The Kendrick gazette., 1920-12-03
The Wheat Situation
By E. W. Lutz


vance materially. it seems very ap-
propriate to present few facts re-
gardlng the situation which are
we'll worth considering.
There is great deal written
about the shortage of wheat and the
consequent high prices which is not
correct and is little short of prop
uganda. Most of such articles are
written by people with the best of
intentions but who are badly mis-
informed. Such information is not
only harmful to the producer. but
to everyone in business who is de-
pendent on the farmer. Most OF
the farmers are holding their wheat
and paying interest, insurance and
storage charges or if they have not
borrowed money on their wheat
they are asking the merchants to
wait on them for the payment of
their bills.
The farmer can hardly be blamed
for holding his wheat, if from the
best information obtainable, he be-
Iieves there is a world shortage and
the present low prices are the result
of manipulation. 1t is human ma
ture to believe the things are true
which we hope for and this is one of
the causes of the prevalent idea of
the shortage of wheat. 1t is pos-
sible for the market to be manlpu-
lated to some extent by giving false
information through press dis
patches and otherwise, regarding
gr rowing or harvesting conditions
IN wheat growing countries, but
this is only of temporary nature,
for as soon as the facts are known
the market Immediately rebounds to
it's proper level. The world is too
large to be readily managed and yet
1t Us so small that we must take into
account conditions throughout the
whole world in arriving at our con-
clusions.
The pre-war importations of wheat
and rye of Western Europe were
about $4,000, 600 bushels, but con-
sumption has been materially re-
duced. A wonderful reduction in
consumption has been effected by
the compulsory use OF substitutes
and the lengthening process in mill
ing. The Market Reporter" the
official publication of the United
States Department of Agriculture
calculates that consumption ir
Europe last year was 26 per cent be-
low pre-war requirements. Europe''
production has been considerably
! higher this year than last. Tht
most reliable estimates of Europe
: wheat and rye importatiOns tor th'
. crop year ending next June is $40,
: 600, 900 bushels, and that of othe
= importing countries at 4U,OOO,O0
bushels; in all $50. 900, 900 bushels
The principal countries producln,
e surplus of wheat for exports ar
the United States, Canada, Argen
tine, Australia and India. By re
ferring to the market Reporter
of the United States Bureau O
Markets, you will find that tn
u United States could spare at tn
u beginning of the season 25O, 900, 90
> bushels. The Canadian surplus
given at lS4,000,00O bushels. Au
: tralia and Argentine will harvest i
December and their crops are tar i
{ excess of the average, owing to tn
favorable weather conditions. +
9 Inmates of the exportable surplus
:, Australia are given at $4,000, 900
y ITO, 900, 900 bushels and that {
Argentine at 112,0O0,000 bushel
- The above figures Indicate tn;
- there is much larger surpl'
70 available than was imported
Europe last year. This is wlthoI
:, taking into account the India crt
which is marketed IN March, and
always an uncertain one. La
year India produced 100000
bushels over home requirements,
which amount only 100000
in bushels have been released for e
o. port. 1t is presumed that the T
an mainder is being held awaiting t
n: development of the new crop.
e- favorable conditions obtain for t
of marketing of the new crop the
at will undoubtedly be large pt
,st tion, if not all of the old crC
on released tor export.