January sugar review

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Part of The American Chamber of Commerce Journal

Title: January sugar review
Creator: Fairchild, Geo H.
Language: English
Year: 1936
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Fulltext: February, 1936 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 JANUARY SUGAR REVIEW By GEO. H. FAIRCHILD New York Mahket: Philippine sugar was rather held at the pre mium at the opening of the month, as was the case at the close of the previous month, when 8,000 tons Phil ippines for JanuaryFebruary shipment were sold on the 2nd at 3.30 cents, at which price several parcels of afloat and January shipment sugars were offered by others without finding buyers. It is significant that although small sales of Cubas ex-store New York were made at 3.30 cents on the same day, 2,500 tons for February shipment were subsequently sold to operators at 2.28 cents c.&f., representing a discount of 12 points for the later position. As had been generally expected, the U. S. Supreme Court in its decision rendered on Jan uary 6 invalidated the AAA. As a result quo tations on the Exchange on the 6th sagged from 17 to 19 points. In view of the uncertainty of the sugar situation, business in actual sugar was virtually paralized. Small sales of Cubas during the week were made on the basis of 3.10 cents ex-store New York, and 3.15 cents for prompt shipment Puerto Ricos, while operators bought on the 9th a parcel of May shipment Cubas at 2.20 cents without any guarantee as to alteration in duty, which would revert to 1.50 cents instead of .90 cents should the quota provisions of the Jones-Costigan .Act be declared inoperative. After the first reaction caused by the announcement of the C. S. Secretary of Agriculture on the continuation of the quota provisions of the Jones-Costigan Act, quotations on the Exchange again declined and distant deliveries in particular receded to levels only slightly over the closing level on the Gth. Values of actual sugar during the week improved slight ly and duty-free sugars were sold on the basis of 3.15 cents for ex-store, afloat and FebruaryMarch shipments. The third week was characterized by heavy business in actual sugars. Philippine sugar for Jan uary-February-March shipments and afloat were sold early in the week at 3.15 cents and later at 3.25 cents while prompt shipment Cubas were sold at 2.30 cents without any guarantee as to alteration in duty. Quotations on the Exchange at the close of the week showed a substantial improvement, being 14 to 17 points above the closing level of the previous week. It was reported that the advance was caused by a change inlpolicy on the part of a large New York operator who became a strong buyer for two days, while it was also believed that the fear of currency inflation encouraged by the passage of the Vete rans’ Bonus Bill in Congress materially contri buted to the advance. This improvement was checked, however, by pressure to sell on the part of Cuban holders who feared an increase in import duty. The market was extremely active during the fourth week with moderate sales of Puerto Rico and Cuban sugars and heavy sales of Philippines at advancing prices ranging from 3.25 cents to 3.38 cents. As a natural reaction, however, the market was quieter at the close of the week with buyers generally indifferent to making further purchases. The improvement in the market was credited to the general impression that despite the invalidation of the AAA, the U. S. import quotas will be maintained. Quo tations on the Exchange during the week gradual ly advanced, showing gains of six points at the close of the week over those of a week previously. Further heavy sales of Philippine sugar were made during the last week at prices ranging from 3.35 cents afloat to 3.45 cents for AprilMay shipment. As was the experience during the previous week, buyers became generally indifferent at the close of the week after having made heavy purchases. At the close of the month, quotations on the Exchange declined 2 to 3 points as compared with the previous week. The refined sugar market was irregular and the price was reduced on the 6th to 4.75 cents and a week later again to 4.65 cents, while the Sucrest Corporation, a new refinery recently erected in Brooklyn, commenced offering granulated for May-June delivery a 4.30 cents. A discon certing factor in the situation was the continued uncertainty regarding the fate of the processing taxes. This was evidenced by two separate prices quoted by a prominent Eastern refiner, according to whether processing taxes (or other similar taxes) were payable or not. It was also Ca 1 a in ba Sugar Estate Manufacturers of: Sugar—Copra Products Canlubang, Laguna, Philippine Islands Painpanga Sugar Mills Manufacturers of Sugar Del Carmen, Pampanga, Philippine Islands Manila Offices: G. de los Reyes Bldg. 6th Floor Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1936 persistently rumored in New York that there was a possibility of substituting some form of re troactive taxes which would be equal to the pro cessing taxes already collected. The price of refined during the last week was further reduced to 4.55 cents, ex-processing taxes. Futuie: Quotations on the Exchange during January fluctuated as follows: High Low Latest January.................... .......... 2.41 2.00 2.33 March....................... .......... 2 39 2 00 2.35 May.......................... .......... 2 41 2 04 2.36 July...................................... 2.44 2 07 2.38 September........................... 2 46 2.11 2.41 November............... ............ 2.46 2 16 2.41 January (1937)................... 2.27 2.22 2.22 Stocks: Latest stocks in the United Kingdom, United States, Cuba, Java and European statis tical countries were 5,797,000 tons compared with 7,211,000 tons the same time last year and 7,658,000 tons in 1934. Philippine Sales: Sales and resales of Philip pine sugar in New York during the month amount ed to: Sales Tons 176.400 Prom To 3 15-3 45 Resales. 