons, the largest crop on record in Cuba. 



Refiners in the United Kingdom appear to have taken an attitude somewhat 

 similar to that obtaining here as they were very slow to increase their buying limits, 

 and practically all their offers were below market quotations, although they succeeded 

 in purchasing quite a good quantity of Mauritius, Brazils and Peruvian sugars at 

 somewhat below Cuban parities. 



The Java Sugar Trust, a selling organization controlling about 90^r of the mills 

 in Java, took advantage of the rise in Cuban sugars and disposed of the balance of 

 their old crop sugars, harvesting of which commenced in .\pril May, 1922. This 

 balance consisted of about 50,000 tons of sugar. With the disposal of these old crop 

 sugars, buyers became interested in new crop sugars, harvesting of which starts 



