Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-28
WHEAT PRODUCTION
COSTS FIX PR|CES|
European Consumers Seize
| Opportunity to Buy at
Bottom of Market.
BY FRANK i. WELLER,
Associated Press Farm Editor.

A new set of economic values has
played havoc with traditions of the
grain trade.
Unwelcome as it may be, the fact re-
mains that wheat prices in the United
States are showing determination to
respond to production costs to the vir'
tual exclusion OF all other prlce-nxln1g
factors The situation may be only
temporary, but it has been sufficient to
countenance the rare spectacle of mar
ket interest in animal feed surmouptinR
interest In human food, particularly
since corn prices have climbed into the
seat with wheat.
Traders staked their regulations that
wheat prices would improve If Euro
pean buyers would only return to their
old habit of buying North American
grain. Shipments last week. totaled APP
proximately 100000 bushels, almost
as much as year ago and almost
three times as much as they have been
running. Still, prices to American
farmers have averaged only about or
4 cents bushel above the cost OF pro-
duction.
Foreign Consumers Wait.
European consumers. apparently able
30 get all the wheat they need on the
other side of the Atlantic, seem delib-
erately to have waited until they could
buy American wheat at figure firing
ing on the cost of production.
For DAYS market specialists have
been saying that wheat prices can go
no lower, the movement of Winter
wheat is slackening, farmers are feed
ing wheat to live stock, the Canadian
yield has been impaired, domestic mills
are readily taking current offerings,
and worldwide contracts have been
H. AaanriroY wheat hIlf still
prices hover near the cost OF producing
wheat.
That, probably as much as anything
Is responsible for farmers who have
been getting from 10 to 80 cents bushel
above production costs launching the
almost unheard-of practice OF feeolng
wheat to live stock.
There has been a drop in the qualty
of wheat receipts, and G. E. Hun, presl-
dent of the Farmers National Grain
Marketing Association, says the utiliza-
ton of wheat for live stock feed is ex-
banding. Texas, particularly, he says,
Is feeding low grade wheat on the farm
He believes wheat to be going into feeo
at a greater rate than at any time IN
the last 20 years. ,
If it keeps up, he says, IL soon WIN
remove the 100,0C0,000 bushels various
interests have suggested That the Farm
The corn crop, Huff says, has oeen
Knocked into a cooked hat by drought
and heat. Unofficial estimates now in
dictate a zoe, oe0, 000-bushel reduction IN
the anticipated yield. There is no 1nol-
cation that the drought Will be broken
for another week which, with corn In
the stalk. means much scorching and
the inability of kernels to NIL
Buying i'm Corn Market.
The result has been a picturesque
buving on the corn market. Inc pne-
nonomon of corn, which usually sens
far below wheat, equaling breao gram
values has electrified traders, All oIieI-
ings on declines passing quickly hOo
strong hands. Gown,
cron Welding more than $500 ,OOO,ooo
bushels a year. The fact that pros
meets of a zoo, 600, 900 bushel reductlon
in the 1880 crop has stimulated prices
tn sllch an extent, while wheat, Wnicn
averages only about 600,00O,OOO Dusncls
. wear has a hard time holding Its own
at bed rock prices despite encourage
nent further magnifies the changing
economic values.
Demand for the limited supplies OF
old crop corn continues active. Marker
stocks now total only about S,OOu,uoo
bushels and recently have been olIn IN
isning at the rate OF nearly l,UUVUoo
bushels a week. Country offering nave
increased at the higher prices, Wnlcn
now are about II cents bushel above
the low point reached few weeks ago.
Demand slackened at some points at the
higher price level, but current offerings
were readily taken by industries, snip
xaerS and feeders