East Oregonian : E.O. (Pendleton, OR) 1888-current, 1910-09-19
NO SPECULATION IN WHEAT MARKET
AND PRICES ARE DISAPPOINTING

Wheat prices thus far this year have
been most disappointing to those who
expected the enormous vdues of a
year ago to rule. says the Portland
Journal
Though those who have studied the
generally big crops abroad during the
current season prices recently In ef-
feet were surprising for their bigness.
While 1t is true that France suf-
fered an almost complete crop failure
the present season and therefore must
need and purchase heavily of outside
countries, France is one of the very
few European countries that did not
have good crop Of wheat this year.
The enormous shipments made
during recent weeks by Russia and
the Danuban countries Is indicative
of the big crops they have just har-
vested The worlds shipments dur
ing recent weeks were the greatest
In years for like period, and prac-
tically nine tenths of the shipments
were sent forth from Russia and the
Danuban fields.
Practically no Speculation.
One OF the causes OF the high pri-
ces that ruled here and elsewhere in
the United States during the 1909
crop year-in fact the principal cause
was the speculative tendency every
where. This condition is entirely lack
ing this season.
Big coups, such as were carried
through by Patten and others during
the past season, are likely to be con-
spicuous by their absence this year.
unless something unforeseen at the
moment should transpire to create an
artificial demand.
Patten made millions of dollars
last season because he anticipated an
unusual shortage at period when
everyone believed that good prices
would rule. He alone of all the big
interests had the situation gauged to
a point where he seemed to know
Just how much wheat would be need
ed during certain periods. Therefore
when the shortage did materialize he
was on hand with plenty of wheat
which had been purchased at low pri-
ces.
When the time came when additi-
onal supplies would be available for
worlds consumption. Patten had al
most cleared his bins. He had taken
profits. Others took losses.
Coast Spectators Get Pinched.
Pacific coast wheat spectators
were not so fortunate. nor did they
have the itemized information carried
by Mr.. Patten. They purchased wheat
when 1t was low, they purchased more
when II was higher and kept buying
additional supplies as the market
~ rtrt-a zrN
age for the season, while Mr.. Patten
saw one that would last but for a
period. When he was secretly unload
ink they were still buying.
These tactics cost Pacific coast
wheat spectators several million dol
lars during the past season. Some Of
them suffered losses that would stag
ger an ordinary business man. They
lost as high as 40c a bushe on many
thousands. and even millions of BUSH
eds. They sold for 90c or even less.
wheat that had cost them up to $3.50
a bushel. Some OF them have n por-
ton of this wheat IN their bins at the
present time. They are not looking
for a repetition OF that experience.
They are not specializing at all.
Present Demand . Necessary One.
With speculation out OF the way.
wheat is changing hands at this time
only as n need appears. Exporters
are buying only when they have or
ders to fill. Millers are buying spar
'ingly. and are not trying to outbid
the exporter as they did year ago.
II the foreign buyer Is overanxious to
get a certain lot OF wheat he is al
lowed to get II without molestation
from the local miller. The latter
burnt several fingers last season. He
wants to save the remainder OF his
hand from the fire.
As long as the demand for wheat is
no greater than the supply It would
be idle to look for extremely high
prices With the foreign markets
and their buyers making the market,
bids here are put UP and down as
the price OF cargoes fluctuate at Lv-
erpool There is no attempt at all to
''corner" the market for this plan Of
trading has gone out OF fashion tenn
porarily at least.
When Supplies Outnumber Demand.
This has been a season Of surpris-