The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1895-09-26
W. G, PRESS & CO.,
Grain and Provision Commission Merchants,
q ana q Sherman st., Chicago.
In their special market letter say:

IN Jnelr SpeClal lnarkeJ IeJUer say
The recent sharp advance in our
wheat market clearly demonstrates that
AS suggested in our last letter-on any
decline of several days duration, at the
low prices now current, reaction is
sure to follow. The conditions attend
ing the rise also show that, at times,
speculative influences may outweigh
those of q commercial supply and de-
mand nature, and that they may not
be ignored without great danger of loss.
At extremely low prices, there is but
little inducement for operators with
large capital to engage In short selling,
and they are obliged, If they wish to
trade without subjecting themselves to
dangerous risks, to take the long side
for fair profits. Whatever may be the
final result of existing conditions, we
believe the policy of buying on good
breaks for reasonable advances the
only safe one. That there are men Of
means in the market pursuing this
course, is evident, and that they have
had much to do with the rise noted, is
certain.s The extreme bearishness de-
veloped by the severe decline resulted,
as usual, in an oversold market, and the
covering of this short interest rendered
it easy for the bull combination to bid
up the market, despite adverse domes-
tic and foreign news.
The situation abroad remains about
the same, Russia still being liberal
shipper, and European markets rather
Indifferent to our show of strength in
consequence of liberal stocks. AT some
of their ports supplies are large, Liver
pool reporting storage room scarce.
One unsatisfactory feature of the COM
mercial situation is the unusual small
proportion of European supplies being
drawn from America. Without some
thing new to stimulate foreign buying,
any advance in our markets will tend
to still further reduce this proportion.
Foreigners are so absorbed in wild
speculation in South African gold min
ing schemes that they take but little
interest in grain speculation, and can
not be relied upon to afford our mar
kets much assistance. 1t is claimed
that the gold mine craze is so general
that, through the selling of American
securities for the purpose of securing
funds to engage in this speculation, it
IS seriously affecting our gold exports.
The chief legitimately bullish feature
we are cognizant of is the continued
light receipts at winter wheat points,
which, were it not for the liberal sup
plies of spring, would exert a more
marked influence on values. The pau
city of supplies at these points may be
due to one or both of two causes, viz,
small reserves held by farmers, or their
unwillingness to accept current quota
tions. While spring wheat receipts
continue large and the export move
ment light, the exhibitions of strength
may safely be attributed to speculative
conditions, and, as markets made by
such influences are always erratic,
rapid fluctuations may be anticipated.
The rapid curing of the corn crop
over large areas is having an effect in
the market for that cereal, not so much
in affecting the price as in curtailing
speculation in futures. The chief in
tluence in causing the recent stability
has been the covering of some large
lines of short Sept, sold at much higher
prices, when the enthusiasts were
loudly talking squeeze, in conse-
quence of the exhaustion of supplies of
old corn. With large supplies of new
corn in prospect, and an already de-
pressed market, spectators are wary,
fearing receipts if they buy, and man
ipulation If they sell.
The low price for oats so affects re-
ceipts that good quality grain meets
with a ready sale for Eastern ship
ment, although, as in corn, speculation
is restricted by the fear of large sup
plies If an advance is scored. Receipts
continue moderate enough to induce
short sellers of the near futures to COW
er, and, as the supplies of regular No.
2 are moderate, buyers for this purpose
have been in the market for the higher
grades.