Evening star., 1932-06-27
WHEAT PIT LOOKS
FOR TURNING POINT
Present Quotations at Chi
cago Are Considered in
Investