THE CUBA REVIEW 



SUGAR REVIEW 



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



STOCKS HAVE BECOME SCARCE CONTINUATION OF FULL PRICES IN- 

 DICATED—CROP 100,000 TONS LESS 



Our last review for this magazine was dated November 9, 1910. 



At the date centrifugal sugars, 96 test, were quoted at 2%c. c. & f. or 3.86c. per pound 

 landed. To-day's valuation is 4c. per pound for 96 test. Beet-root sugar was then 8s. 

 10% d. f. o. b. Hamburg, equal to 3.8oc. per pound landed for centrifugals at Xew York 

 and is now 9s. %d. f. o. b. Hamburg, equal to 3.89c. per pound for centrifugals at Xew 

 York. During the interim centrifugals sold down to 3.86c. per pound, recovering later 

 to 4.0.5c. per pound and closing at 4c. per pound. The cause of this recovery is that at 

 the closing of the campaign season stocks in the United States, and available for imme- 

 diate delivery, have become exceedingly scarce and in few hands, calHng for increased 

 payment by refiners to keep their refineries going. This condition proved the correctness, 

 as far as the United States is concerned, of the condition of sugar at the beginning 

 of the campaign, as mentioned in our article for The Cuba .Review on November 4, 

 1909, right at the point when the European movement for higher prices began, on the 

 outlook for greatly curtailed world's supplies of all sugars. Under those conditions the 

 opening prices for new crop Cuba sugars rallied from 2V2C. c. & f. rapidly to 2 ll-16c. 

 c. & f. for deliveries up to March shipments. Now, at this writing, we have to report 

 quite the opposite conditions for the world's supply of sugar for the coming twelve 

 months' campaign. Not only larger crops are promised everywhere, but the limit to 

 those larger crops, now expected to be 2,000,000 tons in excess of last year, have never 

 before been equalled. Naturally, a considerably lower level of prices is bound to exist 

 throughout the present sugar campaign. The actual scarcity of supplies at the moment 

 has had an efifect on the opening prices for the new crop Cuba centrifugals, holding the 

 opening values undoubted^ higher than they would have been under normal conditions. 

 Nevertheless, the first sales of Cuba crop centrifugals were made at %c. to %c. per pound 

 below the opening prices of last season. The opening transactions were made at 2%c. 

 per pound for December delivery, 2^/4 c. for first half of January and 2%c. for first half of 

 February. December was higher because of the scarcity, and January has ruled higher 

 since the opening, on account of the delay in the beginning of the grinding season in Cuba, 

 which delay is proving to be of much importance. Last year the centrals commenced work 

 on December 1st, and still the receipts in the United States did not begin to accumulate 

 until the loth of January. This season only nine estates are working against forty-four of 

 last year, and this forecast even further delayed arrivals in the United States than last 

 year and a continuance of full up prices for January delivery, at least throughout the 

 month. 



As regards crops, Mr. F. O. Licht's estimate of the European beet sugar is 8,057,000 

 tens, and estimates from other experts confirm these figures. This indicates a European 

 beet sugar crop of 1,124,657 tons in excess of the largest previous crop (1905-1906) of 

 •6,932,343 tons. The Cuba crop is not yet definitely fixed at anywhere near what m.ay 

 prove to be its final outturn, but indications point to a crop 100,000 tons more or less 

 than last season. A quite significant feature of the present situation is that, notwith- 

 standing the enormous size of the European crop far exceeding the requirements for con- 

 sumption of European countries, the abilities of its producers and manipulators are such 

 that its value has not yet been allowed to go below its cost of production, which, by the 

 best estimates available, is 9s. per cwt. f. o. b. Hamburg. Should this cost valuation be 

 maintained for the European crop, there would appear to be no reason for the sale of 

 the Cuba crop without some profit, at least on its cost of production, it being protected 

 to that end by its 20 per cent advantage in duties by the reciprocity treaty with the United 

 States. 



The consumptive conditions of refined sugar in the United States during the period 

 tinder review have been quite sati'sfactory as a whole. A little difficulty attending the 

 production of sufficient cane granulated to supply the demand has worked very favorably 



(Continued on page 34) 



