Mexico weekly ledger., 1895-09-26
W. G. PRESS 8 CO.,
Grain and Provision Commission Merchants,
1..a e-.u S ra.
In their special market letter say:

q and 4 Sherman St.. Chicago.
In their special market letter say:
The recent sharp advance in our
wheat market clearly demonstrates that
-as suggested in our last Ie~tter-on any
decline of several days duration, at the
low prices now current, q reaction is
| sure to follow. The conditions attend
ing the rise also show that, at times,
| speculative influences may outweigh
| those of a 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 i~ndueeInent for operators with
large capital to engage in short selling,
and they are obliged. if they wish to
trade without ~subjeeting 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. The extreme bearishneSs de-
veIoped by the severe decline resulted,
as usual, in an oyersold 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 a liberal
shipper, and European markets rather
indifferent to our show of strength in
conseauence'of liberal stocks. At some
of their ports supplies are large, Liver
pool reporting storage room scarce.
One unsatisfactory feature of the COM
lmereial situation is the unusual small
proportion of European supplies being
drawn from anlerica. Without some
thing new to stimulate foreign buying,
any advance in 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 legitimatciy bulliSh feature
we are cognizant of is the continued
| iiSAtL 1CCClplS al NllllEI Wu6dG DOlILS,
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 theil
unWillingness to accept current quota
tons. 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 cratic.
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 curtaiiina
speculation in futures. The chief in
fluence in causing the recent stability
has been the covering of some large
J lines of short Sept, sold at much higher
prices, when the enthusiasts were
loudly talking a 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 it they buy, and mar
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 GOV
er, and, as the supplies of regular No
2 are moderate, buyers for this purpose
! have been in the market for the higher
grades.