Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-03
TRADERS PROFITS
IN WHEAT ARE BIG
Reaction May Follow Recent
Price Gains in All
Grains.
BY FRANK /. WELLER,
Associated Press Farm EDITOR. \

Unless fresh buliish news comes into
the market, a reaction Of sorts would
seem to be In order for wheat
A puzzled trade has seen the grain
advance Is cents q bushel above the
seasons low point, or a gain OF 81
per cent above quotations Of a month
ago. Some feel that the recent advance
has been too rapid and look for the
usual setbacks unless there Is broader
faith in the reported changing world
position Of wheat.
Breaks are not, however, expected TO
90 very far II the present underlying
strength Is maintained. The market
has been broad and suggests Eastern
interests In q big way. one prominent
operator Is widely quoted as predicting
IS cent wheat in the present crop year.
He points to the advance in durims 10
IS cents a bushel.
Extent of Advance.
Both futures and cash wheat are
higher than any time this season.
Winter wheat markets advanced 3 to 6
cents in the last week; Pacific Coast
markets, 8 to 9 cents: California mar
kets 10 to Is cents per 100 pounds and
corn 3 to 4 cents bushel.
There has been some pretty stih
profit taking In wheat and while that
SLlIk 10 hIl LdtlJ 1dCIOK ~ 10 AG-
called that during the numerous re-
actions of / cent or more it has been
almost impossible for those who took
profits to get their wheat back again
without causing bulge TO new highs
when any buying developed.
Material strengthening of world mar
kets, increased export demand for North
American wheat as result of smaller
offerings from Russian and the South
fnex taV NTH INF
able growing conditions for the new
crop in parts of the domestic wheat
belt were the chief bull factors. Those
are fundamental, but some of the up
turn was occasioned by alarmed short
covering when wheat moved into new
high ground and met general demand.
Too, the officially denied reports that
France was dickering with the Farm
Board for 10000, 900 to $4,000, 900 bushels
of wheat exerted influence, regardless
Of their nebulous nature. They led TO
reports that Farm Board sales may be
much larger than the general public
believes, and that if the board gets the
bulk of its holdings sold there may be
a different aspect in wheat the world
over.
1t has been suggested that there may
have been an enormous feeding OF
wheat to live stock which might de-
cidedly cut the supply for bread If the
world suddenly turns to North America.
Encouraging the thought was advice
that Russian shipments decreased 1,952,-
600 bushels and Black Sea shipments
2,I44,000 bushels for the week. Com
i1ent from Liverpool was to the ef-
feet that Russian wheat in store there
unsold is not of satisfactory milling
quality, and that conSumptive demand
abroad may have to turn to the United
States and Canada
One of the largest American exporters
claims this week to have had an over
night sale of more wheat than for
single day in two years. Wheat sales in
all positions for the week are estimated
upward of 100000 bushels Of Mani
TOBIAS and hard Winters. Argentine
wheat has advanced 2 cents a bushel
and Russian wheat in store In the
United Kingdom to 4 cents.
Credit Pool.
Indication that the national credit
pool for banks would get into action
this week has brought confidence into
the market, and the trade says there
are resting orders to buy May wheat
at 81 cents and below.
Plans for a National Credit Corpora
ton to make loans of $1,000,000 to
farmers to hold corn might send prices
higher if there is any improvement in
consumptive demand. In the latter re-
spect corn is attracting more attention,
since the advance in wheat may take 1t
out of the feed grain class and put corn
and other coarse grains back into the
feed boxes.
Speculation on that score brought the
corn market to new highs for the
month and gave July contracts a new
seasons high level.