Evening star., 1932-01-26
MARKET IN WHEAT
LACKS LEADERSHIP
Government Aid to Credit
May Result in Advance
of Prices.
BY FANK /. WELLER,
Associated Press Farm Editor.

The reaction in wheat is naturally
following the rapid advance of the last
few days, and there is indications that
stocks may be acquired again on any
further decline.
Some are not convinced that concen-
trated buving has ended for the time
being, because operators such as drove
prices up past 60 cents in the futures
market do not suddenly cease to buy.
On the other hand, the fundamental
conditions at home and abroad con-
tinue rather discouraging. There is W
absence of leadership in the domestic
market. the sentiment in wheat appar-
emily having undergone change as
result of the sizable accumulatlonS
during periods of weakness.
Failure of the Reconstruction Finance
CORPORATION measure in Congress to
boost values Immediately was blow TO
the trade, but there still is said to be
chance that Government aid to credit
will stimulate buying Of commodities
on weak spots The ease with which
wheat rallied in late sessions suggests
thai cnly moderate buying power may
b. necessary to bring about further
advances.
Crop Situation.
Some do not believe anything very
serious can happen to prices at around
current levels. now that the crops in
the Southern hemisphere are made and
their influence largely discounted and
since it will be a couple of months be-
fore much will be known about the
domestic Winter wheat crop.
Yet from an actual standpoint there
does not seem to be much to warrant
purchases, due to United States prices
being so far out of line for export.
Even winnipeg has been affected by
the lack of aggressive foreign. buying,
European demand continuing disap-
pointing and with only a small outlet
for ManitobaS.
Liverpool reports cheaper offerings OF
Argentine c. l. f., while there were ru-
mors of active chartering by Argentine
and Russian shippers. The latter are
and while it is problematical what COM
modify will be loaded in these vessels,
there is fear that much of it may be
wheat. With Argentina and Australia
constantly free sellers, it Is believed
it will require steady support from the
foreign markets to sustain the current
world price.
The italian announcement that the
foreign milling quota would be raised
materially on February l has been of
some influence in checking the domestic
down turn, as well as the 20 per cent
increase over last week in the takings
by American -four mills. On the dips
commission houses which were aggres-
sive buyers few days ago seem to have
buying orders again.
Nevertheless It seems that the Euro
pean situation overshadows everything
else so long as this country has so much
wheat for export 1t is said to be the
opinion in England that world values
of wheat are not likely to improve
until a sustained demand develops in
Central European countries and tariff
barriers are lowered. So long as Euro
pean n arkets continue to feel the pres
sure of Argentine and Australian wheat
they cannot be expected to become &C
tive buyers.
Foreign Markets.
There is some consolation in reports
that domestic markets in France and
italy already are firmer, with indica-
tons that millers are becoming inter-
eSted in wheat for forward delivery.
While the European crop last year was
"A per cent larger than year ago, the
total world production to date is esti-
mated at only CTS per cent Of last
years.
TIE corn market continues to disap-
point its friends, as all bulges run into
selling Of futures by spectators as well
as cash corn by country holders At
the same time cash houses report an
Indifference on the part of Eastern con-
sumers to anticipate their requirement
Some in the trade do not believe the
market is in position to withstand a
larger country movement without a cor
responding increase in the demand