Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1914-08-14
WHEAT IN STRONG POSITION

Not IN years mas the wheat market
shown so quick and so radical an
upturn in velues as during the past
few days under stimulus of war de-
velopment in eastern Europe. From
a dragging and iow-priced level
throughout the early summer coin
cident with knowledge of splendid
crop conditions, wheat bounded up
ward 10 to Is cents a bushel; in a
single day 10 cents advance, even
though part of this was lost the next
through profit-taking sales. Then
May wheat at Chicago went above 81.
The materially higher price level,
should it continue, which now seems
not at all improbable, is coming at ex-
actly the right time to be OF most
benefit to farmers. Not infrequently
after the crop has mostly left first
hands, middlemen reap generous
profits through advance in winter
prices. But this year the higher level
is coming directly at the beginning
or the marketing season.
Carefully handled, there is every
reason why the splendid domestic
crop should prove not only of great
direct profit to growers, but also ma
terially improve the general business
situation, and thus help agriculture
in every direction. Market condi-
tons are bound to show more of less
uncertainty from day to day during
the next few months, yet a brief sur
yey of worldwide conditions Will in
dictate the strong position of domes
tic agriculture.
The things which at the nom ent
stand out most prominently are, first
of all, the tremendous consequences
in case the war should not be con-
fined to Austria and Servia. but
should involve all the great powers
in Europe Second, is the grain crop
situation, and the fact that the
United States appears to be this sea-
son favored in the highest degree, in
the way Of a generous surplus for
world markets at time when other
producing countries show only a nor
NAL, and in many cases, a deficient
yield.
This does not necessarily mean
that America can absolutely dictate
prices to be received for its wheat
crop, yet at the moment conditions
point to a healthy and perhaps con-
tinuously urgent demand for our
surplus of foodstuffs. In this con-
nection it should be remembered
that a general conflict in Europe
would probably stimulate industrial
activity in the United States and this
III turn quicken the home demand
for food products, ever at firm
prices. In the very highest circles
it is pointed out that a big war
abroad would result in greatly in
creased sales of products of the soil
ard manufactures.
Immediately following last week
declaration of war by Austria against
little Servia, the Liverpool millers'
association advanced the price of
flour one shilling a sack, and tension
Ill other European grain markets
was equally noticeable. The belief
prevailed, both in England and on
the continent, that in the event OF
widespread European conflict, food
stuffs would rise to high level, es-
pecially should Russia cease to ex-
port cereals; and that all Balkan
wheat would be withdrawn from the
worlds markets.
Whatever may develop, should
more pacific conditions prevail, the
sharp upturn in domestic wheat
prices last week added many mil
lions of dollars to the value of the
home crop. On the day when the
excitement was the most pronounced
wheat at Chicago went up 10 cents a
bushel. Applying this to a 900-mil-
lion crop suggested paper" gain
- T"N,NON JNOV III TIC value VI the
wheat grown by the farmers in this
country, even though this phenom-
email rise was followed the next day
by substantial decline. Corn and
oats, while not so keenly affected,
also sold at the highest prices of the
season.
So far az can be determined at
this early date, and so far as prelim-
mary Teports are available, the
wheat crop of the world in 1914 will
probably DO substantially smaller
than that of 1913; so far as surplus
countries are concerned, the world
crop is bound to be much smaller.
The United States is the only
country which shows really big
crop, and the domestic yield, thanks
to the magnificent winter wheat
situation, promises to outstrip any
thing hitherto reached, with sur