Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-08
HIGH CORN PRICES
BELIEVED REACHED
Traders Do Not Expect Grain
Will Exceed Recent
Levels.
BY FRANK 1 WELLER.
Associated Press Farm Editor.


The trade is about convinced that
corn has sold as high as its going to.
May corn broke under so cents for the
first time last week when futures on
the new wheat crop found new low
levels
The persistent failure of an agrees
Sive cash demand for corn to make its
appearance and a belief in some quar-
tiers that there probably will be a
normal difference between the price
of wheat and corn later despite the
pronounced shortage OF the feed grain,
have induced some operators to buy
wheat and sell corn.
1t is pointed out that with July
wheat around SO cents and September
around So, corn cannot rise very much
If it assumes the normal habit OF be-
ing influenced by wheat prices. July
corn has been 81 and September at
60A.
Furthermore, most feed grains which
can be substituted for corn have gone
lower. Promised increased acreages of
corn, oats and barley seem to have
increased the peSSimiSm over the future
of the market.
Outside Interest Lacking.
There is continued slow demand for
corn from consuming areas. Approach
ing pasturage in many sections which
will be available to supplement corn
supplies early in the Summer were also
weakening influences. Aggressive selling
by Eastern commission houses and pro-
fessional pressure disclosed an absence
of outside interest in corn.
Sentiment is still mixed on wheat.
Where one crowd holds that wheat con-
ditionS are such that a wild advance
would occur should some important
bullish factor appear. another insists
July futures eventually will sell at
Scent discount under September.
While the condition of the new crop
is considered to be excellent, it is re-
called that on another occasion in the
past an almost perfect April crop con-
dition saw wheat subsequently damaged.
There has been a little buying on
reports calling attention to the pos
sibility of damage from grasshoppers,
particularly in the Northwest, if Spring
weather should be favorable for their
development. An unusual presence of
the pest was reported last Summer and
under favorable Matching conditions
serious damage might be expected in
the heavily infested sections.
Early emergence of grasshoppers has
been reported in Missouri, South Dakota,
Florida and Mississippi-the earliest on
record in Missouri. More of the insects
we're present last Summer in Western
Montana than at any time since the
series of bad outbreaks which began
in 1917.
Crop Forecasts.
On the bearish side are indications of
unusually small abandonment of wheat
acreage. Private forecasts at the first
OF April placed the crop about 5000, 900
bushels above last seasons harvest.
Crop prospects in Europe continue
foyr n
for wheat is rather dull with millers
generally buying for immediate needs
only. Canada sold between 1000, 900
and 100000 last week, principally to
the continent, and reported that lots Of
wheat was wanted on scale orders below
81 cents, or under the world market.
Stock in the chief ports of Argentina
are about 100000 bushels smaller than
a year ago and farmers are reluctant
to ship wheat due to the unsatisfactory
prices.
Domestic cash wheat demand is re-
ported to be excellent, with flour mills
active buyers and cash markets firm.
Farm Board officials are looking for a
good demand from millers from now on,
but the general trade is a little Skepti-
cal about big demand for cash wheat
until they see more being shipped from
primary markets to consuming centers.
A prominent grain trader at chicago
says it looks as II exports from March
to the end of the crop season would
be $4,000, 900 bushels less than for the
same period last year, thus making the
carryover 100000 bushels more than
it was on July /, 1880. Assuming the
grain sterilization corporation will
finally own 100000, 600 bushels, which
would leave about 100,000,000 bushels
of free wheat for purposes other than
storage, he says the markets would have
tendency TO become more normal as