The Wichita daily eagle., 1898-05-03

ably soon be reached. May wheat ha.
been advancing by leaps and bounds, sell.
| ing Tuesday at s1.25, and. although tht
| conditions which have made these re.
markable advances possible have soms
bearing on the July delivery. new con.
| siderations viii probably control after the
expiration Of the May future. The May
| campaign, which has been continuation
or outgrowth OF the campaigns in Septem-
| Der and December wheat futures, has
| been based on the belief in scarcity
! abroad. The outcome is demonstrating
that the premises were correct. although
! circumstances have arisen to bring out
| in bold relief this scarcity which the
shrewdest operator could not have fore
| casted.
The statistical situation last summer.
when the enhancement Of wheat values
began. was extremely favorable 10 higher
| prices. Statistics, however, had lost their
novelty and in fact seemed TO have lost
their force during period of depression
| and abnormal business and financial con-
dftions. The statistics a year ago showed
unusual depletion OF European supplies
not only of breadstuffs but Of feedstpffs
of all kinds The Southern Hemisphere
| exporting countries were at least tenn
porarily out OF competition and the pros
pect was that Russia's phenomenally
heavy offerings OF grain would be ma
terially reduced. The prospect was for
a good domestic winter wheat crop and
only a fair spring wheat crop in this
country These were among the legiti-
mate factors on which 20 base a belief
in an upward movement in prices. Among
the speculative possibilities was re-
vival IN speculation in grain. which had
been reduced TO a low level by hard times
and political troubles abroad.
Ever since last summer the wheat mar
ket has alternately reflected apathy to-
ward and a realization of existing condi-
tons. The enormous exports for months
showed that the statistical supply posi-
ton abroad had not been misrepresented.
The disposition for long time on this
side was TO ignore the export movement.
After sharp advances, in which adjust
ments OF July, September and December
contracts were incidents, the foreigners
became apathetic. They received the
glowing crop reports, and, although TAX
ing large quantities Of wheat each week.
the foreign markets were not strong.
When Joseph Letter began moving his ac-
emulation of cash wheat abroad he was
under the necessity Of forwarding some
OF the grain on consignment. 1t could NOT
be sold outright at prices representing a
parity with the Chicago market. Grain
men of excellent judgment advised
7 ~
distribution point for an accumulation OF
from ten to fifteen million bushels of
wheat. The selection. in view Of recent
developments, has proved most fortunate.
Developments, Of which the outbreak Of
hostilities with Spain is one, have made
the foreign markets relatively the strong
est in the world
On this side there has been much diff
ference of opinion as 10 the real bearing
of a war in which this country is engaged
on values Of grain and produce. There is
evidently no debate on this point abroad.
Liverpool and the continent have been
buying wheat in all positions without
much regard TO price. Actual spot wheat
has been at a premium over futures and
nearby futures have been wanted more
urgently than deferred. Advances OF
cents a bushel in Liverpool yesterday and
of 69s to rs cents in Antwerp are simply
illustrations of the feeling abroad. The
foreign markets have been leading Chi
cago. but of late local spectators have
been falling in line and paying some at
tention to outside market conditions.
The July delivery has been dominated
until recently by the crop reports. July is
a new crop delivery in Chicago. although
it is always problem as TO the quantity
of wheat which will reach here by the end
of July. 1t is not a, new crop delivery
in the northwest, and this serves to ex-
plain in part the premium Of about 20 cents
in Minneapolis and Duluth over the Chi
cago July.
The deal" which promises to stand out
in board Of trade history. has been re-
markable in that it has kept close to the
been the occasion of advances at a time
when the producer at large has been able
to derive the maximum benefit IT has
been a godsend to the farmers of the
northwest and to holders Of wheat all
through the winter wheat states. II has
made easy money conditions in sections
where times have been hard for several
seasons. The activity OF the markets and
the exigencies of the December deal have
greatly increased the Importance Of Chi
cago as a grain distributing and supply
ment Of grain for export has helped to
keep the trade balance on the right side
Of the international ledger.