The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-02-20
RISE In WHEAT
PRICES DUE TO
WORLD CAUSES
Crop Estimates of Most
Countries Have Been
Recently Reduced.
MARGIN VERY CLOSE
World Surplus of 100000
Bushels as Carry-Over Is
Considered Narrow.
MARGIN VERY CLOSE

CHICAGO. Feb. ls.-The adyace
in wheat prices is worldwide
phenomenon. 1t started recently in
Argentina and Liverpool, where the
markets had been largely overso!i
by efforts of foreigners to depress
values as low as possible to enable
them to secure supplies. They
bought the greater part Of the
Australian and Argentine surplus,
and the late reduction in selling
pressure, combined with the absorp-
ton of offerings at low prices, anu
covering by short sellers, has ma
terially helped to advance prices in
all markets about 80 cents or more
above the recent low point. in Chi
cago May wheat has advanced 81
tents from the low point in Novem-
Der, which was S1.03h, while at
the same time July. that sold at
OK cents, has been up to sl.23.
May wheat in Chicago and Buenos
Aires has sold at nearly the same
prices the last few days
The worlds situation has changed
materially within the last few
weeks. The Argentine crop. which
was recently estimated at e07, ooo,-
900 bushels has been cut down TO
i5O.000,o00 bushels. as reported by
the Department of Agriculture at
Washington. On this basis there
is an exportable surplus of 10000
600 bushels. which with a carry
over OF 10000, 900 bushels makes
the surplus l00.o00,00o bushels
Austraila's exportable surplus,
which was estimated at 12e, 1000, 600
bushels earlier in the season, has
been reduced to S0,ooo.oo busheIs.
Canada's crop figures have been re-
duced 100000 bushels by Official
returns, and they are around 30
100000 bushels more than the
Northern Grain Dealers estimate.
European authorities meanwhile
have increased their estimates Of
requirements around 10000. 900
bushels from those estimated a few
months ago. and the surplus Of the
exporting countries is variously es-
tmated from equalling importing
requirements up to 10000. 900 or So
100000 bushels in excess. A world
surplus of 10000. 900 bushels as
carry-over from the present to the
new crop season leaves too small a
margin for a healthy situation, and
the advance in prices of late Is due
to the trades realizing the neces-
sity Of readjusting prices to SUP.
plies. At no time under normal
conditions has there been such a
close margin between supplies and
requirements as at present Hrw
high prices will go is problem.
Crop Conditions Poor.
Crop prospects in the Southwest
are unfavorable. due to drought
and poor termination. The crops
in Kansas and Oklahoma. however,
are generally most uncertain
quantity at this season Of the year.
Should the estimate of a 5000, 900
acre loss made by Secretary Smiley
of the Kansas Grain Dealers As
ISOLATION be confirmed. Kansas is
due for a short crop. As a large
part of the exportable surplus Of
winter wheat comes from thai
State. 1t would necessitate raising
a big crop of spring wheat
Crops in Europe have a fair to
good prospect Russia is being fed
by other countries and will prrk-
ably need all the wheat it can raise
the coming season to feed It's own
people. The other countries aIc
about in the same hx. and So.nc of
them have prospects of snort
crop.