Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-24
FURTHER DECLINES
IN WHEAT ARE SEEN
Farm Board Action May Re-
suit in Still Lower
Prices.
BY FRANK I. WELLER,
Associated Press Farm Editor.

The Farm Boards decision not 10
stabilize the 1881 wheat crop and the
new low level in futures prices for new
crop deliveries seem TO suggest that
weakness In wheat, not expected before
the new crop began to press the mar
ket, may develop irregularly from ali
falr rallies right along now.
would be natural to suppose that
withdrawal of Government suuport
would see domestic prices slip back to
the world level unless some strengthen
ing factor is found
However, no one ever seriously believes
the board would continue to peg wheat
prices. The news is not expected to
have any immediate profound influence
on values. 1t may give the market q
definite trend, which II has lacked for
weeks while prices backed and filed
over narrow limits.
Some Bullish Features.
While conditions surrounding the
wheat market are universally bearish,
there are some bullish elements In the
domestic situation, such as the low
price level, Farm Board support of cash
wheat and the unusual weather with its
threat of crop damage appearing. Liver
pool prices last week were practically
the lowest in centuries.
Right now crop conditions are favor
able, but it Is too early in the season
TO sell wheat short on present prospects.
Trade reports from Fort Worth, Tex,
said the Southwest had a record crop
In sight.
What that would do to an unsupported
market Is viewed with fear and trem-
bling, particularly since farm stocks Of
wheat are estimated at 70 per cent
ABOVE year ago and 81 per cent above
the 1O-year average. Twenty-Five per
cent OF the 1890 crop was said to be on
farms on March l, the highest per-
centage Of the previous years crop held
on farms since 1916.
Chairman Stone Of the Farm Board
says ne believes no congestion will be
caused by the oncoming crop. The
country has, he says, some 30 to 20
million bushels more storage space than
year ago. At the same time, space at
Chicago Is said to have dropped from
$4,000 ,009-bushel capacity to $4,000, 900
IN the last few years. The Bureau of
Agricultural Economics says that unless
there Is q reduction in the 1881 yield
or an increase in exports market con-
gestion might be serious.
The trade reports that the 81, 100000
bushels the Farm Board hoped to sell
abroad TO increase domestic storage
space Is being offered at Is cents under
old Chicago I. o. b. Gulf ports with in
different results. This, back in Kansas
City. would figure out about SLY cents,
or about 10 cents under the stabilized
price.
Canadian ofhcials estimate the United
States TO have had for export or carry
over on March ! some 325, 000. 900 BUSH
els, Canada 232,00O,0 900, Argentina
14l. 0O0,00 and Australia 1875. 600 900.
Australia exported 5,256,000 bushels
last week, or about 1,000,000 bushels
more than Canada and the United
States together exported in both wheat
and -four. Purchases Of Is cargoes Of
Argentine wheat by the Orient at prices
equivalent to 50 cents at Puget Sound
markets PROBABLY constituted q record
for this trade and indicates the sharp
competition which American offerings
win meet In that area.
Argentina shipped almost 10000 600
bushels more than for the same period
year ago and Russian shipments
amounted TO more than 100000 BUSH
els. Russia is said to have 10000 600
more left for export Thus, with exc
porting countries continuing to press
offerings on the world market It IS
hard for values to rise. The world
visible supply on March reached a
new high record.
Canadian Supplies.
Navigation, about to open on the
Great Lakes and the st. Lawrence, viii
release another flood Of Canadian grain.
There is q bright side. however, in that
stocks on the continent are less than
half what they were a year ago. Some
reduction in acreage in Europe is ex-
pected this year, although countries
with high protective tariffs are liable
to plant as much wheat as possible.
Country advices say the corn move
ment is over until after planting East
ern interests are said to have only small
supplies and are buying from hand to
month. Country corn users say they
are trying hard to get cash corn and
bidding over Chicago without results.
Still, prices hold generally steady, ap-
parently unable to rise against the
weakness in wheat.
It is said that the high quality of
corn, the universally mild Winter and
free feeding Of lower-priced small
grains have helped materially to con-
serve supplies of corn and that there
HAno - 10 Awnn Ia,a