Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-29
HOW PORTO RICO
BROKE THE
MARKET

In Saturdays issue an article was
reproduced from Willett & Gray
Sugar Trade Journal OF April 10
showing that Porto Rico and Cuba
sugars were being rushed on the mar.
ket, in a panic OF apprehension o!
loss in the event of the duty being
taken off before the crops were dis
posed of. In the Journal of April Ii
the following additional Information
on the way Porto Rico especially was
thrown off its balance is given:
"RaWs.-There has been no change
in official quotations during the week.
Cuba centrifugals. go test. have sold,
to some extent, at &c per h., Il I.
(3.36c per h., while Porto Ricos for
special reasons have sold at 3.33c per
h., with guarantees against reduo,,
ton of duties during 80 days after ar
rival. We continue to quote spot on
the Cuban sugar basis inasmuch as
concessions from this basis, made by
Porto Rico sellers, are because OF the
special necessity Of buyers to melt
these sugars promptly and put the
product into immediate consumption.
For this reason if offerings OF Por-
to Ricos increase the difference in
value from Cubas may increase.
The Cuba decline to &c. c. & f. on
sales to refiners invited some Specu-
latiye buying here at 2 1-64c C. & +.
as well as some interest from Europe
at 1880 to 1.95c per ID. f. o. b. Cuba,
equal to 2 Lice C. & f. to New York.
"Refiners are willing to buy May
Cubas at 2 1-32c C.. & f., while Porto
Ricos have been offered at 3.3Sc per
lib. for May shipment. which is Lice
per lib. below Cuba values. The real
sugar situation is far from normal oW-
ing to the relation of free-duty sugar
to uncertain tariff reduction, and 10
good opinion can be given as to the
course of the market from day to
day. Porto Rico is especially thrown
off its balance by misinterpretation
of the decision of some refiners when
purchasing their sugar at 3.33c per
ID. under guarantees against duty re-
duetion for 80 days to allow drafts
for 1889 per ID. 13-33c less duty
1.34Sc), and pay the remainder, say
1.348c per lb. at the end of the 30
days il duty is then unchanged. "
Sellers jump at the conclusion that
/ .9S2c. per h. is all they are likely to
receive, and inasmuch as factories are
paying colonos for cane on basis of
New York quotations for centrifugals
of 3.33c per Id. they are subject to
the intervening loss of 1.34Sc. per lb.
OF course, this is not so until the tar
int aff ho q
months hence. When they fully I'm
derstand this they will abandon the.
idea now seemingly entertained of
storing their free-daty sugars until
the situation clears Thus, not selling
at present values of 3.33c per h., but
adding storage charges to cost of
and possibly finally sell
ing at &c per h., If they wait too long,
a loss OF 1.33c from present value
would seem to be the outcome of such
a decision if carried out as proposed.
We think, on consideration and with.
better understanding, the Porto Rico
sugars will continue to be sold as
rapidly as made, and with guarantees
against duty reduction. If Cuban
holders could withdraw for awhile and
let the Porto Ricos have the market
both countries would be benefited, but
this suggestion is likely to be ignored.
The selling OF Porto Ricos at reduced
prices means smaller profits, but the
selling of Cubas at below &c c. & f.
(3.36c) means actual loss. How will
this situation be met and solved to-
best advantage except as suggested?
The decreased duty will bring profits
to Cuba eventually, if not offset by
selling at losses in the meantime,
This is the best explanation of mar
ket conditions We can give at this
writing, and it is not altogether sat
isfactory to any interest.
European beet quotations have
made small decline ofAd under a
dull and depressed condition, as
cabled to US today.
Some rains in Cuba were reported
this week, but the weather there has
cleared again and harvesting is pro
crossing" r H.. :...
cave Dbl tTINc uEpE