Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-04
CONTROL Of WHEAT
PRICES SUGGESTED
World Pool Might Stop De-
cIines in Value of
Grain Crops.
BY FRANK I. WELLER.
Written fer the Associated Press

An international alliance of wheat
growing countries to give each one an
unc ontested period of world trade may
not seem so improbable if prices repeat
last weeks denomination of their abil-
ity to do about everything market ex-
perts insist they can not.
Even before the full return of Eu-
ropean inquiry for American grain,
economists. private and public officials
declared wheat prices were as low as
they could go. Then followed an aTnaZ-
ing export and domestic demand, con-
sidering what 1t had been. Drought
threatened both American Spring wheat
and the Canadian crop. Receipts OF
hard Winter wheat fell off. There were
widespread reports of wheat being fed TO
live stock Corn, facing reduction IN
yield now frequently estimated at al
most 10000, 900 bushels, eclipsed wheat
prices in many regions.
Market Continues to Sag.
Ordinarily such elimination OF bull
ish factors would have been reflected In
better wheat prices. However. tne iasC
weekly span of the market saw prices
dragging new low levels for the year and
the lowest since 1914.
Apparently clear out of control just as
the new harvest is getting under way In
the Red River Valley and the CANADIAN
prairies, it is considered entirely pos
sible that wheat quotations may go even
lower than they now are.
One of the Department OF Agricui-
lures ablest grain men says the market
will not be out of danger OF SINKING 70
new low levels until the peak period OF
hedging Spring wheat has passed.
Hedging has the same effect as piling
lot of wheat on the market, regardless
of whether actual grain ever Is III si9nS.
g ri YnaI1t 0f AQrlCuls
lures ablest grain men says the mar
ket will not be out Of danger OF SINKING
| to new low levels until the peak perloo
of hedging Spring wheat is passed.
Hedging has the same effect as ping
| a lot of wheat on the market, regaroleSs
of whether actual grain ever IS In slgnt.
The result is expected to be the same
as the normal reaction when additional
stocks are piled on top Oh "eaAeheo
price structure.
Since the market cracked in the pres
ence of a brief opportunity to readJust
| itself. it hardly can be expected 70 ex-
| hibit strength with new wheat coming
! from North Dakota, South Dakota ana
| Minnesota. Too, Canadian spring
expected to yield rs to IS million BUSH
| els more than last years short harvest.
In addition harvesting is we'll UNDER
way in many important European pro-
! ducing areas. It has slowed up Amer
| lean exports, as proved by the fact that
while receipts of hard Winter wheat
| have been reduced, American market
stocks continue to increase.
Oversupply Of Stocks.
AS many see it, the whole trouble
with prices may be traced to an over
| supply in world stocks and an effort OF
| ali countries to sell at the same time.
| The new French wheat is light, thresh-
| ing returns in Italy are poor and yields
| in the upper Danubian countries are
! disappointing-but all that hasn't
| strengthened prices.
The situation may work out its own
| answer by causing the abandonment
of wheat production among farmers
! who cannot make profit at present
| prices There is some indication OF such
| a trend both in this country and abroad.
Before that occurs. however, wheat
growing countries may apply the prin-
| ciple of American cooperative mar
| keting to the world trade-each taking
| its turn to feed the market.
To some extent that Is done now, be-
| cause of natural harvesting periods. To
work properly, the United States should
have world trade to itself during June,
July and August. Canada should have
| September, October and November and
Argentina and Australia December,
January and February. March, April
and May would be open season." dur
| ing which each country marketed its
eXportable surplus.
{, In recent years principal exporting
countries have been cutting in on each
others natural market period by hold
ing wheat for better prices, frequently
selling it many months out of line with
| their own harvest. Canada's effort to
hold her 1929 crop was a notable ex-
ample.
There is much to be said both for
and against an international wheat
marketing agreement and, like most
present efforts to control supply and
demand, it would have to be tested be-
fore its efficacy were known. Even If
all countries were agreeable, 1t might
not be practicable.
| Wheat Pool Holdings.
| However, the Canadian wheat pool
claims to control about so per cent of
the Canadian harvest, and official pre-
diction has been made that by 1881
| American co-operatives will control 40
| to so per cent of the United States
crop. Together they would be power
| full influence in regulating certain pc
| RODS of world trade.
I Baltimore Markets