Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-05
FIRM TONE NOTED
IN GRAIN MARKETS
Commission House Absorb
ton Aids Prices-ConSump-
ton Is Chief Factor.
BY FRANK I. WELLER,
Associated Press Farm Editor.


Broader commission house absorption
has given domestic grain markets a
firmer undertone. Whether it is main
tanned depends largely on consumer,
response the world over to prices which
are the lowest in "a years.
Under normal conditions of trade, low
wheat prices stimulate increased con-
sumption of bread and that in turn
advances the value of grain. However,
efforts in this country and in Canada
to enhance prices by holding wheat of
the market has resulted in action by
importing countries to keep prices of
native grains above those of the free
markets of the world. This interior
ence with natural trends Of trade has
kept consumer prices high at time
when purchasing power is low, and
low prices are not being reflected in
any Increased consumptive demand for
their products.
Paris Prices.
Native wheat at Paris is quoted at
$1741h, at Hamburg at $1.67A and at
Genoa at $1.43M. French, German and
Italian tariffs are forcing the people OF
those countries to pay high prices for
wheat while Australian wheat sells in
English markets for 1894 cents a
buShel; Canadian for II Il and Argen-
tine for 81 81
In this country governmental activi-
ties are holding March and May wheat
well above the world price while cash
wheat of export grades ranges from 68
to 70 cents. July wheat, orders for which
may be filled from the new crop, is of
undetermined value. Generally, 1t is
nv m Il
tions unless sterilization operations are
carried into the new crop year.
Winnipeg has seen the only material
advance in wheat priceS-about cents
a bushel. The trade regards as con-
structive the Canadian governments de-
cision not to interfere with the mar
kets. Prime Minister Benefits recon-
mendation that Canadian sterilization
be privately financed is said, however,
to have diSpleased q numbtr of Cana
dian farmers.
Mr. Bennett previously had announc-
ed orderly marketing" for the 1880
Canadian crop. Winnipeg receipts on
January 2, however, totaled 449 cars,
as compared with SO cars a year ago
and lasvweek Canada supplied almost
half of the worlds wheat shipments.
See End of Decline.
AllC 4dCb bIldb QOIIlCcJlC May WIlcdJ
is at such a premium over July makes
for increased country selling. Liquida-
ton may become marked with the ap-
proach of tax-paying time, March /.
While some feel that July wheat will
go stu lower, others believe the entire
feeling in wheat has undergone a de-
cided change. A larger percentage Of
traders express the belief that the de-
cline is nearly over and that there
should be moderate upward reaction,
particularly if there should be any at
tempt on the part Of shorts to cover
or a new run of buying appear.
Because wheat demand from all
quarters is so poor, there is still very
little which suggests any permanent
advance in new wheat values. Strength
in the securities market might help.
The National City Bank of New York
expects to release a large amount of
funds when liquidation is ended, but as
far as money is concerned it has been
the easiest for years. The trouble
seems to be q lack of confidence to in
vest 1t. There has been a decline of
about Is per cent in the value of ex-
port trade.
The market for corn has been well
liquidated by the recent decline and
there appears to have been some REIN
statement of long lines as well as ex-
tensive covering on the short side
There is an excellent demand for cash
corn, with shippers, industries and ele-
vators in the market No increase is
shown in country offerings and advices
of consignments are small.
Effect of Guarantee.
While little real competition is ex-
pected from Argentine corn, or because
of the Importation of most other feed
grains considering currently low prices,
considerable thought is given to the
idea that a guarantee against possible
competition might boost domestic
values.
Congress was expected to be asked
to consider today plans for temporary
embargo on wheat and feed grains.
There is some fear of foreign resent
ment and retaliation. Certain members
of the Farm Board have suggested to
influential leaders of Congress that 1t
amend the tariff act requiring investi-
cation of foreign production costs on
farm products as necessary to increased
duties by presidential decree.
That would make it Immediately
possible to advance the tariff so per
cent under the flexible clause and elm
mate necessity for an embargo.