September sugar review
Media
Part of The American Chamber of Commerce Journal
- Title
- September sugar review
- Creator
- Fairchild, George H.
- Language
- English
- Year
- 1928
- Rights
-
- Fulltext
- October, 1928 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 SEPTEMBER SUGAR REVIEW By George H. Fairchild vember-December shipment at 10- c.i.f., equiv alent to 1.98 cents f.o.b. Cuba (3.87 cents 1. t.). The world’s stocks are 2,468,000 tons as com pared with 2,479,000 tons a year ago and 2,466,000 tons in 1926. Last year, the world consumed 1,600,000 tons of sugar in excess of the consumption in the previous year, which tonnage is about double the normal annual increase—800,000 tons. The world’s sugar crop last year was 1,429,910 tons in excess of the previous year’s or 171,090 tons less than the consumption, showing that the shortage must have come from the unknown “invisible stocks,” justifying the assumption that they are now at a lower ebb than a year ago at this time. Should the volume of the world’s crop next year be about the same as this year’s, and consumption no more than normal, there would seem to be no justification for the present price level. According to cable advices, the European sugar crop will not be in excess of last year’s and while Cuba may harvest 5,000,000 tons, there is serious doubt in some quarters whether the crop will reach this estimate. While some people prophesy 1,000,000 tons of beet crop in the United States, others predict 750,000 tons. Undoubtedly, Java’s crop will be around 3,000,000 tons, and Hawaii will harvest over 800,000 tons, but the world crop may not be 800,000 tons in excess of the previous year’s crop, which it should be to take care of the normal annual increase in consumption. If the foregoing calculations are substantially correct, it is quite clear that the statistical position does not explain the prevailing low prices at this time, but there are other factors at work which are even more potent than statis tics upon which the world has been accustomed to rely in the past. Futures: On the New York Exchange, quotations for futures have fluctuated in sym pathy with the spot market and declined to 10-25 points as may be seen from the following: New York Market-. For the month under review the American sugar market continued in a depressed condi tion, prices having de clined further to the lowest level since 1925. With the publication of favorable reports re garding the growing beet crop in Europe, the market was practically inactive during the first week, only insignificant sales of Cubas were effected on the 6th and 7th at 2-5 16 cents c. and f. (4.08 cents 1. t.) and 2-1 4 cents c. and f. (4.02 cents 1.1.), respectively. On the 10th the market became still weaker and prices sagged to 3.99 cents 1. t., while on the following day small sales of Cubas were reported at 2-3 16 cents c. and f. (3.96 cents 1. t.). Thereafter, the market was in a more or less demoralized condition with prices de clining until on the 20th when a small quantity of Cubas was sold at 2-5 32 cents c. and f. (3.93 cents 1. t.) being the lowest price reached since 1925. The market showed a slight improve ment on the 21st and prices rose to 2 -3 16 cents (3.96 cents 1. t.). It became firmer in the next three days with reported sales in dock at 2-7 32 cents c. and f. (3.99 cents 1. t.). Since then until the close of the month the market reverted to its former depressed condition with sales effected at 2-5 32 cents c. and f. (3.92 cents 1. t.). Yesterday (Oct. 2) cable advices reported that sales were made at 3.89 cents 1. t. ex store in New York and that the United Kingdom had bought new crop Mauritius sugar, No Manila to New York via Suez and Europe See the Old World on your trip home. Stops of several days in many ports. You can travel through Europe and catch our boat for New York via Southampton, England, at Bremen. “The Most Interesting Trip In The World.” NORDDEUTSGHER LLOYD Zuellig S’ von Knobelsdorff Agents 90 Rosario, Manila Phone 22324 r AMERICAN MAIL LINE DOLLAR STEAMSHIP LINE COMBINED TRANSPACIFIC SERVICE SAILING ONCE A WEEK The “President” Liners Offer Speed—Service—Courtesy—Comfort Excellent Food, Comfortable Cabins, Broad Decks, American Orchestra, Dancing, Swimming Pool, Sports SAILING ONCE A WEEK TO SAN FRANCISCO AND LOS ANGELES via Hongkong, Shanghai, Kobe, Yokohama, and Honolulu SAILINGS ON ALTERNATE FRIDAYS