The Washington herald., 1922-08-21
Less SPECULATIVE
TRADE ON CHICAGO
WHEAT EXCHANGE
Public Has Dropped Out
And Professional Oper-
atiOns Are Limited.

CHICAGO. Aug. 2o-DoIlar wheat
has a different meaning now from
what 1t had before the war. For
years before the war farmers
looked upon wheat at 81 as indi-
eating the height of prosperity, and
when they were able to secure that
price at country loading stations, IL
meant a great deal Of money to
them because the purchasing power
of the dollar was greater 1t is
different now. Wheat at 81 with
the purchasing power at around
STE cents means less to them.
Dollar wheat in Chicago means SO
to 30 cents in the country. and
gives them little return, although
1t pays better than corn to sell
at 35 to 40 cents. Present prices
for grains are nearly as low as
during the depressed period from
last November to January. They
mean no profit to the farmer and
as he furnishes about 40 per cent of
the buying power of the country
there may be a slump in business
unless grain prices are strength
ened.
Wheat prices dropped below 81
this week for the first time since
November. 1921. September wheat
sold down to 99k cents on Tues
day. with a rally of * cents, get
ting above the 81 line again. In
the first week of November last
year December wheat sold at %
cents and May at $1.O3k. the low
est Of last season. and in April
May wheat was up to s1.49k. while
December sold up to $1.54k before
its maturity.
Conditions this season are differ
ent from any other. there being less
speculative trading than at any
time in the last ten years Ex-
port buying has been good of late,
but has fallen off within the last
two weeks. The grain trade is
getting a natural reaction from
seven years of excessive bull spec
ulation and initiation in values. and
there has come a depressed period
with the general public out, leav-
ing the market to the professionals.
Few of the latter are operating
heavily. and there is not enough
general speculative buying to car
NhC dSalusl CdSI
wheat held in various positions, and
prices have sagged irregularly.
For nearly a week values have
declined. with but small and
temporary rallies. The trade has
become extremely bearish. At the
same time an advance of 1 cent OF
So forces the pit shorts and techni-
cally leaves the market weaker
Tho int Oh,
deavored to check declines. believ-
ing prices too low for the best in
terest of producers and for general
business, have found il necessary to
unload. not caring to place their
bank accounts against their opin-
ions in a steadily declining mar
ket.
Supplies for the season do not
promise to be as large as last year.
The present crop is 10.000.OO0
bushels in excess of last year. but
the carry over is smaller. being
around 75.O00,OoO bushels, against
109, 100000 bushels, which more
than offsets the excess in the crop.
At no time in recent years have
millers had so little wheat on hand,
and so few orders for -four for
last week there has been more dis.
position to buy -four. as large con
sumers have practically run out OF
and have taken hold, fear
Ing a general transportation tieup.
We have reached the point in
the movement of winter wheat
abroad where foreigners are look
ing around for spring wheat. and
big buying of winter has slackened
for the time being. Canada has
325, ,000, 900 bushels at a low esti-
mate, while consumption Is around
100. 100000 bushels, leaving 225,-
900. 900 bushels for export. The
United States can easily spare 200.-
000.0 bushels, and possibly more.
giving North America 425.000.000
bushels for export. while Europe's
import requirements are around
625 0OO 600 to $50. 900 900 bushels