32,000 3 35-3.45 Local Market: In sympathy with the advance in price\s in Nevv York, the market for export sugar during the first week advanced from P7.50 to P7.55 per picul at which levels fail business was done. During the second week, the local export market was very irregular, some buyers having with drawn and others having raised their prices hoping for an advance before long. At the close of the week, however, the maximum price that could be obtained was P7.25 per picul, with buyers showing little interest. Despite the invalidation of the AAA and the abolition of the processing tax on domestic consumption sugar, the domestic market was even stronger than be fore espcially in cases where immediate delivery could be given, which, however, was only possible in the case of very few holders who still had oldcrop sugar. Sales of first-class washed sugar BONDS INSURANCE All classes acceptable to United Fire and every States and Philippine other kind of Governments insurance Fidelity and Surety Company OF THE Philippine Islands GEO. C. DANK WERTH E. B. FORD President Vice-President P. M. POBLETE SIMEON REYES Sec.-Treasuier AssL Secretary-Treasurer MONTE DE PIEDAD BUILDING Plaza Goiti Tel. 2-12-55 Manila, P. I. were made at P8.50 per picul and were being resold in the Divisoria market at as high as 1 * 9.20- P9.25 per picul. As was already reported last month, Executive Order No. 899 requiring the filling of export sugar before manufacture of domestic consumption sugar might commence explained the scarcity of sugar for domestic consumption. Duiing the third week the local export market continued to be irregular at prices ranging from 1 * 7.25 to 1 * 7.75 per picul, although most large buyers only quoted 1 * 7.35 to 1 * 7.50. The confused situation of the domestic market during this week owing to difficulties of obtaining new-crop supplies forced buyers to make handto-mouth purchases in the hope that prices would decline when permits for new-crop sugar were released particularly in view of the outlawing of the processing taxes. On the other hand fears were entertained in sugar circles as to the probable shortage in the supply for domestic consumption sugar, there being insufficient cane to cover both export and domestic quotas. During the fourth week heavy business was transacted in the local export market in sym pathy with the New York market, large quan tities of sugar having ben sold at prices ranging from 1 * 7.75 to 1’8.00 per picul. At the close of the week, however, quotations reverted to 1 * 7.75-1 ’7.95 per picul in view of the refusal on the part of some important buyers to pay the prices asked by holders. A similar develop ment occurred in the following week when large quantities of sugar changed hands in the local export market, mostly at 1’8.00 per picul. As exporters had reduced their quotations to 1 * 7.80 per picul, however, holders became uninterested in selling further. A definite step was taken by the Domestic Sugar Administration to expedite the validation and issuance of permits for domes tic sugar through the proposal for the appoint ment of central managers as Permit Agents for the Sugar Administration. Up to the present time, however, as arrangement has not yet been consummated. During the last week, a shortage in supplies for immediate delivery, particularly of ordinary mill-run sugar, was felt, for which Chinese were willing to pay 1’7.80 per picul, ex-ship Manila. Philippine Exports: According to reliable advises, Philippine sugar shipments to the United States during January amounted to 67,828 long tons of centrifugal and 3,535 long tons of refined. The aggregate shipments of these two classes of sugar for the first three months of the crop year 1935-36 follow: Long Tons Centrifugal............................. 116,134 Refined................................... 3,558 Total............................... 119,692 The Story of Baguio Gold (Continued front page 22) his resignation, Geringer issued a statement repoi tingthat Baguio Gold was working consistent ly and economically in all departments; that the policy of the company had been one of steady, conservative operation; and that the companies’ properties were in excellent condition. He said that exploration plans were being carried out along lines decided for over 2 years, and that development was moving ahead on schedule. Production for 1935 was 1’879,848—slightly lower than 1934; the average values per ton were lower, the increase in price of gold from 320.67 an ounce to 335 made it profitable to mine ore which at the lower price could not be handled economically. Tonnage was higher, and both mining and milling conditions were entirely sa tisfactory. Monthly production has been increasing slowly since November, 1935, when it was 1’76,375; in December it was 1’80,990, and in January, 1’89,000. Effective January 31, 1936, P. A. Meyer became president of Baguio Gold. REAL ESTATE By P. D. CARMAN Addition Hills January sales, the best total during the past five years,continue the mark ed improvement of last year and its 23.6% in crease over 1934. Sta. Cruz...................... Sampaloc...................... Tondo........................... Binondo........................ San Nicolas.................. Ermita.......................... Malate.......................... Paco.............................. Sta. Ana....................... Quiapo.......................... San Miguel................... Intramuros................... Pandacan..................... Sta. Mesa..................... San Felipe Neri........... .Shift’s City of Manila December January ia.15 lO.iG 92,011 I * 285,463 156,199 645,571 445,739 82,268 15,500 18,000 — 14,188 18,321 103,050 169,653 94,814 15,895 39,140 26,789 33,814 16,560 19,238 4,623 — ___ ___ 1,900 630 1’ 961,290 1 * 1,338,076 IN RESPONDING TO ADVERTISMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL