Evening star., 1932-06-07
TECHNICAL WHEAT
RALLY LOOKED FOR
Sharp Decline Of Last Week
May Bring Buying Into
Market.
BY FRANK I. WELLER,

Barring resumption Of the heavy
liquidation which swept wheat this past
week cents below recent best prices
technical rally would seem probable.
Some Of the active sellers were on the
buying side on the break and with q
good class Of commission house and pro-
fesslonaf absorption the market hrmed
at to 4 cents under . week ago. Both
foreign and domestic consumptive trade
seemed to take advantage of the decline
to purchase supplies.
Uncertainty regarding the protein and
quality Of the new crop Is stimulating
inquiry for good milling wheat and mills
and elevators at Kansas City are accu-
mulating stocks at q time they usually
are allowed to run low. The first car
OF new wheat shipped from Oklahoma
was reported to be good, but Of high
moisture content.
Active Market Possible.
Some look for an active trading mar
ket pending the Governments June
crop estimate now that higher private
estimates than expected have been
pretty well discounted Their aggregate
OF 686, 100000 bushels of Winter and
Spring wheat started the market down
and longs went out Of their holdings on
the decline, exhibiting complete lack OF
confidence in all values.
For time the stronger world posi-
tlon seemed to be entirely ignored.
Although stocks in North America at
mid-May were about 100000 BUSH
els greater than a year ago, Southern
Hemisphere holdings showed reduc-
ton Of around $4,000 900 bushels. The
new crop Of domestic hard red Winter
wheat Is estimated at less than half
that Of last year and 1t is this grain
which comprises the chief wheat ex-
ports of the United States. Southern
Hemisphere exports for the week were
placed at 6,01e000 bushels, compared
With 8.384,000 last year. and closing
Argentine cables indicated offerings
there would tighten and divert the de-
mand to North America. Russian ship
ments again were NIL.
Prospects for domestic Winter wheat
we're not materially improved by recent
der way in Texas and Oklahoma and
the crop Is beginning to ripen In
Southern Kansas. It was reported
from Dodge City, Kan. that all the
predominantly combine territory Of
Kansas, Oklahoma and Texas will
fnd thousands Of machines which
never will enter the harvest field and
that the usual flood OF wheat on the
early June market will be . mere
trickle.
There is good foundation In that sit.
uation for . moderate upturn and
should anything happen to the Spring
wheat crop within the next 80 days
there might be q decided change IN
speculative sentiment The private trade
forecasts q Spring wheat crop Of around
$50 900 900 bushels, nearly $50 o.0oO. .000
above last seasons short harvest. and
growing grain throughout the Northwest
Is said to be in better condition than at
any corresponding time in many years
Canadian Prospect
Canadian Spring wheat has made
good progress, but the grasshopper men,
ace is serious in Manitoba and soil
drifting has been widespread In Sas-
katchewan. General rains are needed
to offset relatively low moisture reserves
It is the prospective huge carryover
Of United States wheat, now promising
to outdo anything in history. that be-
I fuddles the trade 1t is expected to run
around 40 ,000,000 bushels when the
new crop export surplus Is added. Most
OF 1t will fall on the trade for, whereas
the Government carried 254 900 00t
bushels Of the surplus last year 1t will
have less than 100000 bushels by
july !.