May sugar review

Media

Part of The American Chamber of Commerce Journal

Title: May sugar review
Creator: Fairchild, Geo H.
Language: English
Year: 1934
Rights
Fulltext: June, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 THE RICE INDUSTRY By Percy A. Hill of Mufloz, Nueva Ecija Director, Rice Producer’s Association On June 10 prices for palay per cavan of 44 kilos at primary markets ranged from Pl.75 to Pl.95 according to grade. Luxury rice per sack of 57 kilos brought P4.50 to P4.90, macans P4.20 to P4.40. Selling was heavy, for taxes and elec tion expenses and repay ment of bank loans, dur ing the first part of June. The market is now quiet. Conditions affecting the next crop are very good owing to the early sea sonal rains, if nothing happens by way of drought at planting time the next crop should be normal. The trip from Pacific Coast (Vancouver) to Atlantic Coast (Montreal or Quebec) is made in four days in the luxurious trains of the Canadian Pacific Railway. ONLY 3 TO 4 DAYS OCEAN TO EUROPE Via St. Lawrence Seaway! Sail from Montreal or Quebec and enjoy 2 days on the smooth St. Lawrence. Then, only 3 to 4 days more to British and Continental ports. Regular sailings: Empress of Britain, size-speed-SPACE marvel. Famous ‘’Duchess” liners for smart economy. Popular “Mont-ships” for solid comfort, low cost. Attractive, low-priced Tourist and Third Class on all ships. YOUR INQUIRIES ARE INVITED CANADIAN PACIFIC WORLD’S GREATEST TRAVEL SYSTEM Area planted in central Luzon will be somewhat larger than it was last year, and the demand in the southern provinces for rice will be erratic. The generous sugar quota the United States allows the Philippines this year will hold rice prices up somewhat, but demand will fall off in other export-crop regions. But coming back to fundamentals, there will never be any renaissance here, any turning to new crops or means of sup plying overseas trade, until the sugar and other quotas are abolished. This seems axiomatic in tne Philippines. There will be no adjustment until economic pressure forces it. Hope will encounter a steadily declining market. This market, sustained artificially by returns of money to the Philippines conceals this danger— that of ending the remittances by sudden de clines in America’s requirements. Japanese are taking over the distribution of of rice, especially in the southern islands, since the beginning of this year, a business formerly carried on by Chinese merchants. The in novation will continue, and to a certain extent it affects the old channels through which exports moved to market. FOR THESE GOOD REASONS... GO. EMPRESS Reason /...Record size. Reason 2...Record speed. Reason 3... Luxury of Pacific and Atlantic standards. More Reasons...? Ask anyone who’s made an “Empress" crossing! Fortnight ly sailings from ORIENT TO VICTORIA AND VANCOUVER Choice of 2 Routes... Direct Express: Empress of Asia and Empress of Russia make trans pacific crossing from Yokohama in 9 days. Via Honolulu; Empress of Japan (largest, fastest liner on Pacific) and Empress of Canada add but three days to the journey.... First and Tourist Class. Also, Third Class. RAILWAY SERVICE ACROSS CANADA MAY SUGAR REVIEW By Geo. H. Fairchild New York Market: The improvement in the market noted in the latter part of the pre vious month was main tained during the month under review. Philippine sugar afloat and for May shipment was sold during the first week at 2.75 cents to 2.80 cents, Cuban sugar at 1.40 cents to 1.42 cents c. and f. and Puerto Ricos at 2.75 cents. Favour able news early in the week from Washington caused the Exchange quotations to advance 3 to 4 points on the 2nd. At the close of this week another advance of 3 to 5 points was registered on the Exchange. A further improvement took place during the second week when Philippines afloat were sold at 2.82 cents to 2.83 cents and Puerto Ricos for June shipment at 2.85 cents. Although op erators bid for Cuban sugar for June shipment at 1.53 cents c. and f. on the 7th, business was done on the basis of 1.47 cents c. and f. for sugar at hand. After showing a net gain on the 9th of 6 to 7 points, quotations on the Exchange at the close of the week recorded a net loss of 5 to 7 points against the closing quotations of the previous week, as the result of the uncertainty which developed and pending the issuance by Secretary Wallace of quota regulations in con nection with the Jones-Costigan sugar control act which President Roosevelt signed on the 9th. Upon signing this act, President Roosevelt issued a proclamation that the import duty on Cuban raw sugar would be reduced to 1.50 cents per pound effective on June Sth. The price of cane refined sugar was reduced on the Sth to 4.20 cents per pound, while that of beet refined was reduced to 4.00 cents on the 9th. OXYGEN Compressed Oxygen 99.5% pure HYDROGEN Compressed Hydrogen 99.8% pure ACETYLENE Dissolved Acetylene for all purposes WELDING Fully Equip ped Oxy-Ace tylene Weld ing Shops. BATTERIES Prest-O-Lite Electric Stor age Batteries Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1934 May Sugar Review CHARTERED BANK OF 7his™al,a Capital and Reserve Fund............................................... £6,000,000 Reserve Liability of Proprietors.................................... 