The Washington herald., 1922-11-06
GRAIN TO RISE
Trade Believes That De.
cember Deliveries Will
Go Higher.

CHICAGO. Nov. 5.-The grain sit
uation has become more mixed. The
trade in the West Is inclined to the
constructive side OF the market and
there are many large operators who
believe in materially higher prices
later in the season. especially for
corn. Several of the largest cash
handlers and traders are disposed
to take a decidedly bullish view of
the December deliveries Of all grain.
believing that prices are to wor
irregularly higher on the basis of
light supplies and a large short in
tea est. both speculative and hedg-
ing.
One of the leading grain men
discussing the situation says he be-
iieves that the December deliveries
are in about the same position as
were September oats, which ad-
vanced nearly IL cents in that
month and went out around the
highest prices Of the season.
Transportation . Big Factor.
Transportation conditions are to
be an important factor and there is
a large holding of corn which will
take an immense movement from
the country to satisfy. Marketing
of corn for several months has been
above the average and 1t is expect
ed to continue at high rate. New
corn Is moving to market and grad
Ing well. and with favorable wealth
er is expected to move as freely as
the supply will permit. Constant
complaints are coming from the
corn belt States that cars are scarce
and country elevators are afraid to
buy grain because they are unser-
tain as to getting cars. With f.
vorable weather conditions there
are indications that the movement
OF grain will continue large. In
the face of liberal marketings ac-
cumulations at primary markets
have been small.
This is particularly true of wheat.
More of this grain has reached Chi
cago since July l than last year,
yet stocks are smaller and the trade
Is going into the winter with light
supplies. unless there are heavy
shipments here from Duluth. Two
cargoes of Canadian wheat have
reached Chicago within the last
two weeks for merchandising and
the grain is being sold at fancy
premiums.
Situation I'm the East.
The grain situation in the East
is complicated by inadequate trans
portation conditions. and exporters
who have sales made for November
and December shipment are in a
bad fix, being unable to get the
grain fast enough to meet their
contracts. and are forced to pay
iancy premiums. A Chicago cash
handler who spent several days in
the East within the week says the
exporters there are devoting more
time to closing old contracts than
to making new ones and are dis
couraged over the prospects of get
ting grain from the West
Canadian grain traders are adyo-
eating the buying of Winnipeg
wheat futures and selling Chicago
May. Millions of bushels have al
ready been spread this way and in
the face OF continued heavy mar
keting of Canadian wheat prices are
holding strong. owing to export
buying. 1t is estimated that about
115.OO0.O0O bushels of Canadian
wheat have left the farms so far
this season, only part OF which has
been sold by the producer. This
record movement will place the
farmers in position to secure
premiums for their cash grain later
with continuance of export buy
ing.
There is an impression among
close observers that either the
American farmers in the Middle
west have larger supplies of wheat
on hand or raised less than last
year. owing to the slow marketing
Of late. The milling demand for
wheat here has improved within the
last few weeks and is the best of
the season.