The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-02
big WHEAT DEAL
In The MAKING
ARMOUR MAY SOON FACE Sue
CESS OR A WATERLOO.
Chicago Watching Valentine Closely
The Big Trader Supposedly Long
from 100000 to 100000 Bushels
The Foreign Situation and It's Prob
able Effect Upon American Wheat
: Prices. .. ~
BY RollIn e. Smith.


Chicago, Oct. 2.-since Sept. 1 Ar
mour has been the dominant factor in
the wheat market. Armour has been
pronounced bull, and the advance in
December wheat from 1918 cents on
Aug. 81, to S6A cents on Sept. 2S,. is
credited to his operations. 1t is gener
ally conceded that this company has |
to 100000 bushels. Since the oper-
ations have been on such scale as to
overshadow everything else and to adj
vance prices cents, in the face of the
spring wheat movement, and that, too, |
with nearly the whole grain and mill
ing trade opposed to him, and with |
no encouragement from European mar
worthy of more than passing attention.
Various theories are advanced re-
garding the intentions of the Armour
company. One theory is that the COM
pany wants to- draw some wheat to
Chicago, to, fill it's elevators. But a
few, who, perhaps, have looked farther
below the surface, say that the Ar
greatest wheat deals ever attempted,
excepting only that of Joe Letter: Ar
mour presumably believes conditions
warrant very high prices before next
summer. A long campaign is expected,
and it may rea f re oo fh Noo fo 4 &c.,
600 bushels. Something may, of course,
change the plan. 49,
What Valentine Says. .lz,
In reply to the question, Why are you
bullish on wheat? A. I. Valentine said
to me today:
cause all the $1.15 bulls of last year are
- bearish this year, yet some of them are
waiting for a break to buy wheat on.
Also, / think the wheat crop of this
country was largely overestimated. In
stead of 7OO,0O0,000 bushels, the coun+
try raised but 634 0O0,O 900. This is but
S4,0OO,OOO more than the crop of last
year. There will be an increased con-
sumption this year, owing to lower
prices, great prosperity thruout the
- country, Increased population, etc. And
it is known that the apple crop is a
small one. Besides an increased con-
sumption, there are many holes to fill up.
Considering all these factors, we prac-
tically have no surplus for export.
"Now about the Canadian crop.
While it is large, England will want it
all, for England will get none Of the
Russian exports. The continent and
- North Africa will take all that Russia
ships.
'EThe European situation is very
strong, owing to shortage in the
many, and a reduced wheat crop in In
dia. It is estimated that the rye crop
of Russia is l60,O0O,00O below the ap-
parent average home consumption. In
Germany the potato and fruit crops are
also short. All this means an increased
consumption of wheat; therefore there
seems no good reason to expect low
prices for this years crop. Argentina
is an important factor, harvest coming
on i'm December.r% Even if the crop is
a good one, it. will all be wanted. But
should anything happen to it, prices
would rule very high.'
- Armour Against All.
just at the present time, it is Ar
mour against the world. Yet this
makes the fight all the more interesting
from his point of view. Nearly to 3
man, the trade says that he is month
to two months ahead Of conditions
that prices should have remained at ar
export level until large amounts Of
ported. Yet if Armour desires, to &C
cumulate stocks in his houses, and be
ieving that no large exportable surplus
exists, he cannot take this view of it
Some say that he will be buried will
wheat. It is not unlikely that he ha
known of the possibilities of the spring
wheat movement as we'll as. Others I:
he has overlooked this or any other i'm
portant factor, he deserves to be buriet
with wheat, good and deep.
A Long Pull.
The course Of the market during tn
next few days or week or two will
not prove Armour's position eithe
right or wrong. His argument call
for a long campaign, or the giving u
of his plan entirely. If the latte
- should come about, and it should appea
that much ado has been made abou
nothing, the name of Armour will los
much Of it's weight in the market an.
that of Valentine, it's terrors in the phi
No other house in the world but tina
of Armour could have made any pros
ress at all toward bull market durin
the last month.