East Oregonian : E.O. (Pendleton, OR) 1888-current, 1920-11-20
EXPECTED REBOUND IN
WHEAT MARKET COMES
BUT IS SHORT LIVED
Strength and Buying Power
Last Four Days, Then Sub
sequent Downward Trend
Eclipses Previous Low Rec
ords.
(By Charles c. Browne, Of OveroecE
& Cooke Coz

vi Qo.
(By Charles c. Browne Of OverOeck
& Cooke COZ
The expected rebound Of prices in
the leading markets for wheat mater
ialized, Immediately following the sem
sational decline which temporarily cul-
rninated late last week. The strength
and buying power lasted four days.
Fifteen cents bushel was added to
the price before the bull ammunition
was exhausted. Many Of the over
confident bears had been forced to buy
in their short commitments as the
market advanced against them. The
absence of this class Of buying was
keenly missed, when subsequently the
main downward trend Of the market
asserted itself and liquidation again
became urgent. Wheat values have
broken off eclipsng the low records
established on the previous decline, or
the lowest thus far since the war.
Sugar and cotton, likewise are sinking
to new low-price records, day by day
Surplus Only Fair
Iif bNElN iIAtttli't - AhR
readjustment or defation Of practical
ly all commodities, which is a natural
sequence Of the initiation incident to
the great war. Undoubtedly wheat
prices would have sluI.:ped a year ago
had the remains OF a luxury wave and
the L. s. s2.23 guarantee not inter
yened. The world Is largely free OF
high priced fear, and are buying lei
surely. Worlds wheat surpluses are
orly fair, and at normal prices and
satisfactory financial conditions
abroad, any accumulation Of stocks
would ride lightly on the public specu'
lative shoulders, pending such time al
the consumptive requirements vii
overtake the available supply. Lates'
reports indicate that the grain growing
countries of the Southern hemisphere
have all but secured bountiful crops;
India, Australia and Argentina are
already pressing wheat for in import
ing countries british wheat stocks
are now $4,000 900 or $1,000, ,000 over
last year. Fortunately the greater
part of the surplus wheat of the U.
S. has already been exported or sold
for export. II is estimated that not
over 100000 bushels available for
export now remains unsold. This
relatively small quantity, if sold
abroad, must come into competition in
the worlds markets, with financially
distressed countries. Worse than that
must. be sold to importing countries
whose money exchanges have collaps-
ed in this country. current financial
anxiety in this country. the Increase
Of unemployment and the pronounced
business depression, retards the arri-
val of speculative support to stand in
the breach and carry the burden.
Production Enormous
The most depressing factor at the
present time, overshadowing the grain
ttaue is the impending movement Of
record breaking corn crop. The
production Is so enormous. and the
shipping and consumption demand so
negligible at this time, together with
the shrinkage of the hog and cattle
noruiatlons, indicating less than usual
will be consumed by feeders, forces the
belief that an Unprecedented volume
~ ENtH VIII ft ItuEtu III lIlt AulIdIb
pit This acts as a great pail hanging
over tne market, and its influence
upon speculative sentiment is extend
ed to all grain trading centers. This
largely accounts for the relapse now
in progress in the wheat trade. The
above conditions would suggest tat
corn will find its lowest prices on the
crop, within the next three weeks.
Past history shows corn makes bottom
-ecords on bumper crops as rule late
in November, or early December In
other words the big crop and expected
heavy receipts are discounted by the
time the crop starts 10 move. AT such
times is when the much abused spec
ulator performs a most valuable func-
ton. The speculative public buys con-
tracts for future delivery as an invest
ment thereby providing an unlimited
market for absorbing great accumula-
tons of grain. while any other ade-
|quate demand is non-eXisIent.
Change Expected
1t is believed the general business
tcne will change for the better with
the coming of the new year. Buying
power in many lines, which has been
held in allegiance will probably break
loose, and psychology of a more opti'
mistic character take hold of the ma
ton as the time approaches for the
Republican Administration to take the
feins of government.
The security market is still much
depressed, and many good stocks and
bonds are undoubtedly on the bargain
counter. Liberty bonds suffered
sharp decline due in part to the latest
offering by the L. s. Government of
short term treasury certificates bear
ing 5 ga per cent interest.
The fall in the market value OF
Liberty bonds has in turn increased
the yield to an attractive figure for the
premier investment from the stand
point of safety. The unsettled condi-
ions generally has provided rare OPP
portunity for the investment of funds
in issues of unquestioned merit. 1t is
not reasonable to expect the present
high yield based on depressed market
values to continue. Prices may even
go lower but this country is not go
ing to the bow-wuws or the Bolsheviks.
Duns says Indications FOR
a,., Morn I-nNnFnIIA