The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-06-08
WHEAT PRICES DROP AND
LEAVE TRADE DEPRESSED
Sharp Break in Latter Part o
Week Was Only Partially
Checked.
COTTON MARKETS IRREGULAR
Violent and Frequent Fluctu
atoms ON Variable Weather
and Crop News.

.--
NEW YORK, June IA majority OF
traders were surprised at the great
strength displayed by speculative
wheat markets carly in the week, as
many OF them had counted on n decline
as soon as the May denls were over
Many based this expectation upon the
belief that the country dealers had been
encouraged by the prospect of q corner
to hold back their grain as long as
possible. Needless to say, the failure
Of the primary movement to increase
perceptibly came as great surprise
to believers in lower prices. AS mat
ter of fact. the receipts at the chief
primary markets are still smaller than
they were a year ago, and especially
at spring wheat points thus confirming
recent reports that reserves in the
Northwest were extremely meagrc.
Factors in the Speculation.
1t was agreed. however, that the
movement of winter wheat would have
been larger had it not been for the
extremely long period of heavy rains
In Kansas and through the Mississippi
Valley. AS a rule reports from mar
kets in Europe were rather conflicting
and unsatisfactory. Holders here were
confused because Of the weakness in
European flIluHeSS was ca
pected because of the many reports OF
damage to crops on the continent by
the hot and dry weather. TIE total
worlds exports proved to be luther
larger than expected, although still
FAR below estimated import require
1nents. Then. too, big reduction was
reported in our visible supply on Mon
day and in the worlds visible supply
on Tuesday.
Late in the week the market was
greatly depressed, prices declining
rapidly with only Insignificant rallies.
The sharp break was attributed to
Tree general selling. and bear pressure,
prompted partly by the discouragins
tenor of cable advices. but mainly by
better weather West and moro favor
able crop reports. In the northern
part of Kansas there was further un-
timely rainfall. but otherwise the wea-
Sher was excellent. and therefore it was
che general impression that harvest
Ing Will be well under way in parts OF
the Southwest next week.
Selling was stimulated partly by
favorable reports from several authen-
tic sources. and especially from the
Ohio State Board of Agriculture. which
makes the condition "a in that State.
against 80 last month. and a yeac
ago. Furthermore. reports from Kan
sas ,intimated that the United States
crop agent there will, in his next re-
pert. raise the area in that State to s.
100000 acres as against 5,TS2.000 last
month. which suggested a yield of o.
$4,000 bushels. This increase will
however. be partly offset by decline
IN condition. The down turn in values
vas checked partly by increased inter
"a ~ st
bought more freely both of old and
new for forward shipments.
Dull Corn Market.
Most Of the week trade in the local
Germ market has been decidedly dun.
AS rule, traders are inclined to hold
aloof. Most of them consider prices
high. but owing to the light supply,
and fear of manipulation they do nos
dare to sell short, at least, with any
freedom. One of the most important
features was the sale of a part cargo
OF Argentine corn, said to be, about
5000 bushels. to arrive next month.
This unprecedented transaction natur-
ally created great interest, and 1t is
Claimed that further sales OF this
character VIII be made unless supplies
o. domestic corn suddenly become larc-
ei and prices weaken.
Unfortunately the movement of corn
from the West continues small, not
withstandins the unusually high prices
current. Local dealers, as well as en-
porters, have been comparatively idle
partly because of the great scarcity OF
desirable grades and the high views
of holders.
Cotton Markets Week.
1t was week OF great irregularity
in the cotton markets, with violent and
frequent fluctuations on the variable
weather and crop news. sharp adj
vance was begun with the resumption
of business on Monday. which carried
prices up cents to As points for the
general option list here. July sold a,
1927 on this movement; August, 1ol1,
october. 800; December, 9.5l. and jan
nary. 9.47. These high prices were
reached after the publication of the
governments crop report on Tuesday
This proved, on a closer study of its
figures in detail by States, as more
nnfavorable than many had supposed
on the first reading of the average
condition of the plants and the esti-
mated acreage
There was so much speculative buy.
anE by trade interests and Wall Street
eoeretors. however, on this rise that
tho market got into somewhat over
bought condition. 1t has since reacted
about 20 points from the top. chiefi,
on the pressure of profit-takng sale.
and some resellins on the lull in the
buying movement. Other factors helm
ing along this reaction have been The
slightly more favorable news from til.
flooded sections of the cotton belt ant
Tic dullness of the foreign markets
where business has been interrupted
by the Whitsuntidc observance OF al
most week Of holidays.
sS Significance of Government Figure.
The governments crop report, an
nounce1 on June I'd, was the firs,
MONTH areport OF the season Its esti
mate of the average condition of TIL
plants as I9.7 per cent. was figured
up 10 May 25th. AS it compared witt
70.5 per cent the same date veal
ago. il looked good to the outsider
but not near so favorable when con
irasted with the average condition O
SIS per cent. for the previous year. o
with S2.S per cent, the ten-year aver
age II is, in fact, the lowest conditio
for the start Of any crop on recor,
In the last tweniy-eight years. wit
The exception of tho estimate OF 20.
Ger last year, as previously referred Il
and st.e In 1905, and 741 in 1904