The Washington herald., 1922-09-18
GRAIN AVERAGE
Majority of Trade Be-
lieves Prices Are Out
of Line.

CHICAGO, Sept. l7-When the
wheat pit has a complete turnover
from either the long or the short
side IT means the purchase or sale
of between 100000 and 10000. 900
bushels and fiuctuatlon of s to 10
cents bushel. Any time that the
trade becomes thoroughly con-
vinced that II is best for a change
of front such fluctuations are to
be expected within a few days.
Occasionally when some big opera
tor is covering. or taking on a line
| of wheat or corn, fluctuations of 2
to cents or more are common. At
Present the outside speculative trade
is the lightest in years, and the
| professional trade Is also smaller
than at any time in recent years.
Fluctuations for the last four
weeks have covered a range of
about 3 cents and are practically
over the same ground. The market
has developed liberal support at 81
/ and under for the nearby deIiy-
| cries. while with an advance Of 4
/ to ) cents above that level IL has
/ run into selling orders. There is
/ an impression among trade leaders
! that prices nave reached level
where all depressing factors have
/ been fairly discounted and the mar
ket refuses tc so below certain
| limits. This condition may be
| changed at any time by an alb
/ sence of support from the specula-
| tive or export trade or by an eX-
/ cess of hedging and general selling
/ pressure.
World SuppIy kmpIe,
Latest reports from abroad indi-
I cate that there are sufficient sup
| plies of wheat and other grains for
all requirements and possibly a
more liberal surplus than has ex-
| listed at the end of the season in
! recent years. In other words. the
/ grain trade Of the world is getting
back to pre-war conditions and
/ will have a reserve to provide for
| any material shortage that may ex-
list as was the case prior to the
war. This surplus acted as a bal
ance wheel from year to year. OFF,
setting in a measure the effect Of
material shortage in the seasons
/ production by preventing an ad-
vance in prices ou. of line with
business conditions.
Prices Called Too Low.
| At present grain values are re-
| Rarded as too low compared with
those Of other commodities. There
has been an advance in wages of
! common laborers and of others.
! Prices of a number OF commodities,
especially steel and coal. have ad
vanced. Miners are getting war
| time wages. railroads. in many in
stances. are handling a record VOL
I ume Of traffic. and yet the farmer is
forced to sell his product on a low
| market and pay more than pre-
war prices for what he has to buy.
IL is an economic condition that
may create a slowing down OF bust
ness later in the season, as the
farmers furnish sc per cent of the
lcountry's buying power and they
| cannot continue large purchases OF
commodities with wheat at as to
90 cents and corn at 50 to 80 cents q
| bushel.
/ Fruit growers are in the same fix
as are the grain farmers. There
is a heavy fruit crop. shortage
Of transportation facilities in some
sections and extremely low prices.
Fruit has been shipped from Michi-
gan TO the Chicago market at a low
cost. yet instances are noted where
! transportation charges and commIs-
I SiOns have exceeded the amount
! received for the products. and the
/ producer has been forced to make
up the difference Retailers of fruit
are letting more profit than the
producers or the railroads. An Incl
/ dent is cited hy a Michigan fruit
grower who Sold lot of apples at
$3.50 bushel. He traced the ap-
Ples to the retailer and consumer
and found that the latter paid IS
a bushel for what he had sold at
$3.50.