Evening star., 1924-12-31


is yet too early to prognosticate as to
the ultimate success of this venture,
business the first month was of good
enough volume to impress any OF the
skepticS.
Confidence Pcrvadcs Trade.
From the start of the year a feel
ing of confidence seemed to pervade
the trade in wheat. The tail end of
the 1923 crop, however, proved to be
too big to insure success for the bulls
However. the poor outlook for the
1924 crop tended to inspire en-
thusiasm, and for the first time in the
knowledge of the oldest grain trader
the new crop futures sold at a carry
ing charge over the old crop months.
Early forecasts proved misleading.
The crop was favored with ideal
weather conditions up to the time of
maturity and one of the largest crops
of recent years was harvested. The
farmer, however, did not suffer be-
cause of this yield. He benefited by
the misfortune OF the grower the
world over.
Wheat production in Canada Suf-
fered greatly because OF a draught dur
ing the growing season and excessive
moisture at the time of harvest. This
was not only true of that producer.
but also of all the growers the world
States farmer. However, production
in Canada was cut SO sharply that it
became feature of the grain trade.
Foreign Crops Reduced.
According to the latest available
figures from the government of Can
ada, the wheat crop will not yield
better than 1900, 900 bushels. Last
year Canada raised AS, 600. 900 bush
~
24I, 100000 bushels harvested last year
TO an outlook for 10000 900 bushels
this year. With this reduction in the
crops of two SharpeSt competitors of
the United States farmer, il is little
10 be wondered at that the foreign
buyer is taking hold. in a panicky
way, OF American grown wheat.
For the first four months of the
crop year the United States exported
approximately 125.000,00 bushels of
wheat and -four, or more than twice
the amount exported the same time a
year ago. This represents half the
surplus said to be available from this
country.
High Prices for Farmer.
Prices for wheat were the highest
since 1920 and In view of the heavy
crop production the farmer was in
much better financial shape than
he was a year ago. The latest figures
on crop production show over 100, o00,-
600 bushels more than last year on a
smaller acreage.
Corn prices also entered the record
breaking class and in December the
high points established were the best
in live years. The crop produced was
nearly 60o,000,000 bushels less than a
year ago and this was the biggest
factor in the upturn. However, re-
duced feeding operations are expected
to cut into the domestic consumption
materially. There were 10000 600
bushels of the old crop carried over,
which made up for some OF the deficit
in the new crop.
The outlook is very encouraging
for an enlarged foreign demand for
American corn this year. Argentina,
the biggest competitor in the export
trade, has suffered A material reduc-
ton in the crop promise, as have most
of the producing countries this
year.
Past Ycnr Poor for Corn.
1t was not a corn year the world
over. There was too much cool
weather and a lack of moisture. Lat
est estimates from Argentina indi-
cate that there is only a half crop
in prospect. Rumania, also a COM
petitor in foreign markets, although
In a smaller way, has a surplus of
only 38,000,000 bushels for export this
year compared with SS,000,000 bushels
the year before.
Oats growers were handsomely re-
warded despite the fact that the crop
was one of the largest on record
The. shortage in corn and the high
price prevailing for that feedstuff
led to much substitution of cheaper
grains, and among these oats was the
leader. Feeders could not success
fully continue in operation and pay
the prevailing prices for corn and
sell their stock for the low prices
which prevailed for the latter. A
mixture of ground oats and ground
barley solved their problem in a man
ner and this led to excessive consump-
tion of the substitute grains Prices
were the highest obtained since 1919.
Provision Values Break Records.
Provision values also entered the
record-breaking class. Prices for
cured hog products were so unsatis-
factory and prices for feeding ma
terials were SO high that the producer
of meats was compelled to curtail his
output. The effect OF this reduction
in production has not been felt as
yet because of the panicky marketing
OIL noSS Dy producers who did not care
to take the risk of fattening them
Lard was the first to reflect the
shortage in production. Most of the
hogs received were not of the lard
producing kind and stocks of this
product soon dwindled away.
Meats were in larger supply and
were slower in responding to the
bullish situation, but finally, before
the year had ended. highest prices
since 1920 were reached.
Dawes Plan Benefits Grain.
II would be remiss, in reviewing grain
and provision markets for the year, not
TO call attention to the benefits derived
from the settlement of the reparations
questions by means of the Dawes plan
Europe has not as yet come back eco
nomically, but il Is making progress in
the right direction. Willingness to work
and produce is leading to extension of
credits to Europe by the leading creditor
nation.
The big absorption of American agri-
cultural products can be attributed
largely to this fact Germany is still
in need of fats and meats and all of the
countries of central Europe need United
States foodstuffs as well as feeds, be-
cause of the disaster in crop production
in all of those nations. The United
Kingdom also is expected to be big
consumer of United States products be-
cause of loss I'm production on account
of abnormal weather conditions dur
ing the growing season.
Agricultural prosperity for 1925 seems
a virtual certainty. Prices for grain
and provisions have not as yet reached