Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-04
TONE IS BEAR|SH
IN WHEAT MARKET
Requirements. However,
Factor to Be Reckoned
With.
By GEORGE c. sCHNACkEL.


CHICAGO, July "a three-dav
holiday at the turn of the new crop
season is giving the grain trade an
opportunity to take stock of the
situation which is TO confront II
during the coming months.
In the first place. based upon pres.
ent prospects. the United States has
a wheat yield 100,00 900 bushels in
excess of last year. The three local
experts estimate the prospective
yield at from 770000.0OO to 100000
600 bushels. There is a feeling that
the estimates are too small for Win
ter wheat and somewhat large for
Spring wheat. IS
At first glance this situation would
appear bearish. but it has to be con
sidered that the carry-over of old
wheat will probably be nearly 40
000,0 600 bushels smaller than last
year. In the visible supply there are
not more than 100000 bushels,
while farm stocks are set at from
100000 to 20.000,000 bushels and
country mills and elevators do not
have much over 20,000,000 bushels.
Canadian Crop Large.
With the carry.over cut down this
leaves net supply of 60.000.OO0
bushels larger than in 1925-1926. The
Canadian crop still has to go through
it's critical period, but all information
is that this crop will equal, if not
surpass. the bumper yield of a year
ago. Nat c. Murray estimates the
yield at 393,000,000 bushels for the
west of Canada, compared with a 1925
crop of 3S2 100000 bushels.
HI F,,- tx
to the situation. However, in figuring
on the future, requirements also must
be considered. If the supply is larger,
import requirements of Europe also
are larger. Europe last year raised
one of her best crops. This year Ger
many, France and Italy all complain
of reduced yields. due largely to ex-
cessive rains. The expectation is
that the European crop will be about
100000 900 bushels under last year.
This will cause a demand for Amer
lean wheat. which should so far To
take care of the excess both in Canada
and the United States.
a factor in the import situation.
though, is provided by the disturbed
finances abroad. The French franc
and italian Ira are in bad shape and
Germany has little excess money. The
result is that these three countries
! will do all in their power to limit their
imports. Import duties on grain limi-
tation of imports and forced admix-
ture of other grains with wheat all
are in force at present and may he
! made more stringent.
Then American wheat may have
to meet more competition from Rus
STA, which is likely to have a crop
| equal to if not larger than that of
last year, according to most .uthen-
tic adviceS. With all of these things.
however. the export outlook is bet
ter than a year ago.
Corn Situation Hopeless.
In corn the situation looks rather
| hopeless from the point of view of
| the producer. The Department of
Agriculture pig survey shows half
per cent fewer pigs in the corn belt
| this Spring than last. and that is
one reason for the reduced domestic
/ consumption of the last crop. There
| is big supply of old corn and now
on top Of that farmers have planted
another big acreage.
| Private estimates are for An in
crease of from one to two per cent
acreage over last year, with the pro-
spective yield slightly under the q
| 900. 100000 crop produced in 1925.
Normal Summer weather may result
| in a crop even larger than the last
yield. The new crop, however. should
meet a bigger domestic consumption
than the last. High prices for hogs.
which are likely to continue well into
the Winter of 1927, have encouraged
| farmers to go into hog raising. An
| increase of 26 per cent in the num-
Der of sows bred or to be bred for
next Falls narrowing is reported by
the Department of Agriculture. A.
Increase in consumption at the
moment seems about the only thing
that can bring corn prices out Of their
extremely low position.