Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-22
COMMODITY PRICES
CONTINUE DECLINE
Grain Values Show Depend
enCe on General Business
Conditions.
BY FRANK I. WELLER,
Associated Press Farm Editor.

Grain values are showing lively de-
pendence upon general business condi-
tons. A drop of more than a point In
one week in the price level of all COM
modities saw July wheat tumble to 671S
cents at Chicago, a new low for the
season, while new lows we're made in
May and July corn.
The wholesale commodity price line
has been bearing down. almost per-
pendicularly, since the Summer of 1929.
While it Is not unusual for commodity
values to lose point in one week, 1t
Is regarded as unusual for them to
break that much at such q crucial
period.
1t was said in the grain trade at
Chicago that should the stock market
continue to brace up for a week or
more grain would readily follow. OBJ
servers recall. however, that any per-
manent upturn in the business cycle
usually is preceded by improvement or
at least steadiness in the general COM
modify price line.
Price Stabilized.
Due to Government operations. De-
cember and May wheat has q stabilized
value and is of very little interest to
traders. About the only feature in the
wheat market is that the short interest
In July appears again to be increasing
and any change in the general stu
alton might bring a covering movement
and strengthen prices.
Inc world wheat market continues
weak. Buyers seem to be waiting 10
see what will happen to the new Aus
trallan and Argentine crops. There Is
smaller foreign demand for Canadian
cember wheat hit 51A cents a bushel
az winnipeg, where prices fell to the
change
Movement of new wheat from the
Argentine appears to have begun. and
IL Is expected that port stocks and ex-
ports VIII Increase from now on. The
crop Is of1ctally estimated at about
III 100000 bushels, or roughly 100. 600
600 bushels more than in 1929. Ship
perS are pressing sales of new wheat at
90 cents buShel, C. /. f., European
markets, but are reported to be meeting
dull demand.
An official estimate places the Aus
trallan crop at 215,000,000 bushels.
which would be the largest ever OBJ
tanned in that capacity. New Australian
wheat is on its way to Europe, and is
being quoted at 81 cents, C. i. f., English
markets.
World wheat shipments were esti-
mated at only 10,216,000 bushels last
week, which, If true, promises another
substantial reduction in the stocks of
wheat and flour afoat.
Feeding TO Livestock.
In addition, hope for lighter pressure
is seen in estimates of world produc-
ton OF coarse grains. Oats show a
decrease Of % per cent under 1929,
barley almost per cent, corn 1877 per
cent and rye production is placed at
905, 900 bushels, compared with
933 ,032, 900 in 1929.
Now that corn is cheaper than wheat
in domestic markets, some believe the
rate at which wheat has been fed to
livestock will be reduced. One promi-
nent grain firm at Chicago recalls that
almost six months of the wheat crop
has passed and the visible supply, still
larger than last years, does not show
there has been any important feeding
of wheat. 1t believes there will be as
much wheat in this country on March
l as there was last year.
Some believe corn will continue its
cratic movements, impelled by what
appears to be volume of professional
trade very much larger than this grain
usually experiences and resulting from
many traders having lost interest In
wheat. They do not look for any par
ticular accumulation of stocks this
Winter
Receipts of corn have been moderate
and country offerings light.
Unsettled weather encouraged short
covering and commission house absorb
ton, which checked last weeks down.
turn in prices.