Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-17
Of WHEAT
PRICE is RESUMED
Government Again Enters the
Market to Prevent Fur.
Their Declines.

Special Dispatch to The star.
CHICAGO, November 17.-Wheat was
back in the limelight today with the Of
ficial solution OF q mystery that had
puzzled traders In that commodity for
over a week.
This solution was afforded By Alex
ander Legge, chairman Of the Farm
Board, who announced that the Gov.
eminent had re-entered the grain mar.
kets and had purchased millions Of
bushels Of wheat In an attempt TO stabii-
ize prices.
While the Farm Board was acting in
this country, representatives Of farmers
in Western Canada were demanding of
the Dominion government that It utilize
its resources TO put an end 70 the price
decline there. On Saturday December
wheat at Winnipeg fell to So cents-the
lowest price in history, and down near
y 10 cents from the previous week.
Canadian farmers want the government
TO maintain prices at between 81 and
S1.15.
Price Pegged.
At Chicago, while the Canadian mar
ket was falling. the December future
was being pegged with strange precision
hands at that figure. Offerings in huge
quantities would come out on the mar
ket and then disappear completely In n
seemingly Unsuitable nav of demand.
always at Is cents. Somebody. obvious
~, was standing like q rock at that
figure, and the trade recognized Gov
eminent participation, but could not
fathorn the purpose.
Chairman Legge solved that mystery
sunday night when he said:
Generalization in world wheat mar.
kets has made 1t necessary for the grain
sterilization corporation TO again enter
the wheat market in order to stop pam
icky selling and to prevent further UNI
warranted declines In domestic prices.
Comparatively, wheat Is lower In price
than other agricultural commodities.
The price Of flour fully reflects the
price of wheat. which. no doubt, Is In
creasing the per capita consumption.
Further price declines would be In
sympathy with foreign markets and not
justified by domestic conditions"
Previous attempts by the Government
agencies to TX prices failed. The sta
bilization corporation bought heavily
last Fall and during the Spring In an
attempt TO bolster the market. Original
ly 1t had tried to maintain level Of
$1.19 at Chicago, but wheat gradually
worked down to around 80 cents. BY
the time 1t withdrew the Government
was holding $4,000, 900 bushels It has
disposed of some Of this wheat and has
replaced 1t with 10, 0O0, 900 bushels Of De-
cember futures on which actual delivery
has been demanded for December /. So
much wheat Is in sight, however, that
this demand caused little excitement.
Attack on Short Sales.
A similar lack of results attended the
attack made by the Government on
short sales of wheat by the Russian
government agencies on the Board Of
Trade. The Russians were forced out
of dealing, with . 100000 profit to
them, but prices continued to decline.
Stories were told in the trade during
the past week Of q rumored sale Of
so 900 900 bushels Of wheat by the Gov
eminent agencies here to Italy at q
price around so cents bushel. This
could not be confirmed.
Previously the Government had dis
avowed an intention to AK prices. But
with world markets demoralized. IL Is
back again. With the Government In
the market, even though buying only
enough to hold prices steady, the ten
dency has been TO brighten away pfi-'
vate trade and leave the market TECH
nically weakened.
Russia continues to dominate export
trade with its large shipments being
dumped in European markets much
under the best prices offered by North
America, Australia or Argentina.
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