Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1925-12-18
THE WHEAT SITUATION


our wheat situation is that with
large world crop the United States
apparently has little more than
enough wheat to meet domestic re-
quirements. The wheat crop of the
Northern Hemisphere, outside of
Russia and China, is estimated to be
IL per cent greater than the 1924
crop. 1t is larger than the pre-war
average of production in the same
countries, but not equal to the rec
ord crop of 1928. Russia is report
ed to have some wheat for export
as before the war, it is possible that
she will export more wheat this year
than she has exported in any other
year since the war; Prospects are
also good for the wheat crop in Ar
gentina. but a short crop in Aus
tralia may offset the prospective in
crease in Argentina.
The worlds supply of rye is also
an important factor in the wheat sit
uation. The rye crop, too, is much
larger than last year. Estimates in
the Northern Hemisphere outside of
Russia amount to 9S1,00O,00O bush
els, as compared with 711,000, 600
bushels last year. Russia is reported
to have a good crop of rye. The eff
feet of good crop of rye in Russia
is to reduce the import demand for
wheat
The influence of this increase in
production of wheat and rye as COM
pared with last year is offset to some
extent, however, by lower stocks at
the beginning of the year and by the
location of the increases in produc-
ton. At the beginning of the year
European stocks of old wheat were
reported to be very low. and the
stocks in exporting countries as well
as the quantity of what afloat were
ming of last year Most of the in
creases in production of both wheat
and rye are in Europe, where in
creased production will cause some
increase in consumption. Latest es-
Inmates indicate that the total Eu-
ropean crop of wheat outside of
Russia and a few important produc-
ers not yet reported is $4,000, 200
bushels greater than last year and
that the total European rye crop
outside of Russia and a few small
producers is 2S1,0O0,O00 bushels
greater than last year. Records of
past years indicate very clearly that
the European import requirements
will not be reduced nearly so much
as this increase in production. The
fact remains, however, that the
worlds supplies for the year appear
to be somewhat larger than last year
in relation to the worlds demands
The situation in the United States
is markedly different from what it
was last year. The total production
of wheat is but slightly greater than
the quantity utilized in the United
States last year. Out of an estimat-
ed production of S73,000,000 bushels
last year, the balance of exports
amounted to 252,00O,OO0 bushels,
leaving 621, 100000 bushels in the
United States. In addition to this
balance about 100000 bushels
were drawn from stocks indicating
a total utilization in this country of
approximately 665, 100000 bushels.
Should the same quantity be utilized
in the country this year, there would
be only about 100000 bushels of
wheat for export without further re-
duction of stocks
Looking ahead, according to the
intentions-to-plant' report, high
prices have encouraged farmers to
consider increasing the wheat acre
age of the United States In plan
ming wheat production the situation
both in the United States and in the
whole world should be considered
Even with the same acreage as last
year, good average yield would
plave the United States on an export
basis for most if not all classes of
wheat. The trend of production in
many countries that compete with
the United States is upward Pro-
duction in European countries af-
fected by the war is rapidly ap-
preaching pre-war status Russia,
large exporter before the war, is re-
covering. The what-producing areas
of Argentina, Australia and Canada
are now SO per cent above pre-war
average, and these countries have
not reached their limit Under these
conditions, only poor crops in i'm
portant foreign wheat producing
countries can result in a situation
comparable to that of last year, when
the farmers of the United States had
good crop which they sold at high
prices.
BLIZZARD IN WEST