ROUND THE WORLD VICTORIA AND SEATTLE via * Hongkong, Shanghai, Kobe, and Yokohama SAILINGS ON ALTERNATE SATURDAYS President Polk - - President Adams - - - - President Garfield President Harrison - President Monroe - President Wilson - Sailings every fortnight Oct. 24 Nov. 7 Nov. 21 Dec. 5 Dec. 19 Jan. 2 24 Calle David MANILA Telephone No. 2-24-41 L IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1928 September. December. January. . March. . . . May.......... July September. lli.jh 2 22 2 33 2 34 2.33 2.40 2.47 2.43 Low 1.96 2.06 2.08 2.11 2.18 2.26 2 ’34 Lattst 1.96 2.07 2.10 2.13 2.21 2.29 2 36 Philippine Sales at 3.99 1. t. During the month under ns of Philippine centrifugal sold in the Atlantic coast Local Market: In view of the adverse reports on the situation of the American sugar market, the local market for centrifugal sugars was weak and inactive during the month under review, with insignificant transactions. Ex porters’ quotations ranged from P9.25 to Pl0.00 per picul. For local consumption, Chinese dealers offered from P10.00 to P10.40 per picul. In the muscovado market transactions were restricted to very small parcels on the basis of P6.50 per picul for No. 1. Crop Prospects: During the month of September, particularly in the latter part, there has been a continuous drizzle which, in some places on Luzon, may affect the purities of the cane. Reports from Negros are to the effect that the northern part has suffered a dry spell whereas in the southern portion of the island there has been too much rain. It is the consensus of opinion, however, that the crop on that island will be normal and may exceed the previous one by 10 per cent. Philippine Exports: Exports of sugar from the Philippines for the 1927-1928 crop from November 1, 1927, to September 30, 1928, amounted to 542,609 metric tons, particulars of which follows: .Muwofu.,.,1* rob» ll,fio..l Total November.. . . 14,101 506 69 14,676 December... 55,455 ------- 172 55,627 January.......... 85,123 February.. . . . 74,643 March............. 67,578 April................ 81,785 May................ 45,060 June................. 47,295 July................. 16,638 August............ 9,508 September*... 5,060 643 405 86,171 3,350 380 78,373 11,545 754 79,877 5,784 582 88,151 6,122 920 52,102 5,568 899 53,762 632 690 17,960 871 471 10,850 5,060 Total. ... 502,246 35,021 5,342 542,609 ^Incomplete report. Annual Convention: The Philippine Sugar Association had a very successful Convention this year. The outstanding problem for dis cussion was the threatening menace to the industry by the introduction of discriminatory legislation in the Congress of the United States in the form of the Timberlake Resolution. All through the deliberations of the convention the sugar men, business men and the govern ment officials were unanimous in their protests against such discriminatory legislation on the ground that it violates the American principles of free trade, because so long as the Philippines is under the American flag it is entitled to the same protection and consideration as are accord ed to the other territories of the United States; that it is unfair and unjust to the Filipino people who have been chided for their backward indus trial and agricultural development and en couraged, if not at times goaded, to exert them selves to develop the sugar industry in these Islands by the introduction of modern methods long in vogue in Continental U.S.A., Hawaii. Java, Porto Rico and Cuba; that it would nullify the efforts which the United States is making toward cultivating the spirit of goodwill and co operation in the conduct of the government of the Philippines, and thereby inducing the people of the Islands to produce the tropical products for the supply of which the United States is becoming more dependent each year on the ambi tious and competitive efforts of foreign pro ducers; and, lastly, that it would be detrimental to the consumers of tropical products in the United States. The pamphlet entitled “Facts and Statistics about the Philippine Industry” prepared by a Special Committee composed of Messrs. Geo. H. Fairchild, Felipe Buencamino, Jr., and Rafael Corpus, as a preliminary measure to combat the Timberlake Resolution, is now off the press and approximately 5000 copies have already been distributed in the Philippines and in the United States. 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