Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-10
OUTLOOK FOR CORN
PRICES IS HIGHER
Small Supply and Light Of
feringS Result in Re-
cent Advances.
BY the Associated Press.
BY FRANK I. WELLER,

Corn looks better than wheat for the
moment, although it continues to be in
fiuenced by bread grain values Prices
strengthened under lighter offerings
during the last marketing period while
wheat remained weak in the face of
sharp competition among exporting
countries.
This is the time of year when corn
receipts, as a rule, StartSt to decrease and
it will be easier than wheat to bull.
Traders are paying some attention to
cash corn which is around 100000
bushels or nearly 100000 bushels
under the five-year average.
Supply Below Normal.
The supply of corn in all positions IS
enough below normal requirements to
make strong position if developments
from now on are favorable. Very small
country offerings and light consign-
ment advices are further factors sug-
costing that corn may be good property
at this time.
Although Chicago professionals in
corn are very bearish, interest in the
cereal is growing and some commission
houses which continue to absorb corn
predict it will go considerably higher.
Shippers, industries and feeders are
taxing current offerings.
The week may not have been fair
test for corn since rain and snow left
farm to-market roads in bad condition
and may have curtailed the intended
flow. Trade estimates place farm
stocks around 25O,000,0oO bushels below
those OF q year ago. They indicate,
however, that more than half the short
age in the crop already has been made
up by reduced consumption.
One fly in the ointment is the fact
that market stocks of corn are only
about 100000 bushels less than a year
ago. Another is that farm stocks of
oats, which can be fed more heavily If
corn gets too high, are around 100000
600 bushels larger than year ago.
Wheat Rallies Anticipated.
Occasional rallies in wheat are antic-
ipated, but If the general run Of news
continues to be bearish and devoid of
new developments, advances may be
only temporary. Improved moisture
conditions make 1t appear there have
not been many years when the crop
outlook was as favorable as 1t is at the
present time.
However, there is some feeling that a
majority Of the traders have been too
bearish and sentiment in grain Is said
to be leaning toward the buying side,
especially on breaks. Unless the Farm
Board allows cash wheat to decline new
crop futures likely will remain very re-
sponsive to any bullish items that APP
pear. Purchases by marketing agen-
cies kept domestic cash prices fairly
steady during the week while cash
prices declined in foreign markets. Mills
are fairly active buyers and elevators
are taking fair amounts.
Marketing continues heavy, rejecting
the relatively large stocks remaining on
farms. Trade estimates place the
amount close to 10000, 900 bushels more
than year ago. Receipts at the prin-
cipal hard Winter wheat markets for
the week totaled 1876 cars, the largest
weeks shipment since September.
While the storage congestion prob
lem seems to be cOmewhat relieved right
now, space at terminal markets is a
scarce commodity. Duluth reports
room left for only about 100000
bushels and Chicago and Kansas City
are crowded. March deliveries may
intensity the situation.
Storage Plans.
The Grain Sterilization Corporation
has announced it will move 100000
bushels of wheat from Chicago Tor
storage at points unnamed. It is max
ing daily sales to continental European
buyers, expecting thus 70 move So,uUU,-
600 bushels, for which George Miner,
general manager, says the corporation
is getting cash. Storage stocks already
are beginning to be cleaned out at New
Orleans in this manner, Miner says.
Such wheat held at Pacific Coast points
Is expected to be sold largely in Oriental
markets The action is expected topro-
vide additional storage for the new 1891
crop.
Farm Board officials say that shorts
and hedgers can get all the March
wheat they want in the pit at around 70
cents, the pegged price. There Is no
intention Of squeezing the shorts.
Supplies in exporting countries are
still large and the European trade APP
pears unwilling to buy much beyond
current requirements. However, re-
Taxation of milling restrictions in Ger
many indicate that stocks of native
grains may be declining in Europe and
that the next few months may see active
buying.
The calculated surplus for export from
the United States, Canada, Australia
and Argentina is placed at 100000
bushels more than year ago. Stocks
on ocean passage have been brought to
a, total of 57,0O0000 bushels.