Evening star., 1925-01-08
PRICES OF SUGAR
TO REMAIN LOW
Heavy Production Sure to
Keep Charges Down for
Next Three Months.
BY j. c. ROYLE.
Special Dispatch to The Star.

NEW YORK, January S.-There will
be at least 10 per cent more sugar
to fill the sweet tooth of the world
in 1925 than in the record break
ing year of 1924, and indications
point to continued low prices for
three months at least. Cuban raw
sugar has slumped over 20 per cent
in price in the last month, and the
time of heavy selling of Cuban stocks
Is at hand.
The Cuban mills are now grinding
the largest crop ever known on the
island. Weather conditions there
have been exceptionally favorable re-
Gently, and the warm, dry weather
has counterbalanced excessive rains
earlier in the season, which it was
feared would reduce the sugar con-
tent of the cane.
Growers Seek Protection.
Notwithstanding these facts, the
Cuban growers continue to issue com
plants which in reality are demands
for protection against high-priced
American labor. Cuba has the ad-
vantage of freight haul over Hawaii,
the Philippines and Porto Rico.
Wages are lower in Cuba than in the
island possessions of the United
States. Cane is grown with less
labor than it takes to grow corn in
this country and the production of
sugar consists simply in cutting the
cane, crushing 1t and boiling down
the juice.
Beet sugar, on the other hand
against competition of which the
Cuban growers protest most vigor-
ously, involves a highly complicated
process. The Cuban producers can
Nrf rot
to work and complain wages have
risen and that with a supply of labor
almost certain TO be inadequate
further advances are imminent Labor
has been imported into Cuba from
neighboring islands and from Mexico
and South America, but this labor,
which beet producers cannot call
upon, still is paid on a scale far be-
meath that obtaining in the beet fields.
Europe's Big Outfit.
Europe will manufacture approx
mately 100000 tons of beet sugar
this season, or enough to take care of
a large part of the transatlantic re-
quirements. Stocks of sugar in Cuban
ports are S3 per cent larger than at
this time last year, and a much larger
proportion of the crop will be avail
able for export to the United States
than in 1924. This seemingly would
indicate low prices, at least until
midsummer. when consumption is IT
it's height. Low prices will stimulate
consumption to some extent, although
it is not believed this increase in use
will equal the gain in supply.
Cuban producers who sell to them
selves however, may not do so
badly. Many Cuban mills and planta-
tions are controlled by American re-
finers and the drop in prices of re-
fined sugar in the last month has
been considerably less than for raws.
With a satisfactory differential be-
tween raw and granulated refiners
normally can make a better showing
with relatively low than with rela-
lively high sugar prices, since low
prices stimulates retail purchases
Estimated United States Output.
With the American beet sugar pro-
duction estimated at the record figure
of 100000 tons, there is not much
chance that the differential between
raw and refined will favor the latter
too greatly, since the beet sugar pro
ducers have been active compe titors
for business even on the Atlantic sea-
board and Texas City sugars are now
actively competing in this market.
Germany has released 10000 tons for
export and European sowing this year
will show another increase except in
Italy.
The Louisiana sugar industry is
keenly depressed. The crop is the
smallest in 80 years and 1t is doubt
full If the yield will equal 100, 900 tons,
or one-third of normal The crop
probably will yield growers s15,OOO,-
600, as compared with $4,000, 900 last
year.