The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-02
RECORD LOWS
HIT BY GRAINS
IN PAST YEAR
Failure of Export Demand
Sends Prices to New
Bottom Levels.
BY HAROLD E. RAINVILLE
United Press STAFF Correspondent

CHICAGO, Jan. 1.-THE failure
of an export demand to absorb the
surplus wheat supplies of the United
States, while drawing on other
surplus producing countries, re-
suited in steady decline in prices
to new all-time record low levels on
the Board of Trade in 1881 with
prices not stopping until well below
the cost of production.
During the first five months of
the year, the attempt of the farm
board to stabilize March and May
wheat kept prices at an artificial
level. Toward the last of May the
long downswing that began in
grains in mid-1929 was actually
turned upward. May wheat sold at
84Ac per bushel, the highest price
of the year.
However, the farm board found
itself unable to continue this policy
indefinitely in the face of ever
growing supplies and thereafter the
decline was rapid.
In the meantime, the government
support had thrown American prices
out of line with world prices, and
the year closed with the parity still
disjointed.
Supplies Too Large
The outstanding feature of the
grain trade has been the stupend-
Gus supplies. The worlds wheat
carryover at the end of the 1930-31
crop year was estimated by the de-
partment of agriculture as 79,000,-
600 bushels against 578,000,000 bush
els in 1880. These figures do not
include Russia.
The world wheat crop for 1881,
again without Russia, is estimated
at 1922, 930,600 bushels against
3,142, 900 in 1880.
The world war with its vast in
crease in acreage in the leading ex-
porting countries which followed it,
combined with political interference
with the laws of supply and demand
have brought about this situation.
Despite campaign by the farm
board to restrict acreage in the
United States, the small drop in
acreage was attributed more to the
effects Of the drought than efforts
of the producer.
Corn Squeeze Worked
The feature of the corn year
was an 18 cents advance in July
corn in the last two weeks of that
month when Thomas Howell worked
q squeeze and controlled practically
the entire visible supply. At the
close on July 81, July corn sold at
1917 cents per bushel, 221s cents
over the September delivery of that
grain and 249s cents above July
wheat.
The country produced a corn crop
in 1881 of 2,556,863,0O0 bushels,
compared to 2,O6O $4,000 in the
drought year of 1890. The value of
corn fell from $1,349, $4,000 in 1880
to 1920, $4,000 this year.
Toward the close Of the year the
trade was surprised to find that
the northwest was drawing on Chi
cago for it's corn supplies and sales
were made in northern Wisconsin
and Duluth.
Prospects Favorable
Due to the lowness of prices as
the year closed, the prospects for
higher prices in 1882 were favor
able. The winter wheat crop in
the United States was 38682,OOO
acres, a 1915 per cent reduction from
the 3,149,000 acres of 1880.
The condition of 1874 per cent was
the lowest with three exceptions
since 1870. Argentina and Australia
reported acreage cuts ranging from
10 to 30 per cent. European plant
ing has been slightly larger while
Russia continues to be a question
mark.
Coincident with the decline in
prices was the sharp drop in trade.
The average trade in wheat for a
single session is estimated at 65,-
100000 bushels. During 1881 the
trading fell to less than half this
total and low of 100000 bushels
for all grains was set in March, with
the best day Nov. 5 when 109,872,O0O
bushels of wheat changed hands.