The San Francisco call., 1898-11-28
INDICATIONS OF A
 DECLINE IN WHEAT
SHORTS ARE FILLED AND THE
 DROP HAS STARTED.
Bulls Forced the Barley Market Up and Then Try to Unload
 on the Quiet

What promised to be a strong wheat market early in the week flattened out to one of extreme weakness, ch1eny caused by long holders of early options becoming discouraged and throwing their holdings overheard. Foreigners throughout the week were disposed to buy best wheat in large quantities, ex- porters reporting upward of a million bushels worked each day. A good sized short interest had credit into December, resulting in advancing the price to 6S3s cents before the hungry sharks were filled up. When this was accomplished the urgent demand was taken out of the market, which was signal for the start ing of liquidation which carried Decem- Der to 655s and May to 655s at the close on Saturday, with indications of a still further decline this week. The general influences during the past week were rather inclined to more favorable prices, except news from Argentina, which places the exportable surplus from this this figure too small by 10000.000 bushels.
 For some time to come Argentina crop conditions will furnish the guide to American wheat prices Later on, possi- bly in January, home conditions. Severe cold weather will, as it always does, cause apprehension regarding the winter seems but little to encourage higher prices. Farmers may hold back their holdings, but it is more than likely they will begin to market them before May comes around.
 Country miIlers are showing less anx- iety for stocks, indicating their storage capacity is comfortably filed From the present time on American wheat prices will be controlled by the demand from abroad. The home demand seems pretty fairly eliminated from the market. Too much short selling by daring bears will at times give the market a congeSted condition, resulting in a fair sized rally, but should not be accepted as a fore runner of permanent advancing prices
 At present values there is fair return to producers. Corners do not come every ducers if they never appeared, as false ideas are their result, and it takes time and money to brush them from the mind.
 Corn has shown considerable strength and may do better after liquidation in De- cember is over It Is generally accepted that the present crop Is much smaller than the Government figures.
 Wheat in the local market appears to be going through a case of liquidation which may carry prices lower.
 December barley tried hard to stay at $1 30, but too many wanted to get out around these prices, and as a result not much trading was done at or above $1 30 The bulls, who have so far handled the were on Saturday peeping through the cracks to ascertain if they could unload on the quiet. The chief factors were mak- ing it appear that they were standing broken. selling regardless. Undoubtedly some few stanch friends of money cereal will accept delivery, which at present ap- pears of the white elephant order, but the greater portion of the longs do not want a pound of the real stuff. The ques- tion arises, who will hold the bag after December l? l believe the price will 20 much lower. R. E. MULCAHY.