The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-08-07
Advance Caused by Short
Foreign Crops.
FINE PROSPECTS IN UNITED STATES
Yield This Year VIII be About 100, 900, OO0
Bushels Greater Than in 1885,
The European Buyers in a
Quandary.
(Richmond Dispatch.)

Great interest is beng MANIFESTED mere
as well as elsewhere, IN the upward
tendency Of wheat. 1t has advanced
steadily during the past several weeks,
until the price has reached about 81
cents per bushel. This advance in the
price of wheat is due to shortage III
the foreign crops. The crop in the Uni
ted States this year was good. AS was
shown by the annual report of the Com
missioner of Agriculture, just issued, the
prospect is for a fine yield in Virginia.
From a statistical point of view, the
situation as regards wheat has changed
but little since Messrs. Thomas Branch
and Company issued the following cir
cular, July 10th last:
The worlds visible supply of wheat is
much smaller than it has been for many
years-say, so to 60 per cent less. On
the 1st of July, 1897, the worlds visible
supply was 100000 bushels, against
100000 in 1891. During 1891 cash
wheat sold from So cents to SIG. To
day it is IS cents.
The English supply, as of July list,
was sufficient for six weeks only, with
no more wheat available before the list
of September.
There is an evident deficiency in the
crops of France, Italy, Austria-H Hungary,
Roumania. Bulgaria, and Turkey. The
last three have suffered from exclusive
rains, and Russia complains of drought.
India, Argentine, and Australia have no
wheat to ship. Our crop. promises to be
large, but in 1891 it was GIT 100000
bushels. when wheat sold much higher.
Europe will be forced to take our
wheat.
Should the harvest abroad be delayed,
or the hopes for very big crop in this
country not ma terialiDe, wheat must
sell much higher. Yours. very truly,
THOMAS BRANCH e co.
LARGE CROPS THIS YEAR.
Our exports continue large. The wea-
Their for harvesting abroad has not been
favorable, and it would seem that the
hopes for a big crop in this country will
not materialize. This country made
last year 426000,000 bushels. 1t is sup
posed the crop will be 100000 larger
this year. Conservative foreign esti-
mates recognize that the European crop
is about IA 100000 bushels less than
last year. Our average exports are a.
bout 150,00O,000 per annum. The guam
tity exported this year should be at least
200,000,000, and it may be much more.
An average export of 150,00O,000, plus
a shortage of 144,OOO,OOO in the Euro
pean crop, makes the enormous total Of
nearly 300,000,000.
Wheat is higher than last year. 1t
is natural that foreign buyers should
work from hand to mouth, taking only
what grain they actually need, hoping
to see the price of American breadstuffs
decline. They claim that the price of
wheat is too high, and that heavy re-
ceipts and pressure to sell will force it
to go lower; but observers are aston
ished to see how slow the farmer is to
ship his grain, and it would seem that
he has some financial backing and con-
fdence in the value Of his property.
THE CONDITIONS IN 1891.
In 1891, when the United States made
the biggest crop in the history of the
country, and when receipts in the month
of July were the heaviest on record,
wheat fuctuated between So and 90 cents,
and advanced the following month (Au-
gusO to $1,13, in spite of the enormous
receipts, European buyers having finally
realized that though the American crop
was very large, they were in need of
breadstuffs. They were forced to take
American wheat at high figures.
To foretell the immediate course Of the
wheat market is impossible, and there
may be lower prices for a time, the re-
suit of manipulation or of heavy receipts.
1t is usual to see the wheat market fuct-
uate violently, but all things taken into
consideration, it is evident that it is like
ly to sell much higher. And in this con-
viction is found the best basis for the
return of that prosperity which is so
confidently looked for by the conserva-
tive, careful observer.