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Show SUGAR PRICES IN 1915 Factors Contributing to Prosperous Condition for the Domestic Industry Tho European war continued lur-lnp; lur-lnp; 1915 to bo tho dominant factor nffcctlnp; sugar pricea. With tho output out-put of beet sugar in continental lur-opo lur-opo largely reduced and with puch European supplies aa existed locked up In tho countries of production thru tho conditions created by tho wur, tho burden of satisfying tho world's sweet tooth fell In larger measure than for many decades past upon tho enno producing countries. Cuba In particular, possessing by far the largest oxportablo surplus of nny country In tho world, found a strong demand for Us product nrlslug from Circat Britain and Franco Instead C depending aa usual almost entirely upon tho American market. With Cubnn and domestic crops reaching a total of over four and a half million long tons, or approximately throo quarters of a million tons more than total requirements for American consumption, con-sumption, this situation was Important Import-ant to American sugar producers, it lightened tho stress of Cuban competition com-petition which otherwise would havo boon felt in full effect by tho American Ameri-can market, and would have resulted in a low level of prices throughout tho year. At tho beginning of tho year tho sugar trado was Inclined to look for lower prices. It wns known that during dur-ing tho preceding months Great Britain Brit-ain had taken half a million tons "f Cuban ond Javan sugars and had con-traded con-traded for additional largo amounts from both these islands. It was assumed, as-sumed, thereforo, that British demand de-mand was supplied for somo months to come. With an unexpectedly Inrgo domestic production and a heavy Cuban crop, It wns felt thnt a lovol somewhat below that of tho closing months of 1914 would bo maintained well Into tho now year. Before tho end of January, however, It waa realized re-alized that tho Cuban crop was moving mov-ing to market much more slowly than usual. Adverse weather conditions at tho beginning of tho grinding season sea-son and lack of shipping to. movo Cuban Cu-ban supplies to tho United States, resulting re-sulting In high transportation ratos, wcro refloctod In a scarcity of stock's for the seaboard refiners and led to a sharp upturn In prices at tho beginning be-ginning of February. Tho bulk of tho domestic beet crop had bpen disposed dis-posed of .during tho latter part of 1914 when it had brought about a great reduction in prices, and the remainder re-mainder of this crop was not moving to market rapidly enough to prevent an advance. With tho coming of better wcathr conditions In Cuba and an Improvement Improve-ment In tho shipping situation, tho upward movemont lost much of Its momentum, but prices continued to advance from time to tlmo. Throughout Through-out the summer months from tho beginning be-ginning or May to tho latter part of July tho quotation on refined sugar was maintained steadily at G cents, or a net cash prlco of G.8S cents a pound, tho refiners absorbing tho relatively re-latively slight lluctuations In tho price of raw, nnd maintaining their margin at about ono cent a pound. Large Beet Acreage and Output Duo to tho stimulus of rolatlvoly high prices bought about by tho European Eu-ropean war tho ncreago planted to bests In tho United States In tno spring of 1915 wns larger than over before, and Indicated a probablo crop ono hundred thousand tona or moro abovo tho best previous record of tho beet industry. With a greatly Increased In-creased acrcago and Rood growing conditions in California, it was natural nat-ural that California sugar should bo gin to movo to market very promptly prompt-ly after tho opening of tho beet sugar su-gar campaign in July, nnd that it should exercise n mqro pronounced effect than usual upon prices. At tho end of July Wlllctt & Orny's Sugar Trado Journal noted a decllno In tho prlco of sugar in Denver and surrounding sur-rounding territory, and attributed this to offerings of new crop California Califor-nia sugars In this market. At tho samo tlmo it ventured tho prediction that before tho mlddlo of August theso sugura would bo offered in tho Missouri rlvor and Chicago markets. This prophecy was fully realized, and by tho third week In August Califor-nla Califor-nla beet sugar