The Washington herald., 1921-10-03
RAPID MARKETING OF WHEAT
SLIGHTSTIMULUS TOBUSINESS
Heavy Exports and Strong Foreign Demand
Keep the Crop Moving, But Merchants
Have Benefited Little.

The new wheat crop is flowing tC
market at an unusually rapid rate.
During July 10000 cars were re-
| ceived at leading markets. against
50,4sS during the same month last
year. Wheat growers are selling
grain at the thresher, either by
choice or under pressure of the need
| of cash to meet the deferred settle
ments of last year. ....
The visible supplies OF grain at
the end of August were about dou-
BILE the amount at the same time
last year. or about 43,00o.0o0 bushels
against 21,000,ooo bushels. Exports
of wheat were moving at a high
rate during August and exceeded
last year by a considerable margin.
The total exports OF wheat from
the United States and Canadian
ports exceeded 100000 bushels
during the week ending August 25.
which is approaching the record of
last September. when 14,2ls,ooo
bushels were exported.
Most of the exports are now
united States wheat. since the
Canad an crop l. late and the pres
ent visible supply is diminishing
Since July 2 the visible supply ha,
dropped from 12.3S4,00o bushels Ia
less than 7,000.0 900 on August 90.
During the same period the United
states supplies increased from
about 100000 bushels to Is. .ooo. 600
bushels. -
The heavy movement of whesr
was reflected in. the carIoadtngs of
grain reported by the railroads. A
new record was made late in July,
when over $4,000 cars were loaded
in one week against about $4,000
cars a year. ago. The estimated
csrry-over of wheat on farms and a,
other points on July was as. fol-
lows:
On farms. S.4s5. 900 1850 600 10 asi .ooo
rountry mills
4 elevator. 25.4ss.ooo ss.1sooOo 10 ass. ooo
Visible. s.sas.ooo 24574.ooo s.sss 900
-
Total. ss,7ss.o 900 los. .s74. 900 4s, Iae ooo
In view OF the continued heavy
export movement this carry-over
was not large and will be quickly
carried away in the heavy move
ment of new wheat to market.
The recent news on the worlds
wheat crop have all indicated a
closer balance between nroduct,on
and consumption than in, recent
wears. The drought in western
Europe: the fact. that Russia will
be on the importing side of the
ledger. and the shortage in pro-
duction Of other food stuffs ali tend
toward the conclusion that a later
demand might easily stimulate an
advancing market. The general
sluggish condition of business ap-
pears to have for the moment Off
set economic pressure which nor
mally would have had a bullish ef-
feet.
The selling Of the new wheat crop
was expected to prove a stimulant
to business and result in Increased
trade in the regions where the crop
Is centered. Judging by the changes
In, bank clearings however there
has been no such business improve
ment. Even in the agricultural CEN.
ters the steady decline IN clearinss,
has continued. The explanation
may be found to some extent in the
reduced Indebtedness by farmers to
their banks which Is shown in the
reduction OF discounts with the
Federal Reserve banks. Much of
the money derived from the sale of
early wheat undoubtedly went into
settling old accounts rather than
into new business. Farmers, like
others, are not yet ready to begin
to buy. That this attitude is widely
held Is borne out by some OF the
manufacturers Of farm supplies.
who have discovered that the
farmer will not buy heavily while
the prices Of his products are so far
below the general price level
The4atest summary OF the worlds
wheat crop. as a guide to the sup
ply available this year compared to
last, as reported by the United