The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-01-29
BEARS BUSY IN
\ WHEAT MARKET.
American Wheat Must Get On a
Lower Basis Before Hope Of
Big Foreign Business.
WEATHER HELPED THE BEARS
WEATHER HELPED THE BEARS
Bull Leaders Depressed Over No
Encouraging News From
Any Source.
Especial to Tho Tlmes-pispa,ch.)

Especial to Tho Tlmes-Dspatch.)
CHICAGO, January 2s.--1t has been a
week OF bcarish influence In tho wheat
market. Prices have slumpcd sharply for
tho May and tho traders who have been
contending for weeks that American
wheat must get OH lower basis before
there can be any hope OF extensive for
egn business feel that their theories arc
being demonstrated.
1t was a chaotic week beginning with
the severe storms which put most OF the
time. The weather had q depressing effect
upon the bull leaders and with their sup
port half-hcarted and lacking encourage
ment in any news received from domestic
or foreign sources, there was nothing in
the way of the bears to press their adj
vantage. The surprising thing was, not
that they depressed prices two cents or
more, tbut that they did not do more than
that.
That they did not have tho full courage
OF their convictions was shown from day
to day in the fact that ON successive
breaks there was Inevitable covering OF
sufficient volume to check the downward
tendency.
In tho northwest there was informt-
ton OF some further expansion in the
manufacture and sale of flour but the
enlargement was at no time impressive in
view of the immense of stores of wheat
In that part of the country and the
continuance of receipts from first
hand. So striking is this movement and
accumulation that there is more talk
than ever that the spring wheat crop has
been underestimate all season. by the
government, as we'll as other calculators.
There Is now substantial evidence that
the movement In the northwest Is likely
to continue to the end OF this crop year.
The argument setting forth regarding
the advantageous position this country
holds with reference to the markets of
the world has come to- naught thus far.
Statisticians had 1t thai Manitoba was
not in a position to deliver much wheat
promptly on account of It's long distance
from tho depots of delivery. that Russia
had dropped low in the ranks OF providers
of wheat, that India might be counted
practically out Of the market from lack
of supplies and that Argentine was not q
contender for Immediate demands.
The unavoidable conclusion, they held,
was that America would necessarily be
looked to as the chief source of sup
ply, regardless of prices in Manitoba. The
feet Of the case have not proved that the
point was we'll taken. Europe Is yet to
manifest any particular anxiety over the
situation. Foreign buyers have not been
convinced that the time Is at hand when
they must allow themselves to be die
tated to by the American shipper.
Whether the volume afloat and on the
way by land is large or small-a week s
supply or months suply-forcign COM
placency remains at high tide Meantime
shipments are going out from Argentine
in larger and larger volume and Mani
toba is looked to for Il share of wheat
because 1t is considerably cheaper than
American wheat.
| The local bears are of the opinion that
the price of wheat in this country must
get down to q point where the accumu-
lating stocks may he made attractive to
| foreign buyers. They take the price at
which Manitoba wheat Is selling abroad
as their measure of what would be re-
| quircd in the way of further reduction
| here, and taking into account the DIFF
ference In quality, they estimated there
| must be an additional decline OF about
| five cents to meet Canadian compete
ten.
This comparison is made with north
western spring wheat in view. There arc
some grades of winter wheat which are
much nearer competitive LASTS.
| According to the northwestern miller
there was an increase of 1900 barrels in
week before last, and it is expected that
the output last week was 5000 barrels
in excess of the week before. Domestic
lbusiness is on a limited scale and the
Isamc may be said of sales for export.