Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-01
PREDICT
SUGAR PRICE RISE
Grip of Cuba on Markets of
/ World Tightens-Restric-
ton Big Factor.
BY j. C. ROYLE.

SPECIAL Dlspdtcn lo AHe -Ctai-
NEW YORK, March 1.-The grip of
Cuba on the sugar markets OF the
world has frightened in the last few
weeks. This statement is substan-
tiated by the figures just issued by
statisticans recognized in the trade as
conservative. Thse world surveys
place production at 24,347 900 long
tons, a decrease of Gil 900 long tons
from 1885.
The same authorities place probable
consumption for the year at 24.8S1 900
tons, or SCI 900 tons more than during
the previous annual period
This situation has been brought
about by restriction of production in
Cuba under governmental decree. The
only possible Interpretation of these
figures would indicate an advance in
the price of sugar. Such an advance
would affect every dinner table in
America. would act as a check to the
canning industry. would mean narrow
er markets for fruits and vegetables
and drag on the tin plate and paper
container trade.
With a normal and unrestricted
Cuban production, the cane and beet
sugar producers of continental United
States and Porto Rico. the Philippines
and Hawaii have acted as a check on
Cuban price manipulation and steadied
the price of this great food commodity.
With an estimated consumption OF
over half million tons in excess of
production, this factor in market
sterilization is nullified to large ex-
tent.
Narrow and Uneasy.
The sugar market has been narrow
and uneasy. But there are ia Cuban
mills now grinding at the fastest pos
sible rate. The exact quota of each
mill has not been settled. President
Machado was due to come to Wash
ington and it was understood in the
trade that his visit had to do with the
sugar situation more than any other
subject. His illness has postponed his
journey, but he has repeatedly re-
iterated the determine ton of his adj
ministration to limit Cuban production
for the year to- $500, 900 tons.
Despite all these facts, it is no secret
that Cuban producers have not aban-
doned their attempts to have the tariff
on Cuban raw sugar into the United
States materially reduced.
The beet sugar producers take full
cognizance off this fact. This was
shown in the agreement reached in
the last few days between the Great
Western Sugar Co. and the Mountain
States Beet Growers Marketing Asso-
citation. This contract guarantees a
price of $ssa ton for the 1927 beet
crop provided the tariff remains UNI
changed. If the tariff is reduced be-
fore the 18th of next November or If
a reduction is announced prior there
to, effective before October l, 1928, the
guaranteed price will be lowered 2.6
cents for every cent cut from the pro-
tective duty. But under the agree
ment any tariff reduction cannot lower
the international payment more than
81 ton. This fixes the minimum beet
price at 81. ton.
European Output Down.
Statistical reports on European pro-
duction indicate production this sea-
son will be about $4,000 metric tons
less than year ago. As Europe is
regularly large importer on balance
this means large supplies will have to
come from outside sources. This will
still further strengthen the Cuban
position. Cuba will be able to spare
for Europe scarcely $4,000 tons from