Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1920-10-08
THE WHEAT MARKET

1t is hard to explain the present
slump in the wheat market except
on the theory that the spectators
are trying to make up for the time
lost, while the grain exchanges were
closed during the war, by playing for
that many farmers have to sell early
to meet current expenses, and that
others can be stampeded into selling
by a falling market, they are fore
ing the price down to the lowest pos
tibie point.
The break in the price is certainly
not justified by the law of supply
and demand for the best available
authorities agree that Europe will
egain require all the surplus wheat
of the United States. The following
article, which appeared in the Wall
Street Journal OF September 20,
throws considerable light on the sit
uation.
Foreign statisticians claim crops
of Europe are better than last year.
and that import requirements will
be slightly less. Notwithstanding
this the evidence all points to
close marketing of the worlds wheat
and rapid movement of the United
States supply.
Bradstreets reports show that
between July l and September 9,
exports of wheat and flour from
United States and Canadian ports
aggregated 100,944,200 bushels A
year ago they were 67,114,07S and
in 1918, 54,428,46 Yet the world
visible supply is only one-half what
it was a year ago.
These heavy imports are to meet
a food requirement of more than
100000 bushels, according TO
the best authorities in the United
States and Canada. The A. L. Rus
sell calculation places possible i'm
ports at 70O,000,O00 bushels. This
calculation, of course, assumes that
imports would be equal to normal
requirements. Against this need, the
statistician places a possible surplus
in the exporting countries of 602,-
100000 bushels.
France, Italy and other European
countries with normal import needs
of $50, 100000 bushels, may not be
able to purchase their full require
ments.
"Broomhall, the British statisti-
clan, month ago, estimated prob
able imports of 100000 quarters,
or about 560,000,000 bushels. The
British bread subsidy of 5 d. to the
4-pound loaf is to be withdrawn by
March |. On September it was
Withdrawn. The consumer, of
course, must pay that much more for
bread. This may induce some econ
omy. Rome has increased the price
OF bread Central and Eastern
Europe, Broomhall says, is stepped
IN poverty, For these reasons he
looks for greater economy in use of
wheat. But all facts seem to point
to an import demand of at least
500, 100000 bushels of which AGO.
100000 bushels must come from
North America Over 100.O0O,O00
bushels have already gone out, the
bulk from the U. S. Much of the
Canadian surplus will not get
through the lakes till spring; India
is holding off till more certain of
next harvest; the other two coun-
tries cut wheat in January and Feb
ruary. The one conclusion Is that
foreign importers are disposed to
draw as much as possible from the
Z. S. before the end of the calendar
year"
The above statistics indicate that
the sudden slump in the market Is
due to artificial rather than natural
causes, and that, unless the farm
ers are scared into selling, there is
good reason to look for an advance
in the price before the December de-
liveries.
WM. GOODYEAR.