Evening star., 1934-06-17
RAW SUGAR SCARS
TO HIGHEST MARK
SINCE APRIL, 1880
Federal Acts and Drought
Larger Factors Than
Consumption.
GREATEST USE NEARS
IN CANNING SEASON
Weeks Trading Jumps to $50, 900
Tons, Compared With 26,650
From May 21 to 26.
BY JOHN A. CRONE.

Special Dispatch to The Star.
NEW YORK, June 16.-Raw sugar
reached 1872 cents a pound here this
week-its highest price since April.
1880. This rise was accompanied by
active trading, which neared its best
level for the year to date.
The rapid rise of sugar Is due to
various governmental acts and, to a
lesser extent, the drought. rather than
increased consumption, although the
commodity is nearing its period Of
largest use, the canning season.
Just before imposition of the
processing tax of p cent a pound raw
and .535 refined on June 8, grocery
chains and confectionery manufac-
turers bought heavily from refiners,
who this week we're buyers of raw
sugar. Drought has cut the United
States beet sugar crop between 100000
and 100000 tons, but good rains will
quickly add sugar content to beets.
The Jones -Costigan bill, the tariff
bill, and the Cuban trade treaty fit
like key pieces of picture puzzle into
this sugar situation. They explain
why Philippine sugar now on ships
in this harbor is cheaper than sugar
in Puerto Rico, why the trade is will
ing to pay premium for Cuban raws,
and why the rice growers of Arkansas.
Louisiana and Mississippi hope the
Agricultural Department, before the
Cuban trade treaty Is announced, will
be shrewd enough to protect Cuban
American rice business from Oriental
competition.
All Branches Cautious.
From February 9, the day President
Roosevelt outlined his sugar program
to Congress until June g. when the
processing tax, a part Of the allot-
ment plan, became effective, virtually
all branches of the sugar trade exer-
cised caution. Political uncertainty
compelled it. This was mirrored in
trading ON the New York Coffee and
Sugar Exchange, where in the first
five months only 10000 tons were
traded against 3,051 $50 in the same
period q year ago.
: In the week of May 21-26 only
26,650 tons were dealt in, the lowest
week OF the year, as the trade awaited
quotas under the Jones -Costigan act
This week, with Saturday q holiday,
trading totsled 10000 tons.
The Jones -Coetigan act limits sugar
production to {, 6,472 900 tons this year.
1t is retroactive to January / for for
eign and domestic sugar. Quotas fol-
low: Cuba. 1902, 900 tons; Philippine
Islands, lois, 900; Hawaii, $4,000;
Puerto Rico. 8o3 900; United States
beet and can growers, 100000, and
for all other countries, $4,000 tons.
Higher Prices Provided.
The allotment act therefore really
divorces the United States from world
sugar markets. excepting the countries
mentioned above, and will permit
sugar here to have higher price cell
ing than existed heretofore. Last
Summer, for example, local prices
were 50 points over London, which
threatened to bring in other sugars
However, full duty" sugars never
have come in.
Philippine sugar arrivals to date
have approximated their quota. In
addition, however. there are 100000
tons af1oat. The Government has not
yet said what it will do about excess
shipments. The trade believes such
sugars will be put in bonded ware
houses and held to apply to the 1885
quota. Today it is possible to get
Philippine raw sugar on ships here at
290 cents pound, while Puerto Rico
wants $40 cents. But ref1ners are
afraid to buy Philippines because such
sugar may be tied up in warehouses
six months.
Puerto Rico has shipped 70 per cent
of her quota. Hawaii is not factor
in this market. Most of its sugar is
sent to Pacific Coast ports. Cuba,
whose raw sugar now is nominally
quoted here at 160 cents, plus duties,
has shipped only 25 per cent of its
quota. Most shipments are in bonded
warehouses, as Cuba waited to learn
the size of the tariff reduction and
trade treaty changes
tCopyright. 1934)