Evening star., 1932-07-21
Low WHEAT PRICE
MAY Be BENEFIT
Stimulation of Export, Liqui.
dation OF Futures. Seen
by Grain Traders.
Special Dispatch to The Star.

SPECIAL DiSpAtch TO Inc Star
CHICAGO, July 21-Although wheat
prices hover around the lowest level in
50 years Of Board of Trade history, this
fact, in the opinion Of grain men. is not
an urmitigated misfortune Tor two
reasons.
The first is that low prices, at time
when the Canadian government appears
to be pegging values at 56 cents for the
Octobsr delivery, should stimulate
so-ely needed export trade to clear
domestic channels now clogged with
wheat. The United States and Canada
this Fall will have a total of about
o0o0000o bushels Of surplus wheat
to offer in the world markets, according
to present estimates.
that. in trade judgment, much of the
recent selling, aside from hsdging
pressure, represented liquidation Of
wheat futures held by subsidiaries Of
the Federal Farm Board. These sub
sidieries are presumed to be hard
pressed for cash since Congress ordered
them to make available to the Red
Cross a total OF 85.000.000 bushels Of
wheat, without authorizing adequate
this liquidation, once completed, would
market.
Wheat. as customary. has been the
bad actor in the farm commodity set
UP this season. If it weren't for this
grain. there could be a measure OF
cheerfulnsss in agricultural sections.
As it is. however. wheat is being sold
in the country now for under 80 cents
a bushel. with a short crop IN the
Southwest aggravating the financial
troubles of the grain farm-r. This sit
uation is causing no end OF concern TO
politicians who must SEEK reelection in
the Fall Price troubles in grain. trade
authorities assert. are not to be solved
until export demand absorbs the huge
surplus stocks soon to be available.
1t is estimated that the United
States and Canada will hold a total
of 100, 100000 bushels Of wheat after
harvest this year. including the new
crop and the carrv-over Consumptive
requirements in the two countries are
under 7O00o000o bushels, leaving l.
O00O0O,OC0 bushels for export. This
grain must be offered in markets rig
ged against North America because Of
price stabilization schemes attempted
by both the United States and Canada
during the past few years.
That explains in part why asricul-
turists are turning to other commodi-
ties as likely leaders In any move out
of the depression in farm districts.
Cattle and hogs show disposition to
react from their upturn recently, but
this is regarded only as temporary
move owing to hot weather, which
has curtailed consumptive demand OF
the dressed product.
One enthusiastic statistician is out
with a statement that the upturn in
y-o1, Cd cd ~ ~
one billion dollars to the paper valu.
of the countrys beef cattle population
weight at 1000 pounds The increase
meant a 81 ,2oo, 100000 write-up. The
hog upturn, equalling S25oO0o000 like
wise meant real money for the corn
belt
Significance of the upturn in live
stock prices was greater than that in
grains because of the financing in
volved. Cattle paper long has been
favorite trade medium In the Middle
has meant hard cash for producers
as well es assurance to banks and
merchants that debts would be made
coed As matter Of fact the recent
rise in values assured many farm
mortgage holder-individual, bank and
insurance conlpany-that interest and
principal payments could be made this
year.
There is tangible reason for cheer
in the live stock producing areas and
the dairy areas. where butter prices
have advanced from l6 to 18 cents a
pound, with prospect Of more improve
ment. 1t is only in the wheat Sec
tions that something akin to despair
Is noted.
Copyright. 1922