The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-02-24
WHEAT PRICES TO BE
SPECULATIVE after
U. s, CONTROL ENDS
eY WILLIAM r. sANeoRN

eY WILLIAM r. sANsoRN
What do you think will happen to
wheat-the price Of wheat, when the
grain corporation relinquishes control
on June 30th? After that date wheat
will once more be a speculative article
on the boards of trade, just as of old.
Certain it is that speculation Will al
feet values in degree, that wheat Will
advance and decline within certain
limits, from week to week and month
to month, as always.
What the SPECTATORS may do will be
but of secondary Importance; whether
the range in price will be at a higher
or lower level will be based on funda-
mental conditions, over which the
speculat tor, shipper and grower alike.
will have little or no control, unless
there should be an effective combina-
ton to hold wheat, if price is consid-
cred too low, or one which would
feed" the market without glut, in
case of large supplies.
There is no tendency in either direc-
ton now, nor are any such plans out
lined, though there is here and there
some discussion along these lines
among minor groups OF farmers In
their organizations.
wheat ana Flour surplus
There are two outstanding facts to
he considered in an impartial survey
Of the outlook for future grain prices.
The first is that we shall have Il large
carry-over of wheat into the new crop
is we'll stocked with flour, bought
mostly for European needs, as esti-
mated, and for which there Is insult
f{1{1 nd 70 oh cnrh
already been milied, largely because
of European monetary conditions and
the inability of several countries to
buy flour according, to their needs.
So true is this that at meeting
Of the American relief administration
in New York it was decided to appeal
to the U. s. Government to permit
the sale on credit of the 10000, 900
barrels of flour now held by the grain
corporation to feed the millions of
starving men, women and children in
the cities of Poland and throughout
Austria, Hungary, Bohemia and Ar
menia." This appeal was issued on
Feb. %.
These 100000 barrels Of flour
represent nearly 100000 of wheat,
which II sold as above or absorbed by
Europe in the regular course of trade,
would reduce the surplus in sight at
the time of the coming harvest.
Our Estimated Surplus.
The second important factor in fu-
ture wheat prices is the condition OF
the winter wheat and the acreage to
be planted to spring grain, and which
is expected to be largely increased be-
cause of fly damage to early planted
wheat last fall. No one may predict
the size of the coming crop and prices
will largely 0epend on this-also as to
whether Europe shall have an abund-
ant harvest, and Russia once more ar
ranges for export of grain. This is
within the possibilities, If not direct
to America, then through importers
In other countries and thence to our
ports, in limited way.
But the carry-over promises to be
large, aside from all other considera.
lions. This may not cheaper wheat !;
indeed 1t may rule higher than pres
ent guaranteed price, regardless, be-
cause Of a light crop in 1920. 1t all
depends AS to the amount of the
promised surplus, or rather leftover
grain and flour, of which there Is al.
ways supply at beginning Of harvest,
of course, the Chicago Tribune's mar
ket editor says:
THE supplies OF wheat and flour in
the United States are unusually large,
and indications are for a carry over
of $50 to 200 millions Of bushels of
wheat on July 1. Consumers, dis.
tributors and millers are loaded with
flour, and millers have big supplies of
wheat, and we are steadily drawing
near to new crop"
Sixty Million Barrels.
A New York wire informs us that
cur government has 60,00O,000 barrels
OF -four (which it can not sell abroad
for cash" and it is in relation to the
stock now available at the seaboard
that the American relief administra-
ton has made its appeal
1t is a fact, too, that wheat has had
p set back-not from government
prices, but from the high premiums
paid for fancies, and all better grades,
by millers Of high patents and adver.
tised brands. 1t is also a fact that
our ocean freights are down to 40c
and soc per 100 lbs, the lowest since
war days, but that has stimulated
wheat exports but little recently.
Wheat prices and premiums have
doubtless kept up the price of corn to
a degree, and surely so of all feed
stuffs. Corn, which sold at Nebraska
farm sales not long since at $1.40 to
$50 is now going at about $1.20 at
such sales, Omaha reports, although
farmers not holding sales are still hold
ing corn, as a rule, and little is going
to market. This, too seems to be
true as to other corn belt states.
We are making no predictions