Review of the New York sugar market

Title

Creator

Cook, Donald A.

Language

English

Source

The American Chamber of Commerce Journal Volume XVIII (Issue No.3) March 1938

Year

1938

Rights

In Copyright - Educational Use Permitted

Fulltext

42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1938 REVIEW OF THE NEW YORK SUGAR MARKET By Donald A. Cook Member, iVi.it' York Coffee & Sugar Exchange Managing. Cartner, S. If. I.ei>j <£- Company, .Manila No. 3 CONTRACT Following a fairly steady market in New York at the end of January when business in both Philippine and Cuban raws was reported done at 3.18, the market turned easier with the turn of the calendar on Cuban selling, with the trade only fair buyers. On February 1, 6,000 tons of Phil ippines were sold to Gulf refiners at 3.18 for early March arrival. The market for futures steadied a trifle the next few days in active trading. How ever, in the raw market the pressure of Philippines afloat and sales from Cuba resulted in considerable trading with buyers cautious. On February 2 the fol lowing transactions were reported: 2,000 tons of Cubas sold at 3.18 and 3,000 tons at 3.17; 3,000 tons of Philippines due early February were done at 3.16, while a trifle later 26,000 bags of Cubas were sold to Gulf refiners for prompt delivery at 3.15. There was further interest at 3-.15 with most sellers holding for 3.18. The futures market remained steady until February 7 when easiness was caused by reports that Puerto Rican strike leaders were favoring the Governor’s peace pro posals. There was active trading on the Exchange at 2.26 for May and 2,292.28 for SANSHIN PLYWOOD SUPPLY Lawan Sen. Oregon Pine Douglas Fir Plywood Telephone 2-91-08 P. O. Box 1262 741 Echague Manila, P. I. Manufacturers E. L. HALL, MANAGER E. E. ELSER AGENCY KNEEDLER BLDG.-MANILA INSURANCE IN FORCE Increased in 1937 by 24 Million Dollars To over $556,000,000 INSURANCE COMPANY KfAfl OFFICE-TORONTO. CANADA Eftoblished I88J TEL. 2-15 O3-O4 September. The trade turned rather bear ish in anticipation of an early settlement of the stevedores’ strike, which was ex pected to release fair amounts of Puerto Kican raws. On February 8, futures again dropped a point for all positions on heavy trading. Spot eased two points to 3.15 and 6,000 tons of Philippines due February 15 were sold to refiners at 3.15. On February 9, and February 10, the market continued to show an easy under tone for futures with continued heavy trad ing. May futures were done as low as 2.22, while September dipped to 2.25. There was consideralbe demand for contracts at these levels but the actual market con tinued under pressure due to unsold afloats. Cuban raws were sold at 3.15 again and 4,000 tons of Philippines due March-April were sold on February 10 at the same price. A smaller parcel for early arrival was re ported done at 3.13. At the close of the first ten days of the month, refiners’ ideas were 3.13 with of ferings at 3.16. With the settlement of the Puerto Rican strike it was believed that generous short covering would be seen in the futures market, while the market for actuals remained dependent on the amount of unsold actuals still to arrive. The next few days the market was quiet and a bit steadier with futures advancing one to two points and raws changing hands at 3.12 and 3.13. On February 16 considerable activity developed on short covering and buying of actuals by operators. September futures advanced to 2.32 and considerable actuals were done at 3.17 and 3.18. Further buying set in the following day at the open ng, causing transaction in September tutures at 2.34 and Philippine raws at 3.30 tor March-April arrival.. However, on this date President Roosevelt at a press conference released a statement that inflation or further dollar devaluation was not contempleted by the Administra tion. This caused a recession in all security and commodity markets and was reflected on the sugar exchange by considerable selling. Early quotations on February 18 proved to be the highest for the month. Cuban operators were aggressive sellers on Feb ruary 19, and on the 20th and 21st both Philippine and Porto Rican raws were done at 3.15. The next few days up until February 25 the market eased off gradually in quiet trading, with September futures done at 2.24 and with raw sugar easing to 3.13 for nearby deliveries and later arrivals at 3.15. Refined demand continued fair but consum ing interests showed no inclination to build up inventories. The last two days of the month showed a steadier trend on the exchange for fu tures, with September moving up to 2.27. The market for actuals was quiet with most business at 3.13. Raw Sugar Futures, No. 3 Contract, Sept. delivery. Last sale, January 31 ............... 2.29 High Sale during February .... 2.34 Low Sale during February ........ 2.24 Closing bid, February 28 .......... 2.27 Net change ......................................... 02 The Second... (Continued from page 13) game, wn.cn wao one-siuediy in favor of Roosevelt up to the last inning, suddenlyturned into a rout, and ended in a tie in the darkness of the Recession. Who will win the second game? Roose velt’s attitude will no longer be that of an amiable contestant but of a ferociously de termined battler who still thinks he has the stuff to win. Markets, Markets... (Continued from page 33) monwealth than they are here. In our memorandum, therefore, our con clusions were: first, developing a knickknacks market in the United States is not objectionable, and should be practicable; and second, pull for an adequate or par tially adequate American and Common wealth merchant marine on the Pacific— get the ships, then think of getting markets with their consistent help. Further' about novelties. Their sale lags because they are not made in great quan tities of standard types. A friend submitted abaca slippers to a business correspondent in New York, an order came back for 10,000 pairs and could not of course be filled. Naturally the order was large, the beaches of America need a million pairs of such slippers. Another experience of our friend was in competitive bids, Japanese underbid him with abaca slippers, of course of our own abaca, with rubber soles: a bci(I’lease turn to page 48) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL

pages

42

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