The Washington herald., 1922-04-10
WHEAT MARKET, :
LACKING LEADER,
GROWS NERVOUS
Sudden Price Fluctuation
Attributed by Trade
To Absence.

CHICAGO, April s.-For more
than two months many in the
wheat trade have operated with
the belief that there is to be q
great scarcity of wheat before an
other harvest. 1t Is admitted by
all authorities in this country and
in Europe that there Is very
close adjustment OF supplies to re-
quirements, and that the carry
over at the end OF the season will
be light. This has led to an i'm
preston that prices should sell
very high by the end of May and
in June. They point to the action
of the market last year, when May
wheat, after selling at S1.1914 in
April, went out at the end Of May
at s1.S7.
Conditions this year, however
are different. Supplies In sight are
about double last years. the Wis.,
ible alone being 35.SO7. 900 bushels
against 1s,463,0OO bushels last
year. On May l last year the Wis
ible was 13.4IS,OO0 bushels. OF
which Chicago had only 6Os. 200
bushels. the bulk of the supply
az NhC HNidHAiC anu
Gulf ports. and at Minneapolis and
Duluth. Then there was a strong
interest under the market. which
found 1t easy to control. This
same interest is now apparently
bearish and is bringing wheat
from the Missouri River to deliver
on May sales, the future being sold
as fast as the grain is bought in
the West.
Waiting for q Leader.
The trade is looking for some
one to put the market up during
the month of May. and especially
in the last few days of that month
and is willing to follow such a
leader. At present there is said tu
be a fatr-sized holding of MAY
wheat by Eastern exporters. al
Enough the line is said to have
been reduced the past few days
Local interests are reported tn
have a fair line. but do not relish
the idea OF having a lot of yellow,
hard winter wheat delivered them
in May, as that grade Is not easily
disposed of to millers or exporters
at present. and should prices get
out OF line with other markets
they might have to take a loss in
disposing of II.
Narrowing Margins.
Within a few days there has de-
veloped a movement here to sell
May and buy July wheat at II to
Is cents difference. the May being
at premium. This has created
the belief that May will sell at A
discount under July. OF late the
milling and export demand has
been disappointing and has led to
an increased bearishness on the
part OF many local operators
There are days when they get too
much on this side, and sharr
bulses are the result Of the COW
ering movements. hut Of late these
have not lasted long. Last week
saw an advance Of s cents in Nav
wheat on covering by a big New
York trader, but after he FINISHED
buying prices declined cents In
two days.
This shows the character of the
wheat trade and the markets con-
dltlon. For the present the crou
reports are not bad enough to in
duce the public to come in on tho
buying side. and the Southwestern
interests who are sending the bad
reports are not backing them with
enough buying orders to be a fac
TOT The trade in general is look
ing Tor a nervous market, and
until there is a bold leader or
either side sharp changes in prices
are to he expected at any time
without the markets having any
particular trend.