3,000,000 MANILA BRANCH established 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Every description of banking business transacted. Branches in every important town throughout India, China, Japan, Java, Straits Settlements, Federated Malay States. French Indo-China, Siam, and Borneo; also in New York. Head Office: 38 Bishopsgate, London, E. C. C. E. STEWART, Manager, Not Merely Travel When you plan a trip, either on business or for pleasure, consider the means of transpor tation as carefully as you consider your journey. Look for Comfort and Safety in a dependable means of Transportation. These are important features found in Ma nila Railroad coaches which are provided with all travel conveniences. For parties preferring to travel by train a RE CREATION CAR appropriate for Dancing and Music during the trip is furnished without addi tional charge. Our Bus Service for Excursions and Sightseeing trips is second to none. Our equipment is of the latest type. It pays to investigate what the Manila Railroad has to offer in the way of travel comfort, safety, and service either by train or motorbus. Remember Also our RADIO and TELEGRAPH SERVICE is offered to you when other means of communica tions are not available in your hours of need. For further information, inquire from the local station agent or call up Telephone 4-98-61, Central Office, 943 Azcarraga, Manila. Manila Railroad Company The market was quiet and uncertain during the early part of the third week, only insig nificant transactions in P. I. and Puerto Rican sugars having been made at 2.80 cents. The improvement resulting from the inflationary silver measure was reflected in the markets in general and more business in sugar occurred during the latter part of this week at unchanged prices. Weakness developed later, however, influenced by the statistical position being against the market, and there were no buyers of duty-free sugars at the close of the week at 2.80 cents. Pending the announcement by Secretary Wallace of the quotas to be allocated to the various non-continental areas, the market remained auiet with a declining tendency during the fourth week. Transactions in prompt shipment Cubas were made at 1.43 cents c. and f., while prices of Puerto Ricos declined to 2.75 cents. The Secretary of Agriculture on the 21st imposed a tax of about 3 cents per bag U. S. currency retroactive to May 9th on all sugar bags imported from the Philippines into the United States to protect cotton. Accord ing to informal advices received in Manila from Washington, the tax on sugar containers must be paid by the person who owns the sugar and container at time of withdrawal from customs custody and control. Whether or not this tax will have to be borne by U. S. buyers, under the provisions of Section 18 of the Agricultural Adjustment Act, “must be determined from the contract itself”, according to Washington advices. In anticipation of the announcement by the Secretary of Agriculture of the quotas for non continental areas, Exchange quotations ad vanced on the 26th. This advance, however, was practically wiped out on the 29th as the result of hedging by Cuban holders combined with unrest in Cuba. The actual sugar market remained steady and quiet with insignificant transactions in futy-free sugars being made at 2.80 cents to 2.75 cents. The Cuban and in sular quotas which were finally issued by the Secretary of Agriculture on May 31st, are as follows: Short Tons Cuba............................. 1,902,000 Philippine Islands....... 1,015,000 Hawaii........................... 917,000 Puerto Rico.................. 803,000 Virgin Island............... 5,000 Futures: Quotations for future deliveries on the Exchange fluctuated during May as follows: July........................... September................. December................. January..................... March....................... May........................... High Low Latest 1.59 1.49 1.55 1.65 1.55 1.61 1.72 1.62 1.70 1.74 1.63 1.71 1.79 1.68 1.76 1.82 1.71 1.80 Stocks: Stocks in the United Kingdom, United States, Cuba, Java and European statis tical countries as reported May 24th were 8,028,000 tons as compared with 8,186,000 tons at the same time last year and 8,154,000 tons in 1932. Philippine Sales: Sales and resales of Phil ippine sugar were reported in New York during the month as follows: Cents per Pound Long Tons From To Sales......................... 85,000 2.75 2.83 Resales..................... 14,500 2.75 2.80 Local Market: In the belief that under the retroactive clause of the Jones-Costigan sugar control act the shipments of Philippine sugar to the United States up to May already exceeded whatever quota may be allotted to the Philippines, the local market during the month has been practically inactive due to unwillingness of exporting houses to commit themselves until the Secretary of Agriculture has issued rulings and regulations as to the operation of the sugar control act. The nom inal quotation during the first week in the export market was P6.00 per picul, but speculators were able to secure small parcels at prices as IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1934 May Sugar Review (Continued from page 28) low as 1 * 5.00 and they later bid down to P4.00 per picul. No business was transacted, how ever, at this level. Lack of interest on the part of buyers for local consumption contributed also to the inactivity of the market. (*)Compilcd by the Philippine Sugar Association, June 9. 