Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-03
BOARD PLANS SALE
:. OF SURPLUS WHEAT
Legge Will Try to Dispose of
100000 Bushels to
Foreign Buyers.
BY FRANK 1. WELLER,
Associated Press Farm Editor.

With the trade pretty well recovered
from the idea that the Farm Board Is
going to let loose Niagara of wheat,
the grain market seems to have settled
down to weather watching again.
Likely crop news will be the most
important price factor for the present.
The condition of Winter wheat con-
tinues good to excellent throughout the
greater part of the country and there
Is little indication that the abandoned
acreage will be more than nominal. 1t
probably will be well below the 10-year
average of III per cent. The seeding
of Spring wheat is getting under way
in both the American and Canadian
Northwest.
Legge's Statement.
Chairman Legge's statement that the
Grain Sterilization Corporation did not
intend to dump wheat abroad was well
coined as a liquidation damper, and
some expect to see fair rallies in both
wheat and corn. The latter, reacting
sympathetically to wheat, made a new
low for the season during the last mar
keting period.
The corporation is going to try to sell
$4,000, 900 bushels of wheat within the
next four months to foreign customers
in the hope that it may be able to clear
out some of the export terminal storage
space by the time stocks begin to arrive
from the new harvest. Legge says this
wheat is in an awkward position for
sale to domestic millers. The corpora
ton is going to sell it at prevailing
world prices.
There is report in the grain trade
that the corporation has taken from 10
to l11k cents under May I. o. b. prices
at Antwerp. Some seem to believe that
if Liverpool prices do not decline fur
Their, the corporation will have to take
20 cents under Chicago May or fail to
find a market. ANY wholesale price
slash, 1t is believed, would start price
war that Canada, Argentina, Australia
and even Russia might join.
It is considered unlikely by those
close to the situation, however, that the
corporation would offer wheat in ex-
port markets below prevailing prices.
Murray Praises Action.
President James c. Murray of the
Chicago Board of Trade says the action
of the corporation in proceeding TO
move the seaboard stocks is commend
able and that 1t probably will prevent
congestion later.
While influences adverse to normal
world wheat export situation seems 70
multiply, price levels are such that
drastic decline in world wheat prices.
Locally, the frank statement of policy
by the Grain Sterilization Corporation
might serve to settle the uncertainty
created by recent rumors that the Farm
Board intended to get rid Of its wheat.
Meanwhile 1t appears that importing
countries are in an Independent po-
sition in obtaining supplies of wheat.
With the new crop making excellent
progress. there undoubtedly is a oearsh
sentiment The answer must De
broader consumptive demand If the en-
tire category of grain prices is TO be
advanced.
Southern Hemisphere shipments last
week totaled 100 900 bushels more than
the week before Since July United
States shipments have fallen of a.
600. GOO bushels as compared with
year ago.
Corn Market.
The corn market is being influenced
by the Developments in wheat, but there
is no disposition to press sales on dips,
since an improvement in cash demand
Is expected. There also is an inclination
to await the private report Of farm
reserves. which will be issued today
It Is intimated that March farm re-
serves of corn will run around 100000
600 bushels, as compared with 9oO,OuO,-
600 bushels last year. Pit observers say
better support of the yellow cereal IS
in evidence for July and September con-
tracts.
Continued mild weather has further
reduced feed requirements in the corn
belt and also has enabled feeders in
Southern consuming areas to subsu-
tute local forage for corn. Low prices
of dairy and poultry products have dis
couraged feeding for heavy production
and have been further weakening in
fiuence in the corn market.