The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-20
Prices Rise in Sensational Way
On Heavy Buying by Out
silers.
Crop PROSPECTS NOT GOOD
Partial Recession Comes on an
Inclination Of Dealers to
Unload.

NEW york, May 19.--An almost I'M
parallcled state of affairs existed IN
domestic wheat markets during the
FRS. half OF tho week 1t Is many
months, IL not years. since such buoy
ancy and abrupt variations have been
soon. There are few who can remem-
her occasions when prices bounded UP
80 sensationnlly. That is large ad-
5yances and violent variations have
been caused in the past by war scarcs
or market corners. but such factors
were not in evidence on this occasion.
Many advances took place on Mon
day, which was day long to be re-
membered; July jumped TO l03 IL,
against Saturdays close at 091-s; but
December in Chicago was really the
leader scoring an advance OF eight
cents. Although number Of reasons
were responsible for the unparalleled
action OF tho market. the chief i'm
pulse wa sthe fact that the outside
speculative public mad become insanely
bullisf. which, OF course. created alarm
among shorts. and the latter. In their
scramble to cover. forced prices up
1-2Gl1c. per bushcl in few minutes.
and even tkcn they did not succeed In
getting much wheat.
nnsls for the Buying Orders.
These great buying orders were
prompted mainly by the fact that in
practically all sections the conclusion
has been reached that crops in our
own spring and winter wheat districts.
+ 4 BTilil- n SECTIONS
OF Europe. arc sure to be extremely
light. It was a strange feature OF this
buying movement that great many
factors which had been noted and rec
osnizcd by regular traders for many
days. or even weeks. should with such
remarkable suddenness prove stimu-
lus to the great body of Outsiders"
Another singular, II not wholly mex
plicablc. feature was the fact that al
most all OF the leading professionals
throughout the West were largely, II
not wholly, unprepared for this cpl
sode. While It is true that the con-
tinued cold weather in the Northwest,
with It's influence In delaying spring
wheat seeding. could not have been
considered as q factor until quite re-
Gently. 1t Is nevertheless fact that
every dealer OF experience should have
Worlds Shipments n Factor.
Another buying incentive was the
fact that the worlds shipments proved
much smaller than expected. and
brought about an important decrease
in the quantity on passage. Markets
abroad were also steadied to some OK
tent by the poor crop prospect on the
continent. and especially in Russia,
N rty R,,v,, tn !,
latter two having passed through n
long hot spell, unrelieved by rain,
which has also been a serious draw
back in parts OF Russia 1t Is there
fore assumed that importers in West
ern Europe will have to depend upon
us for much more wheat during the
coming year. At nidweek there was
decided lull in the market, the activ-
ity and excitement having subsidized
appreciably. and therefore the varla-
tons were neither so vide nor so
violent.
Nevertheless. the dealings were still
on fairly large scale, with the varia-
tons more numerous than usual. The
tendency toward more normal condi-
lions and the slightly weaker drift
indicated that+a big short interest had
been eliminated during the extraordi-
nary upturn, and also that holders for
the rise were Inclined to take in pro-
fits. The selling was stimulated largely
by better weather in the Northwest,
1t being warmer In both winter and
spring wheat territory. and also in
Manitoba.
How the Recovery Took plnce.
Late in the week there was a violent
and radical change in the temper Of
the market weakness being replaced
by great buoyancy with astonishing
rapidly, prices bounding upward In a
sensational manner. 1t was generally
believed that the renewed demornliza-
tlon was principally chargeable to
large speculative buying in nearly all
markets, but especially In the North
west, where 1t was stated that sew
eral big commission houses had bought
on an enormous scale. 1t was the con-
sensus of opinion that the return OF
this buying mania was chiefly caused
by the belief that in many places the
acreage of spring wheat would he a
good deal smaller than had been cs-
tinated.
Subsequently buyers for the rise
showed an inclination to unload, which
brought about partial recession. Con-
Bervatiye merchants are inclined to
consider the advance as entirely too
great and too rapid to be maintained.
They feel that although the damage
may be severe. 1t has apparently been
discounted BY the wonderful rise that
has taken place In tho past week or
two and especially since the Issuance
OF tho government report. Late in the
week, foreign markets did not seem
inclined to follow our advance, and,
In fact. were comparatively weak.
D d