Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-28
PRICES FOR WHEAT
in NARROW RANGE
Market During Week Has
Held Within One Cent
Trading Area.
RY FRANK ]. WELLER,
Associated Press Farm Editor.


The wheat market has held within
about a cent trading range for week
and any move up or down should inol-
cate the immediate trend.
While some traders can't see any
thing but an export basis and lower
nr,ces there is a strong inclination, in
quarters to own Chicago December
wheat merely upon the fact that the
grain cannot be produced by any
method of farming known today at even
near present values.
Fair Absorption Reported.
In line with the latter view, commits
sion houses report fair absorption OF
wheat by outside spectators VINO are
huvinp it because it Is SO close 10 the
5O-cent level, which in the past al
WAYS has marked an upturn IN values.
In truth. the only accounting factor
in market strength seems 10 De Ina.
nrices are fundamentally low and that
offerings on declines are quickly "o
-sorbed.
with a good mill demand absorbing
the sharply curtailed receipts OF nara
Winter wheat. foreign news is almost as
much ignored as if the country were
last is subject to debate many traders
,eynecting a new rush of wheat wnen
reduced freight rates go into effect on
August l.
Shipments to seven centers totaled
only l4l49 cars last week. compared
with 2l,053 a week ago, ana had
steadying influence in Central western
markets. 1t may be argued that re-
ceipts are tapering off naturally pc
cause of the early harvest, but most
observers are prepared to believe the
letdown was caused by unfavoraole
weather for loading and desire on
the part of farmers to hold back Tor
lower freight rates.
Those who believe domestic values
will have to come down to world prices
unless foreign countries advance their
ideas say American markets have he4d
I'D thus far because Farm sBoard re-
tention of old wheat sent purchasers
into the new crop. Now they suggest
big consumers have sufficient wheat Tor
some time to come and a big move
ment to market after August may
find mill demand curtailed and prices
at the mercy of world competition.
In that connection, Liverpool is l TO
2 cents lower than a week ago, due to
the general weak demand situation re-
Sulting from the unsettled economic
conditions in Europe and prevailing
trade barriers High tariffs keep native
wheat at $l.73l4 on Hamburg mar
kets, $780, at Paris and sl28 at
Milan.
Meantime. new Russian wheat ready
for shipment sold last week at Liver
pool at 58l. to 6034 cents bushel;
63-pound Argentine wheat, afloat, at
81 cents: No. l hard Winter tAmeri-
cam at 6O7s. Gulf port quotations. and
No. Canadian Manitoba at 81 cents.
Price Prospects.
Some say there probably will be no
radical change in prices until acreages
are reduced next year in the whole
Northern Hemisphere. The Depart
ment of Agriculture estimates the world
wheat crop will be 250,000,0O0 to 300,-
000 003 bushels less than last season,
and a 80 per cent reduction in acreage
is forecast for new paintings in both
Argentina and Australia.
While Germany expects crop about
$4,000 900 bushels larger than last year,
the Russian harvest is not coming up
to expectations, and prospects in Mani
toba are for a crop of SIS to 10 per cent
of normal, in Saskatchewan less then
30 per cent. and in Alberta 70 to rs
per cent CT normal. Light yields are in
prospect in the American Spring wheat
bit, where harvesting already has
Started because OF the hot, dry weather,
which fastened maturity.
Although the Grain Sterilization Cor
poration denies rumors that it has con-
6racted with Eastern interests to take its
41oldings-a thing which right now
would mean much to the political and
economic situation. providing the grain
were not offered in such a way as to
-depress prices-there is a disposition to
await further developments in the
matter.
The corpora ton is reported to have
sold $4,000 900 bushels abroad over the
last weekly marketing period. and some
close to the current grain situation eX-
pect the board to announce within a
few days the actual amount of wheat
it is holding. It's purchases are be-
1ieved to have been close to 300 900 900
bushels, but sales may have reduced
present stocks to around 200,000,0o0
sbushe!s