New-York tribune., 1877-08-18
SPECULATION IN GRAIN.
REsULTs or RECENT MOVEMENTS IN OATS, COR


RESULTS or RECENT MOVEMENTS IN OATS, CORN
AND wHRAT.
Referring to the recent heavy decline In the
price OF oats commission merchant statest. said to
TRIBUNE reporter The speculation has not been as
reported and the losses by the unusual de-
cline have fallen upon firms and individuals In every
way able 10 sustain them" When asked for history OF
the speculative movement he said:
1.-The hot weather OF July, 1876 caught the oat crop
in the milk, farmers say, which shriveedit Ihe re-
suit a crop which only weighed from twenty-five
to twentysx pounds per bushel, against the usuai
weight OF thirty-one t) thrtyfve pounds; the crop
OF this State alone reaching the standard
weight The speculation based upon the idea tnat
there would he "A small crop, and tho weight was
light, the quantity would be greatly diminished. his
proved to he dclusion. At tue sowing time In April
there small deliveries and this fact. with the eN
citemen Of the European caused prices to advance
from 409i2c. to 55SG0c. per bushel Then began
speculative movement in Sew-York, under the belief
the demand for oats wonld greatly exceed the sup
ply, but snort time supplies began to arrive in I'M
usually heavy quantities, ana prices gradually rceeded
Those who had the higher priced oats in store held thein
under the belief that the supply would in the
end be exhausted, and they would make large
profits. They disappointed. Every bushel OF
oats that could be scraped together was shipped to
NcwYor and entered largely into use because or
lis greater sustaining power the inferior oats.
About middle of July when the new crop was re-
garded pretty safe, prices rapidly went down, and
losses accrued those who held the old crop IN ware
There probably not less than 100000 BUSH
els of the old crop hand The loss this stock
VIII OF be less than 30 per bushel aggregate
of 81 600 to SI5OOOo IL viii hurt any one badly,
as II divided up among numerous sieciators. all Of
whom of large means aud WHO have made heaVy
profits by previous speculaons."
Whtehalst. operator who deals largely In corn and
wheat said "The price OF coPn prior the war in the
orpf
Of the heavy movements in the Black Sea and from
America until it had reached the lowest figure known
for years. Notwithstanding this decline, producers in
America received fair price for their corn, owing TO the
unusually low tariffs for rail and ocean freights Al tne
outbreak of the war was supposed tht the cioshS OF
the Danube and the Black Sea would draw 10 TINS cCin-
ty the great demand for corn that existed IN England
aud owing the excessively low price great speculation
was begun aud prices advanced No corn rose from %
10 10 cents per bushe after the announcement OF hoe
ties but broke down on lle fee reccln1s rom e I~c
p0rs canal. to about 51JS cents. Then prices graz
ally rccoy cred. ami In JULY reached 90 cents decline
has again occurred ana me ruling picc ~ pre-ch ~ %
cents about cents more than the lowest hgure before
the speculation began. The movement om the west 10
Europe has been extraordinarily large, and with
the diversion OF corn from ran 10 c5lai' occ''-
heavy FOR the remainder Of the The losses by the
speculation have been moderate, ANA hOpCdJ Is hult
The profits OF handling have been large ali through 'e
SEASON."
Referring to the wheat speculation, this gentleman
said. "1he decline I'm wheat Is fully 30 certs DuSei,
but II is decline that all sag2cous operators antScpa
cd. The price Of wheat is always materially ahectel
durng the iriUSfiloH the Vi"iS
total wheat in sight August 1. was only 2OJoOcO
bushels, which covered the old crop. Persons hoilhg
the old crop wheat deduct from the heavy prOhts
OF the 30 per busnel Instead OF losing on
the entire venture many Will be gamers to ther spcca
ton"
This informant gave an instance OF one operator who
had drawn out AID placed in bank SG4 900 the result
Of his speculation. The on less he had suffered by old
crop wheat held L00l. so that he had netcd
100000. The wheat selling rs low prices, 1t Is
stated bought from the farmers, and Is sold
a advance over the price paid for IT, The toi ossc
that have resulted from the speculation wheat are
pi1ccd nc from SsOOOO to 100000 which IL divided
among a large number of operators.