Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-02


cheap corn to live
stock. 1872 ~
In fact, the De- !"
partment of Agri- | sS&&
culture, in sum- -
mNsizing the posi-
tion of agriculture
during the year,
says that there hSsaSS =
has been marked G. c. SCHNACKEL
but not uniform -
Improvement as compared with 1870
DESPITE low grain prices, the Secre-
tary of Agriculture regards the posi-
tion of the farmer as better than IN
any year since 1920. He estimates
the net income of the industry as
unit at S2,757 100000, or 4 per cent
more than the crop year lsZ4-zo: oo,
"Since the depression period of 1921
every agricultural section of the coun-
try and every important branch OF
agriculture has made progress, says
Secretary Jardine. Recovery mas not
been uninterrupted. nor, as L nave
Indicated, have all groups of producers
shared in it equally. Nevertheless, the
gain has been substantial.
Speculative Grain Prices Down.
So far as the speculative grain mar
kets are concerned, the trend decld-
edly has been down. In wheat prices
are off about 40 cents a bushel COM
pared with year ago. Corn has mace
new low records for the past three
years, but net changes as compared
with a year ago were not so great,
since May corn is only about cents
a bushel lower than in January. oats
showed little fluctuation during the
entire year, but prices were slightly
above the cheap values of 1925. Pro-
visions trade was quiet, with prices
lower.
The speculative market has been
slower than for many years. There
has been so much condemnation OF
speculation in grain that outside OF
the professional traders very little In
terest was taken in the grain deal
ings.
A year ago prices for wheat were
relatively high. During December,
1925, much bullish feeling had been
aroused by figures Of Statisticians and
others tending to show that there was
not enough wheat in the world to
satisfy all requirements before the
new crop was raised.
World Surplus of Wheat.
However, after the turn of the year
these figures failed of realization. The
world not only had enough wheat but
had a carry-over Of close to 100, 000,-
900 bushels. When the trade realized
that its theory of a shortage was
erroneous then there occurred
gradual dumping of holdings. The
effect of this liquidation was most
severe during the first months. To
emphasize the situation at that time
the Government on March ! reported
IS, 000,00 bushels on farms and U.s.
600, 900 bushels in mills and country
elevators
The new-crop year was distinctly
the reverse of the old-crop season.
The United States in 1926 raised a
big crop of Winter wheat and a
slightly below average crop Of Spring
wheat. making total yield of $780,
0o0.0 bushels of all wheat, compared
with CSC, 600, 900 bushels grown in 1925
and S02, 900 900 bushels the f1ve.year
average. This was one of the reasons
for the price decline, which is so
marked now compared with a year
ago.
Right at present there are two
views OF the future situation. The
bulls are arguing that the world again
is short Of wheat. They are predic-
theory is this: Europe's crop was
practically failure and we already
have exported our surplus. There.
ting that May wheat will sell at 50
a bushel before April. In short. their
fore we now are on a domestic basis
and wheat IS worth 81 a bushel to
the domestic consumer.
This opinion is scoffed at by bear
traders. They point to the situation
in the last two or three years in
which the same cry Of worlds
in the last two or three years, in
higher prices. Each time the predic-
tions failed to come true. q.
A Neutral View.
4 neutral view of the situation is
afforded by Broomhall. who is well
regarded as statistician on the in
ternational grain situation. He figures
that from August /, 1926 to July 81 ,
1927, the world import requirements
will be 704 900, 900 bushels, while sur
plus countries have SIG, 000, 900 bushels
to sell for export. North America
alone has a surplus. or did have at
the start of the season, of $1,000 900
bushels.
The United States has the best
quality wheat of any country, and for
this reason our hard Winter wheat is
favored by European buyers when
ever the price difference is not too
great. This is demonstrated by the
fact that the United States exported
109 900 900 bushels during the first
four months OF the crop season, COM
pared with 1s6 1000 900 bushels during
the entire crop season of 1886. The
world situation is somewhat bearish
so far as other surplus producing
countries are concerned. Canada
raised a big crop of nearly 400, 000,-
900 bushels. Argentina last year
failed TO dump her wheat as expected,
and as a result is carrying over this
season grain variously estimated at
from 40,000,000 to $4,000 900 bushels
This wheat, though, is mostly of poor
quality. The new Argentina wheat
crop is of good quality generally in
the north, but there are provinces in
the center where frost and drought
nave shriveled the berry.
z is estimated that Argentina and
Australia will have surplus 60 900,
900 in excess of last year. Argentina
is expected to have $50, 000, 900 bushels
for export, and Australia nearly 100,
000. 900 bushels.
Russia is an unknown quantity, but
II is evident that exports from that
country will equal, IL not surpass, the
% 900 900 bushels exported to Euro
pean consumers last season. France
and Italy, because of their financial
condition, are making efforts to holC
down imports by mixing wheat with
cheaper 81 aims.
Corn Farmers Complain.
Corn farmers, who have been get
ting around 20 cents bushel fol
their product, are continuing to com
plain over the poor price. This com
plant is warranted to some extent