THE CUBA REVIEW 



SUGAR REVIEW 



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



EUROPEAN BEET CROP MUCH DAMAGED HOPE OF FULL PRICES NEXT 



YEAR WARRANTED FOR CUBAN SUGAR 



Our last review for this magazine was dated July 17, 1911. 



On that date centrifugals 96 degrees test were quoted at 4.23c. per pound and are now 

 4.S75C. per pound, showing an advance during the period under review of .645c. or 

 more than %c. per pound. 



Beet sugars, on the London market, at that time were quoted at lis. 10 ^^d. 

 and are now los. 1^4 d. for present month and 14s. SVid. for new crop (October- 

 December delivery), showing an advance of 3s. 3d. per cwt. (112 lbs.) or .72c. per pound. 



Present prices are the highest touched since our last review ; on the way up there 

 have been some reactions in prices on the London market with quick recoveries, 

 while at Xew York the advance has been continuous without any reactions, but, with 

 one period of nearlj- two weeks when buyers were withdrawn, resisting the high 

 views of the sellers, at the end of which refiners re-entered the market and paid .2.5c. 

 advance over the previous quotation. 



This extraordinary adA^ance has been caused by the damage done to the European 

 beet crop during the past six or eight weeks ; the damage was beginning to be noted 

 at the time of our last review and was then being caused partly by insects and partly 

 by unfavorable weather, preventing the roots making a good start in many important 

 sections ; since then there has not been sufficient rain in those sections to enable the 

 roots to properly develop and, in fact, the long continued drought has had an ill effect 

 generally, as it has been accompanied by intense and very unusual heat, which has 

 dried up the streams, interrupting navigation and causing, in addition to crop damage, 

 much personal discomfort, especially in Germany, Austria and France. Average tests 

 of beet roots in various districts of Germany on July 24th compare as follows : 



Weight without leaves 102.0 gr. against 160.0 gr. in 1910 in the same 19 districts. 



Sugar, 14.04 per cent against 12.80 per cent in 1910 in the same 13 districts. 



Quotient of purity, 80,00 per cent against 80.70 per cent in 1910 in the same 13 districts. 



If rain should come quickly and weather conditions during the remainder of the 

 season (about six weeks) be favorable, it is possible that there may be same recovery, 

 but part of the damage done is now irreparable. 



It is too early to estimate the probable total outturn of the European beet crop, 

 but the most conservative figures mentioned in commercial circles is a production of 

 7,000,000 tons, based on the large area of sowings and the conditions to date ; last 

 year's crop amounted to 8,100,000 tons. Thus there are indications of at least 1,100,000 

 tons decrease,- with prospects of a larger deficiency in beet sugars if the unfavorable 

 conditions continue much longer. 



Against this deficiency there is expected to be possible increases in cane crops 

 of some 500,000 tons in Cuba, 100,000 tons in Java and 100,000 tons in a few other 

 countries together. 



It must be remembered that the bumper crop of 8,100,000 tons in Europe last season 

 refilled the depleted invisible stocks and that, a beet crop of 7,000,000 tons this year, 

 with the expected increase in cane crops, will be sufficient for the world's consumption : 

 on this assumption the damage done in Europe thus far is fully discounted in prevailing 

 prices, but if further damage is done and if speculators control the market, the outcome 

 cannot be forecasted. 



The record of prices higher than 4^'sc. for 96 test centrifugals, paid in Xew York 

 during September-December, within the past ten years shows : in 1910, on September 

 1st, 4.425c. due to temporary scarcity of supplies ; in 1909, on November 10th, 4.45c., 

 due to temporary scarcity, and in 1904, on December loth, 4.875c., with further advance 

 in January, 1905, to 5.25c. due to a fallshort of a million tons in the beet crop and a 

 wild speculation in Europe. 



Locally, the holders are asking .jC. for 96 test sugars in store at Xew York, of 