was on salo In Philadelphia, Phil-adelphia, Boston nnd other Atlantic coast points where beet sugar seldom appeared In previous years. Undor dato of August 27 tho I'hlindolphla Public Ledger, reporting tho salo of 100,000 bags of California beet sugar sug-ar in that city, said: "This beet sugar consignment was immediately offered to tho trade at $5.30 a hundred pounds in competition competi-tion with can sugar at $5.00 , with tho result it wns said, that virtually virtual-ly tho cntlro nmount was contracted for. With added consignments on (ho way conlldenco that still lower prices will shortly prevail Is expressed express-ed on every hand. Beet Sugar Reduces Prices Tho amounts of beet Bugar offered In Eastern markets rapidly Increased as moro and moro beet factories bo-gan bo-gan operating. Under tho lnfluenco of theso continued offerings at 25 to 45 points below refiners' quotations, the prlco of nil refined sugars gradually gradu-ally declined until by tho end of tho third week In September U had reach-od reach-od a low point of 4.70 cent a pound oa compared with G.88 cents during tho earlier part of tho summer, or a reduction of over a cent a pound, duo chiefly' to tho competition of tho homo grown product. Ono factor that undoubtedly carried car-ried this docllne in prices to an extreme ex-treme which it would not have reach-ed reach-ed otherwlso was tho Impending prospect pros-pect of froo sugar on May 1, 191G. Domestic beet Interosts naturally desired de-sired to' market their product as far as posslblo In advance of this dato, nnd tho importing refiners were inclined to look with complacency on E this tendency as Hkoly to reduco to a ncgllRiblo point competition from this source later on. Tho result was that tho oxtremo low level reached nt the beginning of October marked what may be described as nbnormal or panic competition. A number of important influences soon camo Into play which tended to neutralize this abnormal depression. One of theso was tho announcement mado by Secretary of tho Treasury, McAdoo, early In October that ho would recommend tho continuation of tho Import duty on sugar, which relieved tho fear that tho cntlro beot sugar crop would ho rushed to mar ket and to somo extont lessened tho nctuav prcssuro from, this sugar. Tho slides in tho Panama canal which interrupted trafllo and delayed tho arrival of Hawaiian cargoes, forcing forc-ing theso to take tho long routo via tho Straits of Magellan, also had an infiuonco aa did a recurring scarcity scarc-ity of tonnago which sent freight ratca soaring onco moro and prevented prevent-ed tho prompt shipment of supplies from Cuba. Purchases for foreign account, ac-count, principally for Great Britain and Franco, but also In lessor vol-umo vol-umo for other European countries, were resumed and operated to ro-movo ro-movo nny fear of an ovcrsuppiy for tho domestic market during tho early ear-ly port of 1910. Tho combined lnfluenco of theso served to bring a recovery of prices during tho final weeks of tho year, so that tho twolvo month closed with u.uotntlons t approximately tho samo level that they had maintained during dur-ing tho early part of summer season. sea-son. Tho yearly avcrago net cash quotation of tho seaboard roflnors tor granulated sugar was G.5G77 cents a pound, whllo tho avcrago prlco of 9(1 degroo test sugar was 4.C538 cents. Tho roflnors margjn for tho year averaged .9039 contB a pound. Tho oxtensivo business In tho ox-portatlon ox-portatlon of refined to European and Soulh American countries which con. tlnued In fairly steady volumo throughout tho year and amounting to a total of nearly 400,000 tons was an Important factor In Improving tho business of tho roflnors during tho year. In tho American market tho Increnso, In tho amount of homegrown home-grown sugar avallablo, togothor with n relatively slight advanco In tho consumption of sugar in tho United States, combined to hrlng about a reduction of something Icbs than 200,000 tons in tho votumo of refined from imported raws marketed hero by tho seaboard refiners. Tho competition com-petition for sugar grown from American Amer-ican soil was felt much moro widely during tho past year than usual by the Importing roflnors, as native beot sugar was offorod for sale In practically practi-cally every part of the country during dur-ing tho early fall months. Facts About Sugar. |