The Washington herald., 1922-08-28
WHEAT
PRICES HANDICAP
CROP PRODUCERS
Equals Price of 80 to 80
Cents on Farm-Dealers
Expect Rebound.

are hanging around the u level.
On one day the past week Septem-
ber wheat sold at s7%c, with an ad-
vance OF over &c from that level
following 1t on Tuesday. while De-
cember touched 81. the lowest since
| 1915. While the trade in general
looks for prices to remain low for
long time to come. there Is a be-
lief among a number Of leaders that
eventually prices should be a little
better.
Accommodations of wheat futures
on all sharp breaks Is noticeable,
and there are intimations among
well-informed operators that infiu-
ences are at work which eventually
may put 10 or Is cents per bushel
on the price. 1t may take q consid-
cradle time to work out the specu-
lative problem which Is being han
died for the benefit of the farmers
and business interests of the coun-
try. 1t will mean a great deal of
work on the part of the country's
leading financiers and business men.
as an absorption of grain during the
heavy marketing period Is not an
easy problem to work out with sue
cess.
Higher Prices Needed.
Last January It developed that
campaign headed by leading inter-
ests had brought about q change In
sentiment and advanced prices for
May delivery from $i.03k in first
week in November to $1.4sH early
in April. did much for the busi-
ness interests of the country and
helped nearly all farmers, as other
grains also advanced In sympathy.
An advance during September. Oc-
tobre and November would be of
great assistance to farmers of ali
classes, as they are marketing their
wheat in liberal volume and every
cent advanced at present helps them
directly. Farmers in the Southwest
have marketed their winter wheat
crop in about an average volume SO
far. They are selling freely in Kan
sas and are disposed to hold in parts
of Oklahoma, yet at the same time
reports from the railroads show thai
more grain Is being offered than can
be moved.
Elevators In many sections are
filled with grain and cars and mo-
tive power are not available to move
the grain to terminal markets as
fast as country handlers would de-
sire, although there Is an average
quantity being handled. The win
ter wheat movement in the South
hog
off in the past two weeks, owing to
car scarcity. as all surplus cars
have been put into use. In the North
west marketing of spring wheat has
increased and is expected to be large
until weather conditions prohibit
farmers moving their crops to coun-
try loading stations. The move
ment is largely a question of cars
throughout the entire grain section
Big Crops in Northwest.
There is less wheat in the South
west than last year and more in the
four Northwestern States than at
any time since 1913. In the Cana
dian Northwest conditions are sim
liar to those in Minnesota, the Da-
kotas and Montana as regards crops,
cars and marketing. and the rail-
roads are confronted with the lare-
est business in recent years. In ad-
dition to the big wheat crop, there
Is a record yield of rye, which Is
being marketed in unusual volume.
This gives the railroads more than
they can handle. and the movement
Is expected to keep up. In fact
the grain movement in all sections
is only to be limited by the ability
| of the railroads to furnish cars and
! OF the elevators to handle the grain.
So far there have been practically
Two months of winter wheat
movement with moderate accumula-
tions. and one of the largest ex-
porters says that he expects to see
wheat moving out nearly as fast as
1t comes in for the next few months.
Foreigners have moderate guam
titles of wheat bought for Septem-
ber shipment, but beyond that sales
| have not been heavy.
With prices around the 81 level
In Chicago. 1t means 80 to 9Oc for
farmers. TINS does not give them
very much money, and an advance
or loc bushel would mean a great
change In their economic position.
Ihey VIII get very little for their
oats this year. There are about
average stocks of corn back in the
country. which is bringing 40 to soc
at loading stations in the nterior
Promise for the new crop Ia for
around 3,oo0.0o0.0o0 bushels, TAX
ing it all in all, the farmers have
fair amount of money with which
to lfquidate their Indebtedness ana
carry them over into the next sea
son. but none will have much ~ anv
surplus '