East Oregonian : E.O. (Pendleton, OR) 1888-current, 1921-01-15
tBy Charles c. Browne, of Overlook
& Cooke Co.

tBy Charles c. Browne, OF Overbeck
& Cooke Co.
The action of the wheat market
during the past week has proved quite
reassuring, if not entirely satisfactory
to holders. In line with our article
a week ago suggesting a stronger sit
uation and further advance. the mark
ing up OF prices continued with little
Interruption, until more than 12c a
bushel had been added to the price
OF a week ago. At the outside range
of prices, attention was directed TO
the fact that exporters were not fol-
lowing the advance with purchases.
Bids for export were generally 10
SC too low TO catch the market. there-
fore export sales dwindled to small
proportions.
The domestic milling demand. which
has been on the increase of late,
was not so much in evidence toward
the close of the week, especially when
ii was found that foreigners swere not
competing for supplies on the extreme
advance. The speculative trade
found itself in an overbought condi-
tion with the short interest in the
pit mostly eliminated by the rather
rapid advance, as expected a natural
reaction followed, cutting away about
&c of the recent advance. 1t is the
opinion of leading interests that for
eigners will again be in the market
on any decline. Argentine offerings
are expected 10 enter into keener
competition with American wheat in
foreign markets from now on.
Bradstreets reports total export
clearance for the week at 6,2S4,S03
bushels. Clearance Friday, not in
cluded in the above, we're $4,000 bn
shells. Total Y. s. Visible supply wheat
ig 41,Is3, 600 bushels II, ,961.000 bu-
shells. Last year stock Of wheat ami
flour in the. United Kingdom aanal
s2.s0s. 600 bushels against $4,000. 900
bushels. Canadian stocks Of wheat in
ytore and afloat an 20,l6O.0o0 bushels
against l2.6S5.O00 bushels last year.
surplus Believed Small
Ii is believed that the surplus avail
able for export remaining unsoId in
the IT, 8. is now reduced to a negli-
gihie few million bushels. Assuming
that this Is correct, it does not follow
that wheat will necessarily advance
to extreme heights. Foreign buyers
are likely to draw supplies from the
southern hemisphere. leaving the do
mestic milling interests in this coun-
try free from outside competitive bid
ding. usually a feature Of advancing
markets.
One Of the outstanding features Of
the wheat trade this season is the fact
that May contracts are selling at a
discount of s to lee per bushel under
the nearby futures and even a great
er discount under cash wheat, instead
Of the usual three or five cents pre-
MUM, or carrying charge, on May
wheat. This provides rare oppor-
tnnity for farmers and others in this
country who are holding their wheat
for higher prices.
As an example: Assuming the sioF'
age. insurance and interest on wheat
held until the end OF May would cos1
the owner approximately Ice per bu-
shel. A sale Of the spot wheat woaid
purchase of May contracts for an
equal quantity. or any part which It
il desired to hold for higher prices
would secure the present discount 81
IL Ice per bushel. and srobabie re- /
eetahlfshnent Of the normal premium
Of to SC per bushel for May con
tracts over the nearer months; gain
of say lsc per bushel.
Might Mean IS cents
This simple operation. which is no
ihiRg more or less than good bust