[1] The cheapest routing (48¢) takes about two weeks' more time in transit than the New York all-rail routing (63¢). Interest charges on finances involved, etc., for this extra period will bring the expense of this routing to approximately 50¢.
After a study of the amounts of sugar shipped over these various routes we have arrived at an arbitrary figure to represent the normal differential between refiners' prices and exchange quotations. We believe that 57¢ will serve as a safe basis for calculation, but 58¢ or 59¢ might be equally--or more--accurate. In fact, anyone is entitled to an opinion. 57¢ is our opinion. It is not an average of freight rates, but is an arbitrary figure.
When the markets are in line, using 57¢ as a basis for calculation, 2% should be deducted from refiners' prices, and 57¢ added to determine what Exchange quotation should be. Conversely, 57¢ should be deducted from Exchange quotations and 2% added to determine what refiners' prices should be.
If you are willing to accept 57¢ as a safe figure, you may find the following chart useful in determining the condition of the market:
ARE REFINERS' PRICES AND EXCHANGE QUOTATIONS IN LINE?
Based on a 57¢ differential and 2% cash discount
When Exchange Refiners' Quotations Prices Are Should Be
4¢ 4.49 4.05 4.54 4.10 4.59 4.15 4.64 4.20 4.69 4.25 4.73 4.30 4.78 4.35 4.83 4.40 4.88 4.45 4.93 4.50 4.98 4.55 5.03 4.60 5.08 4.65 5.13 4.70 5.18 4.75 5.22 4.80 5.27 4.85 5.32 4.90 5.37 4.95 5.42 5.00 5.47 5.05 5.52 5.10 5.57 5.15 5.62 5.20 5.67 5.25 5.71 5.30 5.76 5.35 5.81 5.40 5.86 5.45 5.91 5.50 5.96 5.55 6.01 5.60 6.06 5.65 6.11 5.70 6.16 5.75 6.20 5.80 6.25 5.85 6.30 5.90 6.35 5.95 6.40 6.00 6.45 6.05 6.50 6.10 6.55 6.15 6.60 6.20 6.65 6.25 6.69 6.30 6.74 6.35 6.79 6.40 6.84 6.45 6.89 6.50 6.94 6.55 6.99 6.60 7.04 6.65 7.09 6.70 7.14 6.75 7.18 6.80 7.23 6.85 7.28 6.90 7.33 6.95 7.38 7.00 7.43 7.05 7.48 7.10 7.53 7.15 7.58 7.20 7.63 7.25 7.67 7.30 7.72 7.35 7.77 7.40 7.82 7.45 7.87 7.50 7.92 7.55 7.97 7.60 8.02 7.65 8.07 7.70 8.12 7.75 8.16 7.80 8.21 7.85 8.26 7.90 8.31 7.95 8.36 8.00 8.41 8.05 8.46 8.10 8.51 8.15 8.56 8.20 8.61 8.25 8.65 8.30 8.70 8.35 8.75 8.40 8.80 8.45 8.85 8.50 8.90 8.55 8.95 8.60 9.00 8.65 9.05 8.70 9.10 8.75 9.14 8.80 9.19 8.85 9.24 8.90 9.29 8.95 9.34 9.00 9.39 9.05 9.44 9.10 9.49 9.15 9.54 9.20 9.59 9.25 9.63 9.30 9.68 9.35 9.73 9.40 9.78 9.45 9.83 9.50 9.88 9.55 9.93 9.60 9.98 9.65 10.03 9.70 10.08 9.75 10.12 9.80 10.17 9.85 10.22 9.90 10.27 9.95 10.32 10.00 10.37