The Hawaiian gazette., 1884-12-03
The Recent Advance in Sugar.

The following article bearing on our great in
dustry appeared in the New York Shipping Gazette:
In no department of trade or industry has the
depressing influences of low prices been more
severely felt than in the sugar trade. Sugar plan
tiers, whether in the East West Indies, have been
| forced in a great many instances either to the
verge of bankruptcy or the abandonment of their
estates, and the sugar trade in every part of the
world has been passing through crisis in the full
lest meaning of that word. The expansion of the
Beet Root industry IN Europe has been generally
| recognized as the immediate cause of the pheno-
menal low prices that have been current during
the past few months, during which period by far
the most important factor in determining the fu-
ture OF the market IN Europe as well as in this
country has been the possible yield of the crop
which Is now about maturing. The first estimates
of the probable output we're awaited with anxiety
and when Nj. LIGHT, the recognized authority an
nounced that there would be an increase of about
190, 600 tons over last year, there was further
decline in the unprecedented low prices then rul-
ing, and the gloomy clouds of depression looked
heavier and more diRcouraCing than before. Since
then, however, n decided improvement for the
better has taken place, the market for Raw Sugar
having advanced fully three-eighths of cent from
the lowest point, and for the present at least
steady tone prevails. This brighter aspect has
been brought about, partly by the publication of
more favorable estimates of the yield of the Beet
Root crop, NJ. LIGHT having reduced his previous
estimates 45 900 tons, and partly in consequence
of the discovery that the speculative market in
Europe had been largely oversold and the short
interest had in reality "cornered" itself The
effort to cover accordingly resulted in the sharp
reaction already experienced which, coming in
connection with the second estimates of NJ LIGHT
only made the upward movement more decided.
1t appears that German spectators on the "bear"
side finding 1t difficult to obtain Sugar for delive-
ry in the expectation that still lower prices would
bring out more Sugar, sold freely through London
brokers as we'll as upon the Continental markets,
the disposition TO sell increasing as the short in
terest became expanded, but this move only DEM
onstrated that the market had been oyersold and
a sudden reaction was the natural consequence
While therefore, the recent advance has, in some
measure, been due to speculative causeswhich will
soon be removed it is, nevertheless, true that the
situation has undergone substantial improvement,
and while it is likely that there will be reaction
and decline when the short interest has covered
there is reason to believe, the phrase goes that
the bottom has been reached" Competent
authorities in Europe sppear to be of opinion that
the worst story about the Beet crop has been told
and thus the most important element of uncer-
tainty has been discounted. Low prices have
stimulated consumption all over the world, but
notably in this country, and in this way some pro-
gress has been made towards equalizng supply
and demand. The production of both Beet and
Cane Sugar is too great in the aggregate TO war
rant prediction that for the next six months al
least there will be any great advance in the value
of Sugar, but ii is satisfactory TO know that
point has been reached where the tide will no
longer run ont, and 1t would seem as though there
were good reasons for believing that from this
time forward, the tendency will be slowly and
gradually toward better condition of affairs Re-
a.
Ginning market and Sugar planters will have some
definite idea as to what their product will realize
when manufactured while the forced economies
that have been brought about, as well as the re-
moval of many Government restrictions, have
made it possible to produce Raw Sugar very much
cheaper than heretofore.
In this connection il is significant that although
recent accounts from Cuba point to very large
yield from the next crop, there is a much more
cheerful feeling there. The depression of the
Sugar industry has touched Cuba in the most vital
part, and accordingly a tone of announcement
fIom that locality is all the more noteworthy.
Reports received last week say
Few years in the history of the country have,
for large Sugar crop, been more favorable than
the present as far as the weather is concerned.
Seasonable showers have fallen in nearly every
Cane growing district and were IL not for the MANY
estate5 that have been either wholly or partially
abandoned by their owners for want of resources |
the coming crop would undoubtedly be larger
than that of any previous year."
At Colon where exist large plantations whose
owners still command the necessary funds for
proper cultivation, the has acquired pheno-
menal growth, which many persons claim to be |
unprecedent in that locality and more than one
estate is putting up additional machinery TO be
able to grind the cane in due time.
The rise in the price of Sugar which was Initial
ed IN the latter part of last week and which has
gradually increased together with the announce |
ment of the depreciation IN price Of Beet Sugar In
Europe which seems likely to terminate In panic
and the recent suppression of Import duties on
Cuban Sugars in Spain, has made our planters
jubiIant and they now speak of the good time
coming when they sell their products at price |
covering the cost Of production-a hope which |
many had abandoned.
But TO say now whether the coming crop will |
reach or surpass the present would DO apremature
opinion and any estimate a mere guess work,
numerous estates, especially those making low |
grades Of Sugar, which obtained this year most
ruinous prices, have been badly neglected and il
Is impossible to predict whether the deficiency on
this account viii be ultimately covered by the ez-
cepiional Development Of the cane.