Evening star., 1931-12-08
STRONGER WHEAT
POSITION IS SEEN
Reduced Offerings and Bet.
ter Mill Demand Have
Aided Market.
BY FRANK i. WELLER,
Associated Press Farm Editor.

The wheat market is erratic. but
there is a growing belief that a much
stronger general position is in the
making and any decline likely may at
tract broader buying.
Domestic values strengthened ma
terially during the week despite the
very unsettled situation in foreign mar
kets. Reduced offerings, together with
a good mill demand, we're principally
responsible for the firmer tone. Corn
was independently weak as result Of
continued slow market demand
The general wheat market situation
remained very unsettled, rejecting the
further sharp decline in the value of
the English currency, threatened wealth
er damage to the crop in the Northern
wheat areas of Argentina and uncer-
tainty as to available supplies in Russia.
World Markets Sensitive.
World wheat markets have become
increasingly sensitive to the uncertain
financial situation which eliminated
in the suspension of the gold standard
in Great Britain and subsequently in
several other European countries and
which have been reflected in an almost
worldwide tightening in the regulation
and control Of credit
Trade and financial transactions
under these conditions have become
difficult and price trends are obscured
by f1uctuating exchange values of cur
rency. Trading in Central and Eastern
European markets, where the situation
is particularly acute, has been greatly
restricted and imports of wheat to
Austria have practically ceased as re-
suit of exchange difficulties.
Depreciation of the currencies of the
principal exporting countries, Canada,
Australia and Argentina, has given
these countries a temporary advantage
in export markets. in wheat. 1t is re-
stricting export demand from the
United States.
Interest in wheat from abroad is
stagnant, due to unsettled economic
conditions and the advent of pressure
from the Southern Hemisphere. United
States wheats are held well above the
Australian and Argentine level and,
therefore, temporarily are out of line
for export, especially as Canadian sorts
are underselling Americans in some
instances.
Despite this a good domestic milling
demand, with advancing premiums for
cash wheat, is creating a stronger
market for futures and there is more
disposition to buy on breaks than for
several days past. Underneath it all
is the estimate that net world require
ments for the season will be 10000, 900
bushels larger than year ago. Some
say the strong domestic cash situation
will sustain prices until such time as
foreign conditions improve.
Russian Cancellations.
Several of the big exporters say the
most important news in the wheat sit
uation is the reported Russian cancel
lstion of shipment contracts and the
purchase of Australian wheat for in
ternal use. The latter was completely
ignored in British markets, the belief
being that if Russia imported wheat at
all it was only a normal proceeding
such as might occur in any other ex-
porting country that required specific
wheat for milling mixtures.
Some, however, added the Russian
news to the reports that the combined
Argentine and Australian crops would
be 100000 bushels less than last year
TO argue that North American exports
shortly would increase. The trouble
there, so far as the United States is
concerned, is that with Canadian
money discounted almost II per cent
Winnipeg wheat actually is about
cents under Chicago on the May de-
livery and consequently in much better
shape to take the world market.