Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-10
TESTING OF GRAIN
MARKET FORESEEN
Professional Operators De.
CIared Ready to Buy Only
on Scale Down.
BY FRANK l. WELLER,
Associated Press Farm Editor.

The new marketing period started yes
terday is expected to disclose what like
1ihood grain has of holding a buoyant
tone in the face of advances which are
estimated to have added $500 100000 to
the theoretical value of farmers hold
ings in 80 days.
There has been tremendous profit
taking by ofessionals-enough to have
caused a material setback had it not
been for continued outside buying
and the trade knows that these oper-
atorS favor combining future purchases
to the Scale-down.
One prominent Chicago grain firm
takes the position that, intrinsically,
wheat is not worth the current price
and says that if heavy selling comes into
the pit, now that shorts are pretty
we'll eliminated, it may not be very
readily absorbed.
Many Lines Reinstated.
Persistent buying power on the breaks
was the cause of frenZied short COW
ering and has led to reinstatement of
many sold-out lines.
Those arguments are all on the side
of traders who advise caution in follow
ing the bulges They do not deter
operators who believe the real founda-
ton for the advance in grains was the
fact that the market had been allowed
ito decline too far. Many believe that
grain, particularly wheat, Is sim mod
erately priced.
The position may be supported some
what in that Europe has followed the
advance here. World wheat prices have
moved into new highs for the crop and
! deferred deliveries new high level Tor
the season. 1t is said to reflect a
sharply changed world outlook in the
/ last few weeks.
When the United States and Canada
we're advertising unlimited supplies OF
wheat and Russia came into the expert
trade, European buyers felt so secure
they were not concerned with future
requirements Suddenly there is news
that Russian offerings may decrease
materially. Almost as suddenly North
America. holding the bulk of the worlds
bread grain, is recovering from the con-
citions Of six months ago. 1t is the
natural conclusion that if importing
countries turn to the United States and
Canada, there may be constant strength
in the market throughout the Winter
and Spring.
Signs of strength after that are said
to lie in private estimates of an 10 to
% per cent reduction in the domestic
Winter wheat acreage, % per cent
reduction in Argentina 80 per cent in
Australia. and intimation that Russia
cannot complete Fall seeding.
Inquiries Moderate
For the present. however, British mill
ing inquiries are of moderate volume.
Port stocks in the United Kingdom
were reported at 100000 bushels on
November /, almost 100000 bushels
more than for the corresponding date
year ago. While growers here were not
inclined to sell freely on rising mar
ket, domestic mills bought principally
for current needs.
Failure of the country to increase Of
ferings Of corn appreciably, despite
sharp bulges that carried the cereal into
new highs, has helped change sentiment
in the feed grain. The quality of the
new corn is unusually good Some be-
leve corn finally to be out of the rut.
Rye has been leading the price flight
recently. A shortage Of 10000 900
bushels in the worlds crop compared
With last year makes potentially bull
ish situation. Germany has bought
rye in this country fer the first time
in two years. Russia apparently has
no great surplus of rye, and the Cana
dian crop was decidedly short.