Daily globe., 1878-08-27
weekly Circular of J. a. Drake 8 Co

- ScAAy Ol ~ rs DTdk0 q Co.
CHICAGO, Aug. 24.-wheat gave way sharply in the
early portion of the week upon symptoms Of re-
duced continental demand and upon reports of re-
sales in the winter wheat markets for continental
count The movement at the timary markets In
stead Of diminishing has increased we note that
Chicago, Milwaukee, Cincinnati, Toledo, Detroit and
ST. Louis have received for the week ending yeser-
day 3,S19 900 bushels. OF this quite four-fths has
been winter wheat the movement of spring not hav-
ing fairly commenced. The call for currency for the
movement of the crops has been on an extended
scale, and from the other primary markets We hear
only Of expected large receipts for some time to
come. The key to the situation is unquestonably
the French demand. If it continues at present pro
portions sufficient of surplus will have been dis
posed of in the next sixty days to satisfy farmers
who have been willing sellers, and such surprising
demand may warrant higher values and preclude the
depression from over supply which We deemed in
eyitable, not reckoning upon such demand But will
the French demand continue? Taking all past pre-
cedents our guide we should answer the question
IN the negative. When the French buy they take the
stuff with ayidity and in a wholesale way until they
are overstocked, and then they reappear sellers
forcing values unnaturany the other way. No
doubt French crops disappointing this year. and
1t is not surprising that French buyers should regard
our choice winter wheat with great favor and that all
should be tempted to purchase but believe it pos
sible to have "too much of good thine.' Nothing
seems clearer than that cessation of the French de-
mand would immediately convulse the markets of
this country, for the movement is a scale so ex-
tended that any stoppage in export outlet would in
crease supply over bushels daily, and however
great the confidence abroad, it is not sufficiently
strong in this country to store the property and
wait resumption Of such demand. Reports from
spring wheat sections indicate that the oattum from
threshing machines is better than expected but the
crop of spring is largely No. and below. Freights
are stronger but the carrying capacity Of the lakes
is great that any material advance hardly to be
expected at present. Cash wheat at 96c with inter-
mediate charges 1424c would cost S1.10A alongside
ship. With sail freight 6s Sd and per cent. COM
mission on the currency value would cost As Sd Cork
for orders. Beerbohms quotations old spring for
prompt shipment Ais cd about &c per bushe to the
disfavor of shipments. The above calculation is
based upon spring, which is worth relatively less
than the old spring of Beerbohms quotations.
Corn has ruled easier. contrary to the general ex-
pectation. Receipts continue heavy and we have
beer been rapidly lccu,nulatipg stock. prominent con-
Germ bought heavily of the August option and sold
September, but we fancy that they have been dsap-
pointed in the heavy receipts. Deliveries of cash on
September options will doubtless be heavy on the
f1rst OF the month. vast amount of corn has been
bought with the expectation of early frost which
the weather prophets" have predicted We can sec
but little in the market either to buy or to sell.