Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-06-01
WHEAT PRICES AND rmE EXCHANGES.

TO return once more to the oft-repeated statement
that the grain exchanges force the price OF wheat away
down in the fall and away up in spring in order that they
may buy the farmers crop at . low price and sell it 1t q
high price. let US glance At the course Of the market since
some time last September.
During the threshing season last fall wheat 1t the
local elevator was worth about $3.50 a bu.hel. Any farm
er In the northwest could have sold his entire crop at
that price or something approximation it. II the farmer
was too busy to haul the grain right from the machine
and many farmers were-he could have ayailed himself
OF the machinery OF the hated grain exchange and sold
Tor delivery at q time convenient to him. The Herald has
In mind one man who sold his entire crop in that way. He
soio II wheat. went ahead with his blowing, delivered
the wheat when his blowing was done. and collected in
cash from IS cents to S1.oe \ bushel more than hs would
have received had he sold at his actual time Of delivery.
on the grain exchanges bought that wheat At the long
price, and there has never been a day since when the
buyers could have got their money back.
Whether wheat was too high last fall or has been too
low ance, the fact remains that it was higher, very much
higher. then than now. and it was higher then than any
one IN the business thinks it will be before the last Of
'uy. yesterday one could buy wheat on the Minneapolis
market for delivery in July At 31.7s IL.
While wheat has never approached the early fall
pfaee. deapafe the predictions Of politicians that it would
sell at $500. the price has nve4uated greatly. And it has
in response to crop conditions. In the lats
winter 1t was apparent that American winter wheat had
come through the season in excellent condition. In this
the reports of the government investigators and private
examiners were in perfect accord. The prospect was for
. eise yieiu OIL wheat. With that prospect the
natural result followed. The price went down. Later va
had unusually favorable seeding weather in the spring
wheat states and the price still weakened. More recently
unfavorable reports came from the south. Adverse con-
d1tions had wrought material damage in the winter wheat
fields. With the prospective shortening of the supply the
price advanced. So 1t has gone.
The conditions referred to applied to the United
States. They we're elements to be considered. They affect
ed the general situation. but they did not govern 1t wholly.
While the United States is a very large producer of wheat.
she Is by no means the only one. The Australian, Arren-
tine. Canadian and Indian crops must also be taken into
consideration. and on the conditions prevailing wherever
wheat Is raised an equation is struck. and a price is based
as that which will probably govern. Political conadera-
lions have their influence. Domestic disturbances in a
country are likely to diminish the purchasing power of
the people Of that country. The settlement Of the German
reparations question created a feeling of security which
was reflected in the tendency of wheat prices to advance.
The British coal strike has had a depressing influence on
the price. because il British industry is crippled the Brit.
i.h can buy less wheat.
There is not a fact related to the probable yield Of
wheat or the probable ability OF great purchasing nations
to buy which Is not influential in determining the price
of wheat on the great grain exchanges.