The San Francisco call., 1897-12-10
An Advance of Nine Cents a
BuShel From the Low
est Point.
ST. % THE HIGHEST PRICE
REACHED.
From Many Points Wheat VIII Be
Shipped to the Lake City and
Sold to Advantage.
Special Dispatch TO THE CALL


Der, 1885, when B. P. Hutchinson cold |
Hutch") engineered his famous corner, |
sending prices up to 50, has there been
such squeeze in wheat as there is at |
present. The worst OF it, from the stand
point of the bears, is that the squeeze will /
be continued. The shorts are demoral- |
lied, and in their mad rush for cover are
playing into the hands of the longs and |
working out their own damnation.
The price to-day advanced to 81 90. 1t |
touched shat point twice, and about 30 00OI
bushels sold at that figure. The advance |
from the lowest point was nearly 9 cents, |
and at the close the sales were at 81 OF, or |
go cents above the close Of Wednesday. |
The price has appreciated Is cents within |
a week, and wheat sold the highest since |
August, 1891, when the Russian famine |
scare was on. From the low point in |
June December has advanced Al cents. |
and there Is no telling where the end will |
be. The range for the day was 81 0114 TO |
81 O9. At the start the sales were at 81 0111 |
TO 81 OF at the same time. There was a
rush 10 buy which continued at intervals
all day. Prices fluctuated widely, going
half to one cent between trades.
All the buying that advanced prices was
by shorts. the Letter party, who have
about 900, 900 bush els bought for delivery
this month, doing a good part OF the
selling. 1t was their intention OF keeping
prices down until about the end of the
month. A statement that came from the
best sources that wheat is TO be shippedLas
soon as delivered instigated the buying.
Arrangements have been made to send
wheat to the seaboard ali rail, something
T.
New Y ork. which is equal to 10 cents per
bushel. This is lower than the lake and
rail rate It Is SAID the Pennsylvania has
captured the bulk of it, as other lines are
blocked at Buffalo and unable TO handle
it. From a transaction of $50, 900 bushels
two days ago. there was an increase TO
about !, 500, 000 The Letter party made
an effort to keep the price down, and sold
through brokers at 81 05 also at different
times as prices moved up, but were unable
to prevent bulge.
They were also in May, buying aud sell
ing. A part OF their sales for Decem Der
were replaced with May a. discoun. Of
a to Is cents. This has been the play
ever since they have been in the market
last spring. At present, however they
are getting wheat back a. a wider dis
count than heretofore. They have held
about 1000. 600 bushels, and there is only
5000, 600 bushels in store. This gives them
an advantage over short sellers The ad-
vance enabled the pool TO sell out part
of their surplus holdings at profits rang
ing from 10 to 25 cents.
The sudden advance has developed a
larger short interest than was expected
Tpere was large buying by commission
houses. who had customers short 5000 to
% 900 bushels. They cared not about the
price but wanted to get in out of the way
of the bull pool. Heavy purchasers were
made on orders from New Workers, who
recently sold because they considered
prices too high. Those who led the buy
ing were Darlington & Hannah and Logan,
about 10000 bushels being taken by the
two houses.
When premiums over other markets are
figured they make a surprising array.
Chicago was at one time 10 cents over
New York, cents over ST. Louis. l6 cents
over Minneapolis, II cents over Duluth
and - cents over Toledo. There is now a
profitable shipping margin between Chi
cago and the Northwestern markets and
also from Toledo and about even with
New York.
The premiums will attract wheat here,
and 1t was asserted that between 5000 900
and 4, 000, 600 bushels will be shipped from
the North west, as there is a profit of TO 7
cents in il. Holders of wheat there will
take the risk OF il grading here and also
OF having to pay higher prices to get it
back if necessary later in the season. 1t
was also claimed that a cargo was TO be
shipped here from Toledo and that three
cargoes of Duluth wheat, recently shipped
to Buffalo, have been ordered here. There
were also numerous orders from Ohio In
diana and Kentucky. Late rumors were
that shipments would be made from New
York but it was not credited. Judging
from all reports Chicago is to be made the
dunn ping ground for the country and
bulls will be forced 10 take more wheat
than they figured on.
1t is announced on the best authority
that, in addition to The engagement of
rail-room from Chicago to the seaboard
for 5000 600 bushels, storage capacity has
been secured at New York for 5000 COO
bushels, and of ocean room from Boston
and Portland for 1000, 600 bushels. The |
rate OF 3L pence per bushel has been OBJ |
tanned from Boston to Liverpool, which is |
"a pence lower than the going rate from |
New York, shipments to be made in JAN |
uary and February.
Those who are short say the advance is |
due to manipulation. On the other hand |
the bulls say it is on legitimate demand |
Messages from the seaboard late in the !
day said the advance had shut off foreign |
buying, and only 100, 600 bushels were sold |
to foreigners All Broker French of the |
Letter party had to say was that they were |
not selling any wheat to speak OF.
P. D. Armour, who is regarded as the |
largest short, smiles and says he thinks |
wheat should sell for 81 every day in the !
wear, that ne is buying May, and he thinks |
Dece ber will sell al 81 80. Decem Der has |
become fancy deal, and new business is |
being refused by com mission houses unless |
cash property Is back of the order.
NEW YORK, Dec. 9.-The sensational
advance IN Chicago to-day from 81 90 to |
81 O9 was reflected locally by a neat i'm
provement of ia TO 13S per bushel |
Speculation, while active al times, did not
approach the excitement reported in the
west. as traders here were pretty well