Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-11
TRADE MAY BLOCK J
REICH GRAIN SALE
German Plan Seen to Market
Own Wheat Abroad and
Buy for Domestic Use.
BY FRANK I. WELLER.
Associated Press Farm EaItny

Germanys offer to take % 900 600
bushels OF wheat from the Grain Stabt-
ifzation Corporation may meet the same
resistance from the trade that greeted
her proposal to buy cotton on long-tern1
credits.
1t is apparent that with high tariffs
to protect native farmers the repuh-
lie does not intend to use American
wheat in competition with the home
product. Obviously the idea is to sell
the German crop. probably to Scandi-
navian countries. for cash that Is badly
needed and buy enough American grain
TO tide the country over to the next
crop on long time credits
That would mean. as in the case Of
cotton, that Germany would use the
American product In trade competition
with American producers, although IL
did reduce American Sterilization
stocks. which are said to bear down the
domestic market
Mere Active Demand.
Domestic grain markets have strength
ened under improved demand and light
| er offerings. Record low prices estab-
lished for wheat early last week brought
out more active demand from both
domestic and foreign buyers. This, to-
gether with the reduced country mar
ketines Of Winter wheat, reports Of
further damage to Spring wheat In
this country and Canada, and larger
takings by importing countries-partie-
ularly the Orient, which is credited
with almost 1000, 900 bUshels-gave the
market a firner tone and cash prices
advanced TO 5 cents at most points
Winter wheat markets strengthened
materially toward the last Of the week
when the expected increase in market
ings as a result of decreased freight
rates failed to materialize Receipts at
the principal Central and Southwestern
markets totaled only s.47I cars, com
pared with 1924 last week and l0,ssl
a year ago.
Mills became more active BUYERS a
offerings decreased and premiums were
advanced to cents bushel on most
grades and classes of wheat.
Acreage Is Problem.
Heat and dry weather has caused
severe damage to the Canadian crop
and no general improvement IN the
prospects has taken place in the last 20
days. Outstanding loss is the result
of acreage cut for feed or plowed under.
In Saskatchewan, where drought dam
! age is most severe. reports Of abandon
| ment from So points range from rs to
50 per cent
Granting that supplies OF wheat are
heavy throughout the world, the price
level at present seems to Justify more
attention being paid the probable en-
| forced reduction in acreage which this
will bring. There has been investment
buying in the May delivery as evidence
Of broadening outside speculative In
terest Larger commission houses have
been excellent buyers Of wheat around
| 481l cents.
No living person has seen such low
prices on wheat While it sold almost
as low before 1894, freight rates were
! very much less than they are now
which means the amount paid the
| farmer is without precedent in every
| respect.
The chief depressing influence is ths
lack Of export demand. which finally
may cause heavy congestion and great
| sacrifices. That speculation is unusual.
| " low Is evidenced by the fact that
| sales on one of the best days last week
totaled only 29. $4,000 bushels. compared
with 12o.0O0,O00 bushels for the same
| day year ago.