Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-09
WHEAT MARKET
DECLINE SEVERE
Financial Influences Are
Considered Chief Cause
s Of Slump
(Herald Special Service.

minneapolis, Jan. 7.-One of the
most sever ~one-session declines in
recent months started the new year
in the wheat market, with financial
the chief cause. There was
further selling for the account Of the
big eastern commission firm which
failed late the previous week and was
heavily long of wheat, corr and oats.
Additional factors included the taking
over Of a $1,000, 900 Chicago bank,
said to be in difficulties by the, largest
bank in the city to avert, trouble. the
causing general uneasiness over'
financial conditions. The New York
stock market also weakened badly,
Winnipeg wheat broke 4 IL q 5c- in
line with American markets. and
when selling once started in the
wheat market here and elsewhere
liquidation on stoploss orders took
the market out of control. -
Local futures declined 6 5-sc and
Chicago was off @ &c at the close Of
the initial session. Support rallied
to the market overnight and at the
same time there was encouragement
in the export and -four markets. The
big decline caught good orders in the
former, with sales for two days es-
timated at 1000, 900 bu., and. mills
here, through the northwest and in
the winter wheat territory made good
-four sales. The export business was
mainly in Canadian wheat, but ESQ.,
900 or more was from the gulf. ~
The result was a sharp rally We'd
nesday, prices regaining we'll over
erately to the recovery on Thursday.
On the upturn export wheat turned
quiet again and flour sales fell off
sharply. Speculative buying also
failed to follow the market up and
a reaction resulted.
Highest prices of Thursday were
4 1905 lie above the weak close
OF the first session of the week, and
a 1c setback, followed on Friday.
Closing prices for. the latter session
were 2 5000 1-Sc below the close of
last Saturday. July was weaker than
May, partly because it. was less &C.
tive. .&a
Lighter receipts at Winnipeg, due
in part to severe weather, caused a
steadier tone after the Tuesday break
of 41-2@5c. Decreased pressure of
hedging sales and taking off of hedges
as a result Of export business made
a good rally and futures were only
2 S-8 @ 2 5-Sc under last Saturday at
the close yesterday. Cash prices in
the Canadian market were weak on
the break, but premiums rallied 1c
and No. l northern was 8 1-2c over
May though last Of the week. with
No. 3 northern 12c under. No. 1
northern was &c over a short time
ago.
The visible supply increased a shade
last ,week-37,0 900 bu.-and the total
now is 4s,468,000 bu., against 43,063,-
900 bu., asst year. Total U. s. and
Canadian visible is 1O5, 000, 900 bu.
against 70, 900, 900 blu. last year. The
Bradstreet's weekly report on the
worlds visible showed a decrease OF
100000 bu.. due to the fact that
| stocks in Europe and afioat decreased
heavily. Total worlds visible is $780,
821, 900 bu., against 155,96S,0 900 bu. q
year ago. y.
On the basis of the higher govern
ment crop totals Of last week it is
figured the United States still has u.s.
coo, 900 to 100, oo0. 900 bu. to spare Tor
export. At the present rate of buying
for foreign "ccount there would be an
ample margin.
Rains were reported early in the
week. causing nervousness over the
Argentine crop. but a Broomhan cable
Friday said weather had turned clear.
Recent rains. however, caused some
delay to threshjng and movement.
Corn market at Chicago had to take
large receipts and e. although
many believe prices cannot go much
lower little speculative buying devel-
oped except on setbacks. Local corn
receipts continued liberal, but there
was a good demand from nearby and
western feeders and from eastern
markets. A fair sized lot was sold
direct for export from here. Hus-
sian relief purchases at all markets
for the week were ] 500, 900 bu.
Local oats moved little and the
same was true of barley. Cash rices
were steadier compared with futures
with light receipts the help. No. 5
white oats firmed up to 2@2 1-2c
under May price. Rye followed wheat
with a SC break on Tuesday, but re-
covered within 1c % last Saturdays
close. With small receipts there was
little hedging pressure. Cash prices
were steady, No. 2 at 2@3c under
Nay price,
Flaxseed was relatively stronger
than grains, declining 4s3-4c but NOV
ing up RAPIDLY on the rebound, May
! going to 1901 IA. or SC I'VE Tues
days low. Choice cash fax sold
readily, with No. l spot lie under May
to 4c over.