Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-01


selection of farm board, and later its
acts, had decided effect upon the
wheat market, which primarily was the
commodity to be aided.
Early in the year the call for sper
cial session to enact farm legislation
brought good deal of buying into the
wheat market and boosted prices ma
terially. AS soon as the bill was passed.
creating farm board with the dis
posal of a revolving fund totaling $780,
| 900 at its command, conjectureS
started concerning the boards policy.
This led to further bullish demonstra-
tions, which ran wheat prices up
sharply.
When, however, the board was Sc
lected and announced its policy of aid
| ing cooperative marketing combines,
with loans to be made on the basis of
$l.18 for No. l hard Winter wheat at
Chicago, spectators unloaded and sent
prices down.
Bullish Crop Conditions.
Bullish world crop conditions also
had been decided factor in the price
situation, but supplies of this cereal in
all surplus-producing countries were so
large that the usual crop scare news
largely proved ineffective as a price
, stimulus Toward the end of the year
grains had to meet an unusual test as
a result of the complete collapse of the
1our-year bull market in stocks. This
caused heavy forced selling in the COM
modify markets and sent wheat crash
ing Tar below the loan basis established
/ by the Federal Farm Board Later the
markets were able to get back to normal
ana prices were on fairly stable basis
around 10 to IL cents a bushel above
| the price paid at the same time a year
! ago.
During the year prices of the May de-
ilVery IN wheat ranged from SO cents to
p, Sl.64 buShel, compared with Sl.17la
| to $1.7112 in 1923. No. l Northern
/ wheat covered a range on the cash
market of $1.23 to $I4l, against 81 .O9I5
70 $l.75 in 1928. No. 2 red ranged
from $1.19. to SLAB, compared with
$3.50 to S2.10 last year, while No. 2
hard ranged from SO cents to Sl.421h.
compared with $1.06h to $l.76 a year
ago. ''-
| Board Hopes to Level Curve.
The Federal Farm Board in carrying
out Its policies hopes to be able to Level
, out the curve of these wide price fiuc-
tuatlons by comprehensive system of
cooperative marketing. Whether the
board can succeed in this propra m
PROBABLY will be shown in a measure
curing this next year. 1t was loo early
TO judge its effectiveness during the
present year as its acts had almost onlv
a psychological effect
Inc lower average prices for cash
WHEAT ana futures during much of the
present year were due largely to the
tremendous surplus produced in 1923
not only In the United States, but in
an OF the exporting countries. Arpen-
Una particularly supplied competition
OUT OF all proportion to it's previous ac-
tiVlty. Her crop, in effect, dominated
Ine world markets and pressed prices
lower. Argentine exports are estimated
at over 2o0,O0O, 900 bushels, compared
WIN normal clearance of from lao. =
100000 to 10000, 900 bushels. The Ca
madam crop was tremendous as wei!
put In this case the Canadian market
ing pool endeavored to hold back its
STOCKS Tor more favorable prices. What
the 1ull effect of this holding policy is
to be remains to be seen.
DrOuth Reduced Crops.
This year most of the producing
countries suffered from drouth. DRY
weather cut our Spring wheat CROP
from 324, 100000 in 1928 to 224 600 OOo
this year. The Canadian crop, accord
ing TO latest estimates, was 293, 500 600
bushels, against 566, 100000 bushels last
year-a severe drop in yield caused by
prolonged drouth in the Western prov
lnces OF that country. Argentina and
Australia have had the same trouble
AS a result the expectation is for a
world wheat crop, excluding Russia and
Siam, of 3,096, 222 900 bushels, COM
pared with 3,474824, 900 in 1928.
Encouraged by this big reduction in
yield. not only at home, but IN other
surplus countries as we'll, the Canadian
pool Is pursuing holding policy. They
are firmly convinced that European i'm
porters will have to depend upon North
America for supplies during the coming
season. Recent estimates say that the
pool has on its hands about 228 900 .O0O
bushels. 1t feels safe in hanging on in
the belief that operations of the United
States Farm Board will prevent any
dumping of our wheat in competition.
Despite the small production in sur
plus countries this year, there has been
no great shortage of grain. owing to the
record-breaking carry-over from the old
crop. Stocks of wheat in the United
States on July were 245, 00O. 600 BUSH
els, against 128,000,00 the previous
year. This tended to offset the reduc-