1934. (a)Have finished grinding. Crop Prospects: The latest information re ceived by the Philippine Sugar Association as regards the 1933-1934 crop disclosed that the current season will yield an aggregate of 1,392,967 long tons. The productions of the centrals which have finished milling and the estimates of those which are still grinding are shown in the attached compilation. The sub-allocation of the Philippine quota of 1,015,000 short tons or 906,250 long tons among the various producers in the Islands is expected to be announced by the GovernorGeneral at any time now. It is gathered that sugar producers are very anxious to know the basis of this sub-allocation as well as the parties who will be entitled to quota, especially in the case of purchased canes the producers of which cannot be traced and the status of planters who have no milling contracts with sugar companies. Philippine Exports: The sugar exports for the month of May as reported to us by private sources, amounted to 124,634 long tons of centri fugals and 5,079 long tons of refined or a total of 129,713 long tons. The aggregate exports for the first seven months of the current crop year beginning on November 1, 1933, and end ing on May 31, 1934, follow: Long Tons Centrifugals.................. 1,025,203 Refined......................... 56,706 2. 3. 5. Total..................... 1,081,900 ACTUAL PRODUCTION AND ESTIMATES FOR THE 1933-1934 CENTRIFUGAL SUGAR CROP( * ) Short Tons Lone Tons Bacolod-Murcia Milling Co. (a) Binalbagan Estate, Inc.......... (a) Central Azucarera de Bais .. Central Azucarera del Danao Central Bearin......................... Central Leonor........................ Central Palma..........................(a) Central San Isidro....................(a) Hawaiian-Philippine Co........ (a) Isabela Sugnr Company, Inc (a) La Cariota Sugar Central. .. (a) Lopez Sugar Central Mill Co. Ma-ao Sugar Central Co....... (a) North Negros Sugar Co..., .. San Carlos Milling Co............ San Isidro (De la Rama) .... Santa Aniceta (De la Rama). Talisay-Silay Milling Co....... (a) Victorias Milling Company .. Total for Neohos.......... Tons Long Tons 69,595 62,138 72,188 64,454 55,777 49,801 16.745 14,951 16.535 14,763 20. 21. v.nianioa ougar instate.......... t 22. Central Azucarera de Calatagan .....................................(a) 23. Central Azucarera de Tarlac.. (a) 24. Central Azucarera del Norte..(a) 25. Central Azucarera Don Pedro...................................... (a) 26. Central Luzon Milling Co. .. (a) 27. Hind Sugar Company............. (o) 28. Luzon Sugar Company.......... (a) 29. Mabalacat Sugar Company.. (a) 30. Mount Aravat Sugar Co....... (a) Bataan Sugar Co.....................(a) Calamba Sugar Estate.......... (a) 6,080 79,367 8.746 99,840 4,316 54,585 44.788 5.578 33)06 31. Nueva Ecija Sugar Mills ... (a) 5,500 32. Pampanga Sugar Dev. Co.. . (a) 100.342 33. Pampanga Sugar Mills............(a) 92.634 34. Paniqui Sugar Mills................. (a) 15,757 35. PhilippineSugar Estates Dev. Co............................................. (a) 9,844 Total for Luzon.......... 556,692 5,429 70,863 7,809 89.143 3.854 8,789 497.047 36. Asturias Sugar Central.......... 37. Central Lourdes.........................• 38. Central Santos-Lopez............. 39. Central Sara-Ajuy................... (a) 40. Philippine Sturch and Sugar Co............................................(a) 41. Pilar Sugar Central................. (u) Total for Pa nay......... 42. Philippine Milling Co. .(a) 13.679 12,213 Total for Mindoro .. 43. Bogo-Mcdcllin Milling Co. .. 44. Cebu Sugar Company............ Total for Cedu........... 45. Ormoc Sugar Company.......... 46. Rosario Sugar Milh................ 12.795 17.564 82,063 13.679 12,213 18.613 16,619 13,933 12,440 11,205 2,000 13.205 Total for Leyte. ........ 14,790 Grand Total......... 1.560.125 1.392.967 INSURANCE For Every Need and Purpose FIRE WORKMEN’S COMPENSATION AUTOMOBILE MARINE ACCIDENT BAGGAGE PLATE GLASS Atlas Assurance Co., Ltd. The Employers’ Liability Continental Insurance Co. Assurance Corporation Ltd. Orient Insurance Company General Agent E. E. ELSER Telephone 2-24-28 • • Kneedler Building THE YOKOHAMA SPECIE BANK — ■ ------- LTD. ■ = (ESTABLISHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up) - - - - 100,000,000.00 Reserve Fund .... 122,750,000.00 Undivided Profits .... 7,648,164.33 MANILA BRANCH 34 PLAZA CERVANTES, MANILA S. DAZAI Manager Telephone 23759—Manager Telephone 23755—Account A Cashier Telephone 23758—Export <1 Import Dept. Telephone 23768—Deposit <1 Remittance Dept. R U B B E R Superior Qualify Dependable Service RING UP 2-18-01 the next time you need a Rubber Stamp and our Salesman will do the rest ■a fc^TTT r OTrri Sales Office: 2nd Floor IO1 Escolfa s T A M P S IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL