Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-03
CORN CONSUMPT|
ON LARGER SCALE
Decrease in Supplies De-
CIared Due to Increased
Feeding to Live Stock.
BY FRANK /. WELLER,
Associated Press Farm Editor.


If logical argument could mean any
thing in the grain market again. some
traders would look for a major advance
in corn prices.
The Department of Agriculture says
that farm consumption of the yellow
cereal has been unusually heavy this
Winter, as evidenced by the fact that
hogs at Chicago last week averaged is
pounds more weight than a year ago.
Stocks of corn are. light, the crop is
the smallest since 1901 and prices are
the lowest since 1922. The break last
week that established a new low on the
crop was the result of corn coming from
all quarters, indicating farm liquidation
now that a mild Winter has reduced
feeding.
In that light it would seem a ques-
ton of only few weeks or months at
the most until the demand for corn will
outstrip the supply.
Reaction Believed Overdue.
Although corn may have been due
for drop on the theory that it has
been selling we'll above a parity with
other feed grains, some hold the market
to be oversold and a reaction long over
due. Shorts were very apparently nerv-
Gus when commission house buying OF
corn pulled prices up from the bottom
last week About all they have to back
their bet that corn will go lower is the
poor commercial demand. Many of
them already have, begun to cover.
The disturbing thing is that corn
sells off whenever wheat stops advanc-
ing. Buying has been mostly in the
way of covering on the way down, which
&c Eo
ing power appears corn will sag lower.
An immense international trade in
coarse grains is under way, but United
States prices are too high for American
participation. Some 100000 bushels
of corn, oats and barley were put afloat
by exporting countries last week, or
about double the amount for the same
time last year. However, corn was
quoted at Buenos Aires fer February de-
livery at 20 cents and oats at Is cents,
Included in the Argentine exports was
$4,000 bushels to the United States and
10000 bushels to Canada.
This is the time of the year when
farmers want to sell their grain and
further liquidation might keep prices
down. Or holding program, as indi-
Gated in Iowa, might make the short
crop felt and start a bull movement
within go days.
Unfavorable weather conditions for
the Winter crop is about the only break
wheat is getting. The rural Middle
West is CRYING for moisture, the dry
weather extending northward into the
southern half of the prairies. The Sit
uation is expected to bring about some
short covering and less short selling,
but is not considered much of a market
factor yet since rain or snow within
the next 60 days could entirely change
the outlook.
Freer Market Seen.
Starting yesterday, trade opened in
September futures. The Farm Board is
not now interested in the September
position and spectators anticipated
freer market than they have had for
some time. They expect the United
States, sooner or later, to get back into
the export column, which apparently
would mean lower prices unless world
levels rise.
The estimated Canadian surplus of
300, 100000 bushels. together with the
Argentine and Australian SURPRISES, is
believed to be sufficient to satisfy the
bulk of European import demands for
the rest of the season. There has been
an increase of 1000 bushels in the
American Visible supply this year as
against a decrease of 1885, 900 bushels
last year. Total stocks are said to be
80 100000 bushels heavier than year
ago.
There is a bullish sentiment in the
way India is buying Australian wheat
and the way eX-European countries
are taking supplies. 1t hardly can be of
permanent benefit since Argentina has
shipped only about 100000 bushels
of some 100,0000 900 available for export
and which is expected to start moving
heavily almost any time.
Reports are in circulation that Can
ada may be able to sell several million
bushels Of wheat to Italy, which took
more than 100000 bushels in 1928.
The British government is said to be
bill ordering quota of ma
tive and British Empire wheat in all
British millers' grists.