Evening star., 1932-12-19
j. 5. GRAIN REPORT
HITS SPECTATORS
Traders Who Blamed Gov.
ernment for Low Prices
Held on "Short" Side.
Special Dispatch to The Star

Special Dispatch to The Star.
CHICAGO, December 19.-Grain
traders, who have been attributing low
interference with the free operation Of
speculative markets, find themselves
placed somewhat on the defensive by
the annual report of the grain futures
administration
This regulatory unit Of the Depart
ment Of Agriculture. which keeps an
eye on grain exchanges, has been under
sharp fire during recent years. Arthur
Cutten. prominent Spectator, has been
outspokan in criticisms of its function
ing and other large traders have aimed
their shafts in its direction.
Only recently, largely as a result of
criticism in the trade, restrictions over
private transactions involving more
than 500 coo bushels in a single future
daily. have been removed Since then,
however. markets have continued to
sink, rather than advancing, under the
Tree play OF speculative demand.
Now the Grain Futures Commission.
analyZing the past years trading. finds
that the big traders sold the market
short more heavily than they supported
It with purchases.
Holdings Are Studied.
Said the commission report During
the year just ended, as in the preceding
year, the large speculative traders oper-
ated principally upon the short side of
the wheat market A study of the hold
ings and commitments Of the large
spectators in Chicago wheat futures
during the period from July l, 1881, to
March 81, 1882, disclosed that these
large spectators, considered as a group
maintained an average net position of
3432,000 bushels short during the en-
tire 223-day trading period. On only
80 of the 223 days was the large specu-
lative group net long. and the largest
net long position on any one day ag-
gregated but 3,175,00O bushels. con-
trasted with q maximum net short posi-
ton of II .06O.OOO bushels
The Grain Futures Administration
has said that the effect of the short
selling by a few large traders was Illus
trated by their operation in May wheat
during March, 1882, when the May
future fell lOl, cents a bushel from
high of g. :, cents on March to low
OF 50 cents on March %.
Large Long Accounts.
THE records disclosed" the commits
sion asserted, that near the close OF
February the net position of the large
speculative accounts was virtually off,
set by the large speculative long ac-
counts. In March, however, the short
sellers became more active and the
large specu .ative accounts reached
maximum. for the month. of 395o,00O
bushels, net short There were eight
speculative accounts each of which at
some time during March had net open
commitments IN excess o. 100000
bushels and with one exception, all o,
these were short accounts"
However. even with this situation
existing, United States wheat prices
during thai period, and since. have re-
manned far above the world level, So
that Spectators could hardly be blamed
in this ccun ~ fer tie world decline
The Grain Futures Administration points
Oug /. is report thot tie American
pr.ce av-r1g, Z about 13 cents above its
usua! relationship with liverpool
I'ha ana sis OF thc Government
agency ce-r,s to bear out what the
trs e 3.12a... hat spectators Will seek
tho side C the market that promises
them most r'cfit. and are not neces-
sariiv Gltryi i-ticallv :n-lined. some
OF them would have i.
Copyright, 1922