The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-22

The wheat market showed some weakness
yesterday the May declining TO sO1kc at one
time 1z4c under the top price the previous day.
The apparent cause OF the weakness was profit
taking. Armour has considerable following
in his May deal. and some OF these long hold
ers evidently got shaky and thought they had
better take profits while the market was up
good and high The longest line Of May wheat
outside Of the Armour holding is said to amount
10 about 100000 bushels, and is owned by
Chicago Spectator, also. The weakness of the
market was only temporary, really. for the May
price "Wednesday, and the July at S314c, &Qlc
away from the opening price. which was the top
the low price for the day, there was evidence
OF some Armour support The market then
figure, which was sc above the low opening.
The May opened at range from sl3sc to s2b4c
startes pretty clearly what will happen if the
Armour. interest tries to dump its line of 15,-
100000 bushels.
A W. (''Sandy') Thomson.-The wheat market
acted on the opening as though II was in for
good break. May wheat sold low sO1zc and
July sl%c. At this point, it is said. Armour
stepped in and supported the market. 1t looks
to me as though it will take something more
than muscle to carry it much higher. Conditions
against the price Chicago May wheat is at
least 10c per bu above an export basis. Corn
started in the same direction as wheat early but
soon recovered the loss and closed about re
lower than Wednesday. Corn is nearer worth
safely bought on any good backset. In provisions
it seems TO be waiting game. Hog receipts are
o i5c Sgher The hestaney in tke i pork proS e
uct is apt TO change any day, and l look for IL
the long side. Would buy provisions on any
and all breaks.
The July had a relatively larger decline than
the May, getting down to s1a4c at time.
21ba1I4c under the opening, and &c under the
Tt1x-
stronger, along with the May. and closed at
s3Hc. The cause for the July being weaker
than the May was general rains in the South
western wheat belt. There had been no mos-
ture on the Southwestern wheat for some time.
and fears Of extensive damage to the crop from
this cause a strong bull factor in the
Southwest had a bearish effect upon July de-
livery. but it closed relatively as strong as the
May.
With the July wheat almost Sc under the
May. there is some temptation to buy the de-
ferred month. OF course. the July has been
advanced by the May strength. But there are
features that might make the July look cheap.
There is not likely TO be any more contract
wheat here in July than in May. The July
would feel tie effect Of any accident to the win
ter wheat crop. Interest in July centers. how
ever. in what is done with the contract wheat
II the little here now would be moved out the
July shorts could not expect contract stock
from any other source With everybody fearful
about selling May there must be large short
interest in July. The Armour people have had
a considerable lire Of July sold. but there has
been buying OF july az times which has indi-
Gated that this hedge was beng taken back.
2
A. r. Thompson & Co Grom Finley. Barrett
& Co).-May wheat is in a very dangerous
position and I advise our friends not to trade in
this future unless absolutely necessary. can
see no relief for the large outstanding short in
-ereet unless Armour sells wheat, and no one
can tell what he viii do. Buying July against
short May wheat is no hedge at all.
Since Armour has shown so plainly the past
few days that he has control OF the wheat mar
ket there Is a good deal OF talk about how
much OF a line Of the May he owns The
ajority Of the estimates place his line at
Is OOe 900 bushels. Up 10 this week there had
been some question whether Armour had any
longer a very large interest ina the May de-