Evening star., 1930-12-08
GRAIN PRICES HELD
AT HIGHER LEVELS
Operations of Federal Farm
Board Agency Are Factor
in Sterilization.
BY FRANK I. WELLER,
Associated Press Farm Editor.

The fact that Argentina and Canada
are not pressing wheat for sale and
offerings Of Russian wheat have de-
creased in recent weeks, is an encourag-
| ing factor in the grain trade.
It has been the popular idea that
Canada would strain every nerve, re-
membering the disastrous holding poH
icy IN 1929, to get rid of as much wheat
as possible while she virtually has the
world market to herself. Argentina,
too, Is a rapid liquidator, and while the
new crop in the South American re-
public is being offered for January and
February shipment, the price is being
nelo at 1874 cents bushel.
Selling Pressure Subsidies.
Stocks of Russian wheat in Conti-
mental European ports are still large,
but pressure of these offerings has sub
sized. Holland was reported to have
purchased moderate quantities of Rus
sian grain during the week.
FIRST shipments of the new Australian
crop made their appearance in British
ports last week and receipts from the
enterpr1Sing commonwealth are said to
be increasing at terminals. Her acreage
largely expanded, Australia is expected
10 nave an exportable surplus of about
I65, ,OOO, 900 bushels this year The first
weeks shipment of Australian wheat is
estlmated at 1885, 900 bushels.
With the new crop starting to move
from the Southern Hemisphere it is a
considerable question what Canada will
90 In the next few weeks. Prices at
winnipeg are low and Canada has lots
OF wheat to sell. 1t is a safe bet that
no effort will be made to hold 1t back.
In the United States operations In
the wheat market by the Grain Sta
Dil1zat1on Corporation have become an
important factor in determining the
trend OF values. The corporation was
credlted with buying 100000 bushels
OF OLD May wheat last week, at the
same time selling December to facili-
tate changing over to hedges against
cash grain. It is generally expected
that the corporation will remain in the
market for some months to come.
Some say that the corporation would
be glad to buy wheat at the so-called
pegged price of 73 cents for December
and n cents for May, but there is not
,, enough selling pressure to carry prices
down to that level.
Easier to Sell.
Action of grain markets, particularly
wheat, indicate that it Is easier to sell
than to buy. However, the market has
shown disposition to respond to buy
ing, which in measure Is credited to
purchases by the Sterilization Corpo-
ration.
There Is a general inclination to pick
up wheat on the soft spots and accept
trading profits at the moment. Big
firms are saying that while they see
! no chance Of decline in wheat prices
they believe that advances will be limit
ed to few cents, furnishing only a
trading market. 1t will require a con-
tinuation of buying power to carry
wheat higher. Trade is still quiet, but
the market is showing firm undertone.
Corn receipts are increasing, and
while traders believe there has been
sufficient advance in price for the pres
ent, they are convinced that all coarse
grains eventually will work higher.
Bullish traders at Chicago have been
buying corn futures, causing sharp up
turns, but the cautious ones are await
ing declines before entering the market.
In coarse grains, as in wheat, traders
seem to prefer a scalping position on
the long side as the soundest policy.
The market Is very sensitive and easily
affected by moderate trade on either
side.