The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-07-13
WHEAT lN4RKET UNSETTLED,
BUT GROWING FIRAlE,R
Buying Stimulated by Unfavor-
able Crop Reports and
= Small Stock.
CORN SITUATION MuDDLED
Cotton Has Narrow Fluctuations
and but Little Interest in
Trading.

Trading.
NEW YORK, July 12.-Greater firm
ness characterized speculative opera
tions in domestic wheat markets early
< lii the week. This tendency was large
4 ~ traceable to purely speculative In
fluences. Crop reports We're source
~ of disappointment to most traders. but
conservative merchants were not sur
prised by the harvesting and thresh-
ling returns. The action of the market
! indicated plainly that there had been
too much unanimity on the bear side.
1t had long been apparent that the
speculative element had been selling
. September contracts short with too
! much confidence, being evidently over
! sanquine respecting crop prospects.
The brilliant crop reports circulated
early in the spring We're misleading
and wcll-calculated to bring disaster
Ito those who were rash enough to
place too much dependence on them.
lat the outset this weak demand to
cover was prompted in part by the
Missouri State report, which showed
"a fall in condition from S4 per cent.
Il In June to 75. This suggested crop
& of only 23,0o0,000 bushels, against 29,-
900, 900 bushels a year ago whereas
at the beginning, 1t had been pro-
claimed that Missouri would produce
close to 40,O00,OOO bushels. The Ohio
report showed drop of Sc per cent
from "a on June list, this also stimu-
slating demand.
rss,.sss With the State returns In mind,
traders arrived at the conclusion that
M the report of the Department OF Ag-
riculture would prove less favorable
than previously estimated, and as soon
as the official statement was issued
1T was found that these fears We're
well founded. The condition given for
spring wheat, S9.4. suggested crop
I far below what had been looked for.
while the winter wheat condition of
SOC suggested yield also below eS-
The point most ,promi-
nently in mind was that the country
Twill have less wheat to spare for eX-
port this year. According to the Wash
ington report, farm reserves on July
list were only 33T97,ooo bushels, or
roundly o1,0oo.O0O bushels less than a
year ago, while the official visible
supply is 100000 bushels smaller.
The Weekend Advance.
Late in the week a further advance
was established, although toward the
= close, part Of the Improvement was
lost. Minneapolis took decided lead
I. In the upturn. and especially in the
instance of September contracts, which
caused little surprise, as the rising
trend was largely caused by reports
that sellers for the decline had be-
come frightened by rumors that the
snrine wheat crop was in danger or
injury by rust, consequent upon the
sultry weather, and hot winds, coupled
with an excess of moisture. In other
markets; short sellers We're prompted
10 cover partly by reports OF a larger
export business,
subsequently demand abated, and
with more pressure to sell there was d
partial recession.
sa Matters have been badly tangled IN
rho corn market, and traders have held
6Foff as much as possible. In view of
all the conflicting influences. the mar
.ket was feverish, with erratic varia-
Il lions.
On the one hand. the weather West
& has been almost perfect. and the crop
report of the Department of Agrlcul-
ture highly favorable. both asst acre
I age and condition. But the eXtraordt-
nary paucity of supplies was a great
@offset. There seems to be almost a
famine of prime or contract grades,
this keeping the market comparatively
4 strong, and especially on the cash and
old crop contracts. September con-
tracts have ruled higher recently, and
it is rumored that short sellers. par
y ticuiarly in Chicago. are apprehens.vc
s8of a squeeze.
Cotton Market.
The principal. feature of the past
week in TIE .sottoM market has been
= the failure of continued fine weather
and good crop accounts to develop
sufficient further selling pressure on
= either spots or features to depress
prices. II there was nothing in the
general situation and outlook on which
to- predicate a pun movement: the
markets failure to decline to any
further extent from such favorable
crop outlook. and the dullness OF the
4 speculation We're indeed pulling to
1.-The many advocates of lower prices.
From this it was argued that liquida-
i ton in the old crop options in the
Il market at Liverpool. as we'll as New
Orleans and locally. had run its course,
and such a large short interest had
been created in the new crop months
that the short side had become con-
4 Rested with too many sellers for the
decline for safety or comfort to the
leading market interests
Hence the talk of n sold out and
cversold" market has furnished the
3 principal restraint against further sell
e ing operations. This, however, has
been about the only hope there has
appeared for rally In prices as out
v siders have shown no disposition to
take any speculative interest on the
bull side, and the dry goods trade con-
ditions continue too slow for spinners
ito feel any anxiety over their inabil-
lily to secure all the cotton they may
want from the old crop supplies to
q meet their requirements until the new
crop is ready to come on the markets
In September and October. Therefore,
Il with nothing but the cheapness of the
staple compared with last summers
prices and statistical position that
does not appear to brighten spinners
into buying. on which TO bull the mar
Financial.
a ~ ~ "a vv1vv vru - II :, .