The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-11-26
SUGAR INDUSTRY SOUND
SAYS ROGER ". BABSON
Famous StatiBt1ciaa Favors Sugar
Stocks az Long Swing Speculation
Ry pooER W. BABsoN


Much interest ~ manifest in sugar
today. particularly on the weak SIDE.
The worst is over. however. and The
commodity IS rapidly becoming re-
adjusted. A year and = haif ago. ra"
sugar was selling FOR 22l.c pound
tie most cxorb!tanl price in modern his
tory. Hvsterical buying OF both com
modify and security resulted. suddenly
Il become evident that no shortage OK
.sted: that the Invisible supply was III
reality of enormous proportions. lheIe
,.ou,d be but one result OF suCh Specu-
Ia;Ion Decentralization inmcdia tely FOL
lowed, Prices IN February. 1921. de-
rl!rcd t. below ic per pound. The re-
adjustment was wholly IN keeping with
mo fundamentals and the inevitable
lay, OF action and reaction. 1t usually
follows that the higher q commodity
goes the more severe IL the reaction.
What Is the world status nj present
with raw sugar selling around DC. one
point stands ou' prominently Inc
world production is not adequate TO
meet tn" potential demand. Rememher
hat before the war. Europe produced
nearly SOC Of the worlds. raw sugar.
uraClirally 9.00O. 900 tons OF the l6'oOV.-
DO0 tras. During the past Few years
Europeau out has been less than 3,5OO.-
00u ION. annually. or 81 e. under the
normal figure. Europe !s not recovering
Notwithstanding the curtaiied per capita
consumption. IN proportion TO her
needs. We are Still exporting tremen-
douS quantities. mora than the record
olume Of n year ago. and 1000 more
tbsn m 1919. until Il more sclf-sus-
;aininr Ia sis is ?ea "h"d. = nigh volume
Of exports will II" maintained.
stocks Hore Are Low
cuba took upon her shoulders the
hurdpn OF c"untcravi:nE dwInd!ing
E;ur0ucan production. Tho pinnacle Of
tho great EXPANSION occurred IN 1920
the urpSy CholoE!rn' moment. II takes
n year To produce sugar but the depreS-
sion swept upon us IN few short
months. The huge profits made by
Cuban growers We're practically wiped
nai and the timely function ~ tho Sugar
Commission prevented more d-asti" col
lapse az tho market and more serious
financial difficulties. All eyes are
focused ou the unpre rrn'ed stocks IN
/ Iura--now close 70 100000 tons.
against an average during the past
three years OF only 2S3.nou tons. DO not
figure the fact. however. that stocks or
sugar IN this country are abnormal Y
low Imports Ia date average 10000
tous under the Volume Of n year ago.
. Usually at this time oC the year the
bulk VI tho sugar crop IL in this conn-
trv and not in cuba. The low domestic
invisible 4upply viii inevitably cause
marked nroads in the cuban stocks dur-
'ns the next month ~ two. Moreover.
he financia, setback u the sugar pro
Queer is rot w!thnlt cCf"rt. The pres
en- price OF sugar il close to II not
below rhe cost ~ requirements II -
not surprising. therefore, that IN" 'rend
/ l.? nrOduc' ION is dawn ward
General Business Improving
TIL" l2al-192@ cuban crop promises
nnly 2OhN. nnn torS--a decline Of "3rc
from last year The world output aC-
rrcgat"s hA~civ $500. on6 tons, as COM
1ared with 1S.S0o.h00 tons before the
war; decline Of NC. An even great
~ rurcuilmnrt is entirely probable.
rncrt Is "u'irc,y rrohahi Keeping in
mind underlying conditions. and pres
en- srn.ks the prospective now crop
should not rove burdcnsome or drag
on thu market stocks OF the leading
SUGAR companies meanwhile have drop
nod from n nigh of 40 n April, 1920. to
oTl:. tho present quotation.
do not prnh'.i IN immndiG'" rr""r-
cry but certainly believe thar his IL
not , .fule T. prl,t.Caiv give AVA the
>tcrr cnmnar,oa Vow wiz IN al prob
ah.''rv Hny mor" for both nsXt year.
General husiros+ Is improving slowly
shows our present position but 11ct ha-
low norma whi,n auGurs well for
Christmas business
l,1, ct n, VA -nf