Evening star., 1926-06-02
VESTS STATE HANGS
0N.CROP WEATHER
Fortunes of Northwest Down
While Those of South
west Ascend.
BY J. c. ROYLE.
Special Dispatch to The Star.

NEW YORK, June 2.--The weather
Ing power in the Middle and North
west today. Consequently on the
weather depends also the volume of
buying from that territory. which will
affect every industry Of consequence
In the United States to a greater or
less degree.
Pessimism prevails In the wheat
sections of the Northwest. which pro
duce the greater portion Of the hard
Spring wheat used in conjunction
with the Winter wheat Of the South
west for production Of high auaity
| -four, In Spring wheat territory
drouth has been general except in
western North Dakota and Montana.
In many places the ground has been
so dry that high winds have blown
the seed from the ground and the
dry dirt has drifted like snow.
Crop estimates Of the leading
private investigators indicate
Winter wheat crop of about 571 1,000.-
600 bushels. This compares with the
Winter wheat. The Spring wheat
crop. according to the consensus of
opinion. will range around 22l.00h-
600 bushels. as compared with 211.-
0so. 900 last year. 1t is necessary only
tn take the difference and multiply
1t by the price Of hard wheat TO dis
cover how much buying power has
been decreased In certain sections.
Only Fair Crop.
Only A fair crop can be expected in
the Spring wheat states even II
weather conditions are ideal from now
on. The Winter wheat crop of the
Southwest already Ia assured. When
large quantities Of Winter wheat are
harvested-and harvest in the South
west is now in progress-mflls start
buying early and demand for Spring
wheat Ia not so good.
The buying power Of the Northwest
can be easily estimated by study Of
prices Of grains this Spring and last.
July wheat shows a drop Of around
Is cents a hushel. July oats Of over
& cents. July fax of 4s cents and July
harley of 81 cents or more at the
Northwestern markets. Northwestern
hnanciers say that this differential
must come out of an already narrow
margin Of profit on production Of
grains on the farms.
On the other hand. the Winter
wheat harvests OF the Southwest will
be of a character which would tend to
ing situation in the Northwest. Mer-
chants and manufacturers are realiz-
ing this and are laying out their sales
campaigns along territorial lines,
where they will yield best results.
Outlook Not DiscourasMg.
The reports from the grain grow
ink countries of Europe indicate that
acreage planted Is almost identical
with 1925. while there is no indica-
ton of a shortage. On the other
hand. it is doubtful II Europe will
he in a position to purchase more
American grain this year than last.
The Canadian output still must he
taken in.o consideration. and IT Is
significant that Montreal shipping
men and merchants and exporters
assert boldly that if the port were
not tied M by ice during a part of
the YEAR they would overshadow the
American shipping ports with the
volume Of tonnage handled.
The outlook is not wholly dis
couragins. for costs of production
have been materially reduced by re-
placement Of old machinery. intro
duction Of new equipment and
consequent cutting of production
costs. Sales Of farm equipment have
Tun 20 per cent heavier IMAM III tne
corresponding period Of 1928. Total
business up to the end of this month
is expected to be the largest known
since 1920.
Foreign grain producers have not
been entirely caught mapping by this
trend They have bought around 80
per cent more American farm ma
chinery so far this year than In the
same part of 1925 The gain in
shipments to Russia. which has
huge wheat acreage. has been fea
ture OF this export trade. and the
tendency seems likely to exercise an
influence on the domestic grain situa-
tion next year il not this.