The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-02-24
Explanation of Wheat
Price Jump; Grain Talk

George M. Palmer, president Of the
Hubbard Milling company and a close
follower of national and International
markets as they apply to the milling
business, yesterday made statement
10 The Free Press concerning the re-
cent sensational developments in the
wheat market in which the price OF
wheat in the Chicago Exchange jump
ed about six cents in one days bust
ness. Mr.. Palmer has made a close
study Of the situation and his expla.
nation of conditions, follows:
The present situation in wheat Is
the result oil many different influences
which have affected the market From
the beginning OF the crop year is has
teen well understood by those posted
on the production of wheat in this
country, and abroad that there was a
very close balance between worlds
production and worlds requirement CT
wheat Had it not been for the I'M
toward financial and economical con-
ditions prevailing not only in this
country but all over the world we
should never have seen wheat prices
as low as We have seen them on this
crop. The figures on the production,
consumption and export of wheat on
the 1921 crop are about as follows:
Government estimate Of production i'll
United States. 794,)00900 bushels;
Garry over on July l, 1921, all posi-
uons in farmers hands, in elevators,
in mills and as -four 1900, 900 bush =,
els; total, 907,000,000 bushels"
Estimated consumption varies con-
siderably, but it is fair to put it at
$50, 100000 bushels including seed,
winter and spring. Exports to Febru
airy IL have been about 2l2,000,000
bushels. If these figures are correct
and they are based upon the estimate
of the best statiSttians in this coIn-
try, it would leave los, 100000 bushels
for export and carry over on July l,
1922. We are exporting now at the
rate Of about 100000 bushels per
week, which is a very small rate as
compared with what we have eport II
on the crop thus far. If this rate OF
export continues we shall have in all
positions in this country as a carry
over on July 1St about 5000 900
bushels, but it must be remembered
that there is a large amount Of Durum
wheat which is unfit for bread pur
poses and there was a large amount
Of very inferior spring wheat grown
on last crop and probably consider
able of this wheat will never find lis
way to market, and if it does much
of it is almost worthless for milling
50,000,000 bushels carry over on July
] is a very small amount considering
that it means all the wheat in the.
country of every sort and kind-in
farmers bins, mill bins, elevator bins,
and in -four stocks. Broomhall, the
famous English statistician, estimates
the wheat requirements OF wheat
importing countries at 624- 640,0OO,000
bushels and estimates the shipments
will be 648,0OO,000 bushels. This
shows the very close balance between
supplies needed and supplies that can
be forwarded by all the exporting
countries"
Argentine Prices Up
ut has supposed that Argentina
would supply a very large amount OF
wheat to Europe and importers OF
wheat have for some little time not
been buying very freely in the United
States or Canada but recent develop
ments in the Argentine have shot
their prices up to a parity or above
prices from the United States and
the recent sharp advance in wheat
has been caused very largely by the
action of foreign markets. The stats
teal position of wheat in the United
States is very strong, indeed, and has