Salt Lake Telegram | 1939-09-12 | Page 12 | Observers Wait Sugar Reaction

OBSERVERS WAIT SUGAR REACTION Time and the law of supply and demand will determine whether sugar prices will ease as a result of presidential suspension of marketing mar-keting quotas, it appeared Tuesday. The retail price In Salt Lake City was unchanged. One broker, who declined to be quoted, told The Telegram that the law of supply and demand "still holds good." He said the suspension will result re-sult in turning upon the market large quantities of sugar that otherwise oth-erwise could not have been released re-leased until 1940. There is no precedent, he said, to indicate what the price reaction will he, because, under sugar control, the sudden release Is "something new." "Some of the trade seems to think prices will be eased." he said. "It means supplies will be eased." Even had the quota not been suspended, supplies would have Increased because of beginning begin-ning of refining operations that will mean more supplies In about 38 days." ' Refinery heads said the quota suspension permits refineries to unload carry-over stocks. H. A. Benning of Ogden, president presi-dent of the United States Beet Sugarassoclatton, said western growers stand to receiveTrom $3.-' 000.000 to 15,000.000 more from 19.19 crops than had been expected. R. T. Harris, president of the Ounnison Sugar company, said the art would help western refiners, who can release about 425,000 bags of sugar. Cus P. Backman, chairman of the state fair trade practices commission, com-mission, said there had been no sign of collusion in sugar prices. (Jovernor Henry H. Blood talked . to commission members and said there was no sign of violating the law.