Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-31
Commodity Price
Trends of Week
BY n. N. MeGHL.
Editor, McGin Commodity Service.

AUBURNDALE, Mass, January 81
H).-Commodity prices during the final
week in January made an unusually
poor showing. Not for a period of
many months has the price decline
proven so pronounced as regards the
number Of groups affected. During the
past week, out of Is individual COM
modify groups, IL declined, remained
unchanged and not one advanced
AS long as industrial activity remains
at critically low level, accompanied
with stagnation in the stock market,
widespread unemployment and i'm
paired purchasing power, there is little
basis for confidence in commodity
prices. There are two principal reasons
why consumers are not covering ahead
at present despite the fact that prices
are low. First, is the fear of loss by a
further general price decline, and sec
ond, demand for finished goods con-
tlnueS sharply under normal and con-
sequently stocks now held, although
low, appear large In terms of consump-
ton. Much reference is being made to
the long-Swtng trend Of prices, it being
generally agreed that fundamentally
the underlying trend Is still downward.
A review of price records for the past
10 years clearly shows that in addition
to the complete price cycles of from
three to five years duration, there are
also broader movements of from 10 to
80 years duration. Broad movements
up or down are constantly subject to
interruptions of Importance. There
fore, the statement that the underlying
trend of prices is still downward means
that during the next decade, whenever
a business recession sets in, commodity
prices will probably be forced down to
new low, just as the price level today
is lower than in 1921.
All Commodities.
Noting specific price changes in all
commodities, the average Sagged ma
terially during the past week. The
principal grades that were lower were
industrial products, agricultural prod
uctS, live stock, chemicals, hides and
leather, non-ferrous metals, paint ma
terials, textiles (f1ne and coarse) and
vegetable oils.
Industrial Products.
After showing considerable resistance
to a downward trend for several weeks,
industrial products we're forced to a
new low, largely due to the price weak
ness in non-ferrous metals and textiles.
One of the most important develop
mentS in January was the distinct halt
in the upswing of raw material inven-
torres, and In many instances a mod
crate revision downward.
Agricultural Prices.
Generally weaker, agricultural prices
reflected the inability of demand to cope
with burdensome supplies, not only in
this country, but throughout the world.
AS long as the Federal Farm Board sub
sidizes any crops, production will re-
main high. The drought and low prices
should help materially in reducing acre
age this year.
Live Stock Prices.
Live stock prices were also forced to
new low during the past week. Poor
quality cattle and hogs are rapidly be-
ing eliminated, which should pave the
way for better conditions later in the
year, particularly as feeding costs are
low.
Textiles
Textile prices lost ell Of the ground
gained during the third week in Janu-
airy and are now comparable with the
price level in the middle of the month.
Important Price Changes.