About sugar buying for jobbers - How you can lessen business risks by trading in refined sugar futures

B. W. (Benjamin Wheeler) Dyer

Informations

• Publié par: omkya
• Publié le: 08 décembre 2010
• Nombre de lectures: 46
• Langue: English

Extrait

The Project Gutenberg EBook of About sugar buying for Jobbers, by B. W. Dyer

This eBook is for the use of anyone anywhere at no cost and with almost no restrictions whatsoever. You may copy it, give it away or re-use it under the terms of the Project Gutenberg License included with this eBook or online at www.gutenberg.net

Title: About sugar buying for Jobbers  How you can lessen business risks by trading in refined sugar futures

Author: B. W. Dyer

Release Date: September 5, 2009 [EBook #29915]

Language: English

Character set encoding: ISO-8859-1

*** START OF THIS PROJECT GUTENBERG EBOOK ABOUT SUGAR BUYING FOR JOBBERS ***

Produced by The Online Distributed Proofreading Team at http://www.pgdp.net (This file was produced from images generously made available by The Internet Archive/American Libraries.)

S

f

a U

o

b G

r

o A  

How you can lessen  business risks by trading in   Refined Sugar Futures

u R J

t   o

 

 

by

B. W. DYER

A BOOKLET FOR JOBBERS WHO SELL SUGAR Lamborn & Company   SUGAR HEADQUARTERS 132 FRONT STREET · NEW YORK Copyright, 1921 LAMBORN & COMPANY

About Sugar Buying J alichnec-ton nndlliwnif itar sno ngha pe e o ine xc e ilifdea  t aispms bookled in thi OB whoBERSah evah disnoc d eleaberncieerxp description of activities with which they may be in general familiar. We believe, however, that the inauguration of trading in refined sugar futures on the New York Coffee and Sugar Exchange, Inc., throws open a new realm of opportunity. We have attempted to outline briefly the chief advantages to be gained by a jobber's use of this new market, assuming that those who have in the past dealt in raw sugar as a protection for their refined sugar needs will welcome suggestions as to the benefits to be derived from trading directly in refined sugar.

ides ove rhte

Time, the Croupier of Business L f  osibussne.rmlae  Timble,ese prr uoavts eatelttPIOUCRA a t  aER EKI Time is the tap-root of most business uncertainties. No one can tell what will happen a year, a month, a day, a minute from now—the future ma brin floods and wars, estilence and drouth; or it

Cost and Selling Prices T esh sis leilgnp rice on cost, bu     o t n a   rhw e t n r o eo  l lnihytneedHe. oe dnos bat  na toptrehj nit r's obbenessbusit TAHemele ehTIf  ontims  iME market price. Regardless of his cost, he must sell to meet competition. It is equally obvious that the larger his business, or the greater his distance from the source of supplies, the more important part TIME plays in both his cost and selling prices. All jobbers, large or small, are obliged to assume greater risks (even proportionately) and exercise greater care, than, for instance, retailers buying in small quantities. A jobber's business may enlarge by a perfectly natural process of expansion, but his purchasing risks increase in greater ratio than his business expands. Similarly, under abnormal conditions, jobbers located at points requiring several weeks in transit prior to delivery, must assume greater risks than those located at the source of supply. In the event of serious delays in deliveries or in shi ments, even bu ers located at shi in oints are

m dn eroom ea erd,tehe tmpcocalimene h t sa t mi ele larger a become t ehT .regral dn wast enemele imsen  todwoi  enk implin sist  ot ex             may brni grgae trcpo sirfad anerthea wnippah , dna sseperipros s bu ty. Assh isencemosab  ouaml alsma s uyb srenifer sa yrrito tersamethe i  ntadel cobbre tit— imehe tex nt siedar ti h ottributes and disrat doya tno  s f gu f ti segn sub a ro  athlo chaxc end s aaeev efoipcertere baan w—a m oitcA .nams  oj ll intthn tre saan esio  fona ccuohel of corn: tim venera yecss tening clina de on  rt ni skeew eerhd i in fay mt,sian fos guraa e omnu ts a resu, and, a up oahcrkramt tedesiblra aseon c perhing for aps ar lesevhch rbna igglnes A l . leib boj egrayub ,reb  necessitate a dleyao  fwt orot  seou os,lor tecata d niopw sthcih es. A pric usinll b  eoceucnna dts s  waldet meTih itnalp ssesum gnin ded period of tim  evorea yne txne hay enppo  tflinam et yngniham s e el snaemi  .t iT rtanimpolly vita suaceb ,secirp dans stcon  intme erh sis b  yebofs may golt, week emit si s si—dlos ved an arug riar si eH .r ilataf a  kita, st pis hngsta orifsoesdnl  if s as werthey m a h c naudno stcs hisibussnero f mahdnt  oomtu,h in constant fea  sre adsar csehoniaga dna dekcate istherhom st wS cusn.eedefn  o enunghlio  . Te thenism ssenetub d is a buan, Timeagbmel w ragob—o a sproiterany had  dna  e ot  rofnp ec on the one hand,ne tacattsorhp emeTif  oevpro  t eht stsi secivres ions act enl and ehs.lH h sipaseo doli rwo sog nfor hir e blwepoi , enivat xecaitgnartial, s an impa emiT htiw skro wan medenhtignlehe  en T .rout o  F flowsor bfts e gi te."f his fat, ie  hon coltrtsamo re" si eht o far ut se, b com m yaimdnih sa  s  ohe tons esinppyam smrotS .reht

confronted with this problem, and the difficulties of those located at a distance are increased immeasurably. These difficulties tend to accentuate the importance of TIME in modern business. As business grows, instead of decreasing—risks increase. Any machinery which might operate to eliminate or reduce this uncertainty or speculative element in a jobber's business, would, we believe, be welcomed. Exchanges provide just such machinery. Other commodities, such as raw sugar, wheat, cotton, pork and coffee have had this machinery for years and it was provided for refined sugar on May 2, 1921, when trading in refined sugar futures was inaugurated on the floor of the New York Coffee and Sugar Exchange, Inc.

Where Buyers and Sellers of Sugar Meet T is a market place, where buyers and sellersHE SUGAR EXCHANGE of sugar or their representatives meet to trade. The Exchange provides a concentration point, where, under any market conditions, sugar may be bought or soldat a price. What that price is, is determined by how much sugar is for sale and how many people want it. If the supply is large and buyers are few, the price will be low. If sugar is scarce and buyers are numerous, the price will be high. Or, to put it in another way, when there are more sellers than buyers, the market declines; when more buyers than sellers, it advances. If the supply and the number of buyers are normally well balanced, the price will be determined largely by the cost of production and transportation. If events or circumstances operate to increase or curtail either the sugar supply or the number of buyers, and such events or circumstances follow one after the other alternately, the price will fluctuate. These are the results of the operation of well-known economic laws. In the case of all commodities which cannot be bought or sold at a common market place (or exchange), price fluctuations are usually wide and frequent, because no large group ever has common knowledge of supply, demand and other factors that govern prices—purchases and sales are made direct between individuals, and knowledge of the amount asked or paid is restricted to a limited few. Through the common market place provided by an exchange, on the other hand, market conditions and prices become common knowledge almost instantly over the entire country. This tends toward stabilization —a fact which, alone, helps to eliminate risks, and enables merchants to buy at lower prices than if forced to deal direct with one another. Sellers do not have to take such long chances and can thus afford to sell on a smaller margin of profit. Competition is stimulated and freed from many of its com lications and uncertainties to the advanta e of the seller, the

t alter this fact I .  nrpvodini gam exe anch sgecupeitalyleveod on srestintethe  in dotiocmm eht ysu mesot hae pleo pevah ohw  laer on   ehw oamt  ohtsoiness ofke a busihs detfam seb yjoe erbbro fthm  ota ne tcndiski  ines s bus ber' jobhcihw yb yrenihcis rvetilacupe s niatw yt hticihwtrestiuc uveerncegp ra tfot ehd  d to remove a lar sub sih na sseni stop elzelibitae cxks,sseh ahgnmingassuh ri suc he ten bedator f dnarepogise den opment, d ic devel ncenomofom dores ontieacre the ra segnahcxE .dnecont to haveise ehwr dl to w uo heh chexn  alw ageanvorp syab a sedi anduyerelle a s t p a,ra   ,etirec , odthwihe tar hihsdna pim drofstune that attendde T . ehf ca thtta iuqer erutuf rieceduro Ps.ntmerefoa ru eers sra theifor ket  mar k dripee sdnawots esuifl bnginussra era .dJ boebrotect th ble to p sps c ornia lo d ng tillian on o lo edam noilbissop —aceandvateropn  naicgni  samede  r crops. Crop finreknra som ew erieasber uscabae  aintnd m put a  to ehpleh y.sT nise  Ts.sibad unsoa  no ssenisub nia es opera . Exchang xehcnaeg eyba  n oft us bblamoue t ekg eht etat o ou hIf y ave.se h elc robaf vadaa  t y ha ttylibision iwrehto thgim uo nt, you w  insolve  eonm aeuodlh va thwi b atront aceb oemacekorhw r c not eh,ta rtcao wand n secu y of  of fo snht gnicrillffue oft enlm .uT eht ihgnt  odo, of course, ignireht orp  tificwhwah dus yoe   rucni uoy taht lyalcianin fngro otssis hw oek r brose achoo s to r.vew ahsteor seeptc r in this no dange eb, it should  e thmmcoiteff  otsuda yrecreni ,  of the  nd people dowlr.dicivilez el wwee oreferTh ni gnidart emocr fusuganed refi o e pp  dht snauter utroytin ot effoyor thu ade ntvagaset ah tam yeb derived from a ctavresnotni ,evintgelielf  ose uesvrti s T . eh cise hang Excovide prrasda dnyts atdnin qualies certa augey dr t sn fas oulegioatth o rer a sserlauo rtuy s. Brestinteour eht ni seil noitecotprf  oceanur liability of youhcracaet rna derbrr eroks  it norb rrekofI .uoy  u doy yo hav not gn if tsor aillancnt actronspree tho kcab ec ruoy f

Use the Exchange when the Market is Favorably out of line I attrusllamexe iviredisnoi eht gnN c artotfhf hdee dtre as imtraelseuofb  o oetnprrmt ineic  danoin klet i l v p e s   e a i n   d     n n h o t t sib oo absolute. The theor of exchan e o erations is that the exchan e market

radee blteex, nt ehtonbalamrvda ance in sugar priec sfot ah tepir  abye ngncra bllt fo sehedart ehht ha  mig reveve p ,ottndenoisa c  ifer dengnid ni teisind gasuexr  egenar l9102 , ahe exchause of t  eht dna reyub    ow nist  . I icblpu ta , dhttieta md traangeexchhad