The San Francisco call., 1898-05-01
V HEAT PRICES
 WERE FORCED E But the De cline of Late < Regarded as Equally
 Too Severe.
It Is Not Thought That the
 Market Will Sink Much Lower.
Ina Local Fluctuations of Yesterday Showed a Condition of Ex-
 trenae Nervousness.

1 The past week has been one to be re-
 membered by the wheat trade. One week ago Saturday December wheat sold at S1 6S, with May at $1 70, and the following Wednesday the price had ad- l vanced to $1 STA and $1 S9, an appre
 ciation of S4 per ton. The cause for this advance was sharp rise in Con- 1 tinental and United Kingdom mar ketS.
 The very high prices reached in this
 market show plainly that an oversold i>condition existed, which has given the market a very weak undertone during the latter part of the week, the price of
 December dropping from $1 STA on I Tuesday to. S1 TIE. on Friday-a break of 16A cents from the top. The ex- | trenle, low prices * reached by wheat t.during: the past four years had educat- ed the 'speculator to regard $1 50 as be- ing top prices for that commodity, re- sulting in a general shorting of the
 market. This pressure was not strong enough to cope; with the influence of l strong and rapidly advancing foreign
 markets. The: more. short selling the higher went prices, until a general scare overlook the market, which re- suited in heavy losses to the persis- | tent seller.
 AS soon as this congested condition was. expelled from the market prices began to drop of their own weight, giving the market to the casual ob- server a; weak groundwork. This ap- pearance is liable to be misunderstood while it is admitted prices were forced too high. Yet it may be justly said the decline has been equally too severe. | With present conditions $1 75 per cental does not seem too high for California grown wheat. Millers' demands will far exceed supplies, and this will af- [ ford home producers the added differ ! ence in freights, which means $2 50 per | ton, reducing the actual export value to S1 621a. This price is much below a
 Liverpool basis, using a 30 shilling ocean rate. The wheat crop of Oregon and Washington is not yet harvested, and will have to result in full crop,
 as that condition has been fully dis counted by the trade. The conditions which will mostly control American wheat values for the coming crop will be the situation abroad, regardless of
 the fact that the crops abroad are most promising. The demand for American
 wheat. will be large. English and
 French stocks have never been so near ly exhausted as at present. This is in the face. of Americas $ statistics of two hundred and ten million bushels since t July l, 1897, compared with one hun dred and forty-five million bushels for the year ending at that date showing that the. United States and Canada have exported fifty-flve million bushels more wheat during the past ten
 months than the twelve months pre- viouS.
 Letter, who controls the Eastern
 wheat situation, says he finds ready foreign market for his wheat, notwith- standing spot wheat is selling at 120 per hushel in the Chicago market. It
 is estimated two and half million
 bushels of contract wheat, which cost him upward of '110 per bushel, will be
 delivered on Monday. It is not con sidered squeezing transaction at all.
 He has sold the wheat ahead to for
 eigners, and asks for it's delivery in
 order that he may meet his own sales.
 The May option seems congeSted.
 Many have sold, trusting to past ex-
 peFiences to favor the paper seller. The conditions east of the Rockies since last
 harvest can be as easily handled on
 this coast The milling demand will
 be factor of vital importance in shap- ing wheat values this year. The war going on will result in neglect of farm | work and prove of no small conse-
 quence. In reviewing the situation at
 home and abroad one can hardly fig
 ure out a condition that will favor
 
 ing at present.
 Yesterdays market was one of ex- treme nervousness. Closing Liverpool cables quoted September wheat 3sd and
 December 34 d higher the advance con-
 ing in the face of a big decline in Amer
 fcan markets yesterday. At the ini.
 tial trading yesterday December sold
 at *174 Heavy offerings by local plung < CTS broke the price quickly to 173 from where 1t rallied to 1741a.#- The advance was of short duration, buyers. becoming timid and selling out, thereby assist
 ing: the shorts in hammering prices. The market did not find resting place
 until :17214 was reached. Good support ing. orders. stopped the decline and caused a rally to 1T2&. May was nomi-
 nally :174: 5 May sellers gave notice of
 deliveries for Monday. Shippers are the
 principal holders of May contracts. The market closed for the week in
 an oversold condition. Should foreign I
 markets show advancing tendencies
 this. week no doubt shorts would find
 wheat offerings scarce and a sharp ad- vance result
 Barley has been dull and worthy of
 no special note. Prices held fairly firm
 in the face of heavy importation of corn
 into the State. The market will not
 probably feel the true result of corn feeding until stock has been educated
 to it's use. At first only light feeding
 of corn can be indulged in. it's feeding
 being. graduated. There are now en route 1700 cars of corn from the East
 destined to points in the State. De- cernber barley closed at 133H with few
 buyers or sellers. All May contracts
 will be met which may overstock the spot market.