The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-06-27
wheat REDUCTION
May BOOST PRICES
AFTER FIRST DROP
Heavy Marketings at Outset
Expected to Depress Quo.
tations Briefly
modify LEVEL LOWER
Outlook Says Large Output OF
Automobiles Has Been Main
Business Stimulant
COMMODITY LEVEL LOWER
BY u. NJ. FULLER
assistant Farm Economist AEri-
Am1fmra1 Tsn11e~el

ADy " W y
assistant Farm Economist Asri-
cultural College)
From the present high rate of in
dustrial activity there is developing a
volume OF consumer buying power
which will sustain the de-
mand for farm products during the
summer months. However. some re-
duction in consumer demand may de-
velop later in the season due to the
reduction in output of iron, steel and
automobile industries, especially in
the face OF high interest rates.
The large volume of automobile
production appears to be the chief
stimulating factor in the record out
put Of iron and steel as we'll as the
increased volume of freight traffic
handled by the railroads. Factory en-
ployment and payrolls. which in April
increased contrary to the usual sea-
sonal trend, have apparently been
maintained at present levels.
The general level Of commodity
prices. which has tended downward
since last September. reached another
low point by the end of May. On June
I the index stoC | at 1899. The gen.
eral level of prices received by farm
ers May Is, at 1856 per cent of pre-war
prices. was ? points lower than April
Is and II points lower than May Is a
year ago. Most of the decline was due
to lower grain and cotton p .ccs. al
though hog. lamb, wool and butter
prices were also lower. In North Da-
kota the general level OF farm prices
has deere -sed.
Wheat
With a reduction of 5 per cent in
the worlds wheat crop. as is now in
dicated. and other factors remaining
the same. the increase in world de-
mand would result in some increase in
the average world market price for
the season over the average for the
past season. The world carry-over on
July l will probably amount to from
l25 to $50 million bushels more than
t..sat Of last year, and most OF this will
be in the United States.
Wheat areas, estimated in % coun-
tries which harvested Sc per cent of
last years acreage. report to date an
increase of 5000. 900 acres, OF 3.8 per
cent more than last year. In some of
the European countries extensive win
er-killing has been reported, and
drouth is retarding seeding in Argen-
tina. The early forecast Of production
in the United States indicates a crop
somewhat larger than that Of last
year. According to the Canadian Of
ficial report for June, the condition
Of spring wheat in Canada is equal
to the l0-year average.
Heavy marketings of new wheat In
the next two months. together with
favorable crop reports, may cause
short periods of depression. but should
conditions develop In Canada. Argen-
tina and Europe as now seems pos
sible, the general level Of cash prices
is likely to be lifted upward to ON
extent a the marketing season pro-
crosses.
Flax
Present indications are that the
Argentine flax crop ia large enough
to offset the reduction in the North
American crop and that the produc-
ton in five chief producing countries
In 1928 was probably equal to or
slightly above the production in 1927.
Preliminary figures on the interna-
tional trade in flaxseed during the
calendar year 1923 indicate shipments
OF q larger volume than that Of 1927.