The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-23
BOTTOM OUT OF WHEAT
ALMOST UNPRECEDENTED DROP OF
NEARLY sc YESTERDAY.
Tight Money and Longs Taking
Fright Caused the CoIIapsc-Other
arke Lower.

CHICAGO, Oct. 22.-One of the heaviest
breaks in prices ever recorded in one day
on a market which was not influenced by
the bursting of a corner was the outcome
of to-day's trading in wheat. From the
close of the day before until the last mo-
ment of to-day's session the decline was
nearly &c per bushel. Corn and oats held
steady. and, compared with wheat. they
might almost be called strong. Provisions,
likewise. were but slightly affected.
December wheat. which closed yesterday
at 754c, opened this morning at from 744c,
sellers, down to 73a4c. Very few of those
who wanted to sell succeeded in getting
above 74c, and in a very brief space of time
there were no buyers at over 7314c. Before
half an hour of the session had passed it
sold at 721ac. Yesterday morning on the
curb it was 1880: to-day, about 10 o'clock.
it was 7212c. 1t is not often that the price
has such a sensationally sudden collapse.
Tight money was the principal factor of
weakness; the banks are said to be inclined
to refuse loans, and the carrying charges
which speculation has had to bear are said
to have been in some instances as high as
% per cent. per annum. 1t was felt that
such conditions could not continue without
q very depressing effect on values, and
hence the smaller operators, who were suf-
fering the most inconvenience as borrow
erS, made an early rush to sell. This
brought an immense amount Of wheat on
the market. Stop orders were in the hands
of nearly every commission man. and the
opening decline caught most of these from
rye for December. There was a rapid re-
covery to 731ac, and after the decline to 73c
the price again recovered in a more grad
ual way until it reached 74c. The activity
which had characterized the trading up to
the latter point ceased there, and for a long
time thereafter there was nothing left of
the two days storm but the quiet heaving
of the groundswell.> Opening cables ex-
hibited considerable weakness and aided in
the decline. Liverpool opened led lower
for California futures, while early Berlin
cables showed a decline of Az marks, about
27sc per bushel. That the financial end of
the deal was being made the most of to
force prices down everybody believed, but
that made it none the less effeetual. After
the rise to 74c the price sagged again to
721ac, and was bringing about 73c at 1
O'Clock. In the last ten minutes of the ses-
to tumble, and panic about describes the
condition of mind of many of the holders
of long wheat; Stop-loss orders again came
into play, and some heavy lines were sac
riticed. San Francisco and st. Louis, from
whence came buying orders earlier, were
heavy sellers in the last stampede. The
San Francisco market was quoted as clos
ing in panicky condition, and rumors of
Cudahy selling out. Armour pounding the
A. pIld OLIISI d1tIdIIttI1IlGditu Tx OS
helped to keep up the demoralized condi-
ton of the crowds to the end. December
tumbled from re to 70Ac in less than ten
minutes, and closed at 701ac, or 44c below
the final quotations of the day before.
Corn ruled relatively strong mpar to
the terrific slump in wheat. The market
started weak, mostly in sympathy with
wheat, though lower cables also exercised
a depressing influence. But a good demand
existed and a big business was done for
shipment. Near the close the influence of
the sharp decline in wheat was felt, and
the advance was lost. Opening prices for
May were CSC lower, at 271Ac. 1t sold up to
Csc. then off to 27$sc, closing steady at 2715c.
Oats opened weak and sold &c below the
close last night, influenced by the break in
wheat. and weakness in corn, but the de-
cline was soon recovered, and most of the
day the price held very close to yesterdays
close. There was a decided rally in the
last hour on good buying, but this was lost
as wheat declined. May opened about CSC
clined to 21c, where it closed.
Provisions were but little affected by the
in wheat, and prices 1uctuated
but little all day. The opening was I'M
changed. A Slight decline followed. but I'M
der a fairly good demand a better feeling
developed and prices advanced. The de-
mand dropped off later, and the advance
was lost, spectators being unable to en-
tirely ignore the wheat decline. January
pork closed 10c lower, at s.. IS; January lard
unchanged, at Acc; January ribs .021ac low
er. at 3.S215c.
Estimated receipts for Friday-Wheat, 191
cars; corn, 900 cars; oats, $50 cars.
Leading futures ranged as follows: