Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-04
DROP IN PURCHASES
NTs WHEAT PRICE.
neeent Declines in Market
Laid to Decrease in
Grain Demand.
BY FRANK I. WELLER.
Associated Press Farm Editor.

Taking price factors at face value,
A NAV seem strange that more buying
power does not come into the grain
market. S .as -
Domestic futures declined to the low
aRf. noiYif on record when wheat for July
delivery sold at Chicago last week at 4S
cents 3 bushel, 1014 cents under the
liverpool price quoted for No. hard
Winter for shipment from the United
states by August IL. The dip to such
8 range under the export price and the
very decline, itself, should make TOT a
strong undertone.
The q TO 8 cent decline in cash wheat
sent, contract grades to 42 cents az
omaha. 1917 cents under Liverpool and
S0h cents under the top price shorts
caught In the squeeze had to pay the
Corner for July corn. The two grains
are under a different set OF circum-
stances but normally wheat Is higher
than corn.
Bulllsh Advices.
only poor foreign demand and mar
row outside buying seems to prevent the
distinctly bullish advices from potn
eices of the international line from
checking bearishness In wheat at arouno
the 50-cent level. 1t now appears tnat
the Spring wheat crops OF the uniteo
states and Canada combined may be
substantially below the average Caha-
dian yield alone.
News from the Spring wheat sections
IN the worst the trade has known IN
wears. A Canadian government report
saws the prairie crop Is past relief and
That at best the yield viii be phenome-
i1aIIy small. The crop In the four
Northwest states frequently Is estimated
now at only 10000 900 bushels, COM
,,ared to AN estimate Of 122, 000, 900 Q
month ago and yield OF l92.oo0,OOO q
year ago.
first big movement Of Winter wheat Is
over the Spring wheat calamity VIII
assert its influence. Reduced freight
rates In the southwest. effective August
i are expected to bring wheat out OF
the country so rapidly that one-third OF
the winter crop in the eight Central
and Southwest States may have been
Ynarketed. by the end Of this month.
If AZ does not materially increase the
vlsible supply the rank and fiie OF trad
e.rs NAV make up It's mind about taxing
the long side. Millers seem TO have
been awaiting the new rates before &C
circulating additional supplies which
might mean they are about ready 10
decrease market stocks, which steadily
have been growing heavier. Pubic ele-
water holdings at Kansas CITY are ~
= new record total of nearly 33,0OO,OO0
bushels. but storage interests and ship
pers have been active and demand was
suficient to absorb most current OF
ferings.
European wheat.
The outturn of wheat In Europe still
a uncertain, but foreign buyers nat
urally are standing by for keener com
uetition between Russia and the West
ern Hemisphere. Both Russia and Ar
Eentina shipped around 100000 Dusn-
els last week, each reported trying 70
press wheat on the market az prices
lower than those quoted from other
exporting countries.
THE heat wave Is being played to
The limit to start an upturn IN Decem-
Ser corn. The crop needs rain IN the
western part Of the belt. but prospects
generally continue favorable. The bears
inok At the good spots east Of the Mis-
risgfupt River, while the bulls take
ropnfort In reports that corn Is curling
and firing In South Dakota and North
Both the supply and demand are
small IN cash corn, but some believe
that II premiums for July corn drained
the country of surplus stocks without
creating hurdens0nle supply At termi-
mails, receipts during August may be
y, Email that industrial requirements
NAV absorb accommodations. Only con-
tract grades followed the upturn IN
July futures when Chicago shorts were
unable to md enough corn TO MI their
contracts. Subcontract grades declined
somewhat on almost all markets.