The sun., 1912-07-21
YEARS RULE WHEAT
4 WITH AN IRON ROD
l1c Chicago Operators Have
Been Covering shorts. How
ever. on the Decline.
REAR NEWS DISCOUNTED?
>1.ny Bears scout the Idea. but
Others Are still Afraid OF
Weather Scare.

n xhea, shows tho effect Of an avalanche
m. price has been swept from AT Al
-. height to something like the lost
[.,h. of a Tyrc,can valley. The down
y.,a ,ush ir,rclled BY big offerings. fav-
l.,.b,, weather at the Northwest and talk
:. I'M 200 ooo bushels in Kansas has been
,,rcs,s,,ble. All the big Chicago operators
,.re followed the downward movement
rh.re has been immense liquidation and
,mn,en.c selling for short account II -
.sid that tho slightest thing. almost
~b,spcr N the critical moment has ar
,4xyd, will star, an Alpine avalanche. Then
there Is q roar. downward sweep or
miles Of snow. leaving wide track OF
,d,.oiation. The similc is not inappro-
or,ate TO the worlds wheat markets. The
downward rush OF American wheat has
chilled and dcinoralized them.
Cool clear weather and the disappear
snce for the time At least or the black
rust danger have been the principal fac
,ors I'm the swift descent OF American
uriccs The sharp decline in the North
western markets was signal gun. Con-
fusion and disqualification followed. The
better crop outlook i'll Europe has GER
that the spring wheat crop in the North
sest Is TO be 100000. 900 bushels against
1911 900 900 last year. Lyle cautiously puts
u a; something over 100000, 900 bush.ls.
add.ng that after two lean years a fat
rear Is here Canada expects In three
Northwestern provinces 100000, 900 BUSH
Yls Its prospects are better than were
npec,ed In Kansas the winter wheat
krop is estimated at 90.000.000 to i00.-
nnA L,,.A .Aat tv,st t,,,st st,>ts
nj year Not improbably the whole
Lln,er wheat section west of the Missis-
ykippi River will do far better than at one
N.lme seemed possible. 1t will atone for
onuch that was bad east OF the river.
rhe worlds shipments thus far this sea-
son show substantial increases in the
United states India. the Danube region.
argentina and various other countries.
rhe crop IN Russia. Germany and France
d more promising New winter wheat
b moving more freely. The hedging sales
at Chicago against purchases Of new
wheat at the West and Southwest have
played u conspicuous part in the decline
Of prices,
Bulls are not extinct. however
You would think they were after such
u rough experience. They admit that as
ut the market shows little rallying
cover. But the season Is latc. They
dfkue tHdl SoiHetflnS may Net uApDen TO
the spring wheat crop. The worlds stock
Of wheat IL now only just about as large
as II was AZ this time last year. 4 few
months ago II was far larger. In some
foreign countries the crop will be smaller.
That Is the case In Rumania, Bulgaria.
Itay. Spain. Portugal and northern
Africa. while in Australia drought IL cut.
ting down The acreage. The crop in the
United Kingdom will be below the aver
"a hxA hoe
quality OF the French crop.
The shipments from foreign countries
fell OF rather sharply from those OF the
>7revious week that is. nearly 1000. 900
b''.Ahels The shipments thus far this
leason from Russia and Australia show
ute marked decrease as compared
nth last season. The American visible
lpply is nearly 10000. 900 bushels smaller
Ian year ago. Within a month the
orlds stock has been cut down some
1s, ,00o, 900 bushels
Bears snif contcmptuously at things OF
this sort and yet these factors may have
their eject sooner or later The price
t<s had severe decline. The old saying
q What goes ZIP must come down. but
II thing has certain natural and in.
trins'c merits. like wheat, may IL not be
equally true that what goes down may
como ur' Two things may yet have
sob"rins effect on the bears. First. a
wheat scare In tho Northwest, and second
the announcement that an export basis
has been reached Tn" other day reports
~ frost In the Dakptas and predictions
OF " for northwestern Canada had IA Sig
n!fcant effect, especially In conjunction
With reports or export sales Of No. . red
NJ Baltimore for Rotterdam The short
cvcTd looks ovcrcrnwded
/A s,dh"n "hange IN the news from
<Sood 10 had might easily produce bear
stampede, TheI" arc few or no indica-
lions that the worlds supply OF wheat
this year Is going To bc hurdensome. 4,
total cior OF o.00o.0o0 bushels In the
United states this year would be 90.
oo000 bushels below the high record and
only +o."o",ooo bushels mor" than last
yea. while yisiblc and invisible supplies
are noars that much less than then
" Is tho unexpected that aiways han.
pens The hcmbardmout Of the Dardar-
elles suihced 70 scare the bears Temporal
rlly. Th"y feared that a closing Of the
atra'ts 20 shipping would shut off the
Nussian oNp"I's from the southern prov.
noes = reduction in tn. supply abroad
%,u'd Onset in"r"aec In production hero.
"r"'hfr Euior" will consent 10 this
nessn'o remains TO b. seen but IL brings
uncertainty to tho wheat pit
Connecticut has to Il large extent sllar rod
,ne 'a'" OF wheat even II its weakness
Ide not been 20 pronounced. The weather
-,or corn has been in tho main favorable
ihs corn belt has been one vast forcing
pso' temperatures as high as Io6 I'm
nAIsas hs'" apparently done no harm.
.,ohlc clos" observers think the signs DoInt
diminished consumption Of corn In
d'or OF oats. which are cheaper Ind will
=; substituted by many feeders for corn.
tne aeprosslon inNheat moreover, has
,.1'uraH. reacted or corn. Recent rains
~ MAJ sas and Oklahoma tended TO con-
',, nrm IN" bears in their opinions as 10 the
.. t.,''lH'" course OF prices. Immense lio.
uu'"',o'I and much selling pressure on
III, snort sid" have lett very plain marks.
10y on" story is good Till another "a
.''n m" bulls have something 10 soy
w. 'or one thing the crop is not made
.e., even II Tho prosnects ere good I'll.
rZp'S ar" light. The contract qtocl In
Zhoasp ~ onl, third az large as ,ba,
',aI ago. l. e., $4,000 bushels
..nss'Hs' s,2S' 900 last ycar--and ,in ,is,
sn,, uIl'lF IN N" United States l., sone
,r,'oo r,"""' non bushels sniali.r than n y,nr ann
.h~ "'' mos" who think December corn
E,W, p"Hgh' on further declines
oUIi rorulr feeling al the Wcot 4. q,
,aNor "l selling tine market Th. uor,,.. ~.
VIII %, 49, largr, the American c,on
} q" likelihood win bc much ,,n,.
,,..,"' ivan That OF last year. and. 80
NcauN lntriatod oats NAV n~o,..,
.'.iahi> rlval 10 c.rn amony ro..5or.
~ 'h' west Hu, one thing is c.,,s,,'
( "n' ."u' tendency now il IN ov. r,n
a.u' o. '''t 10" short account This mav
SSH hfi- about sudden and .h.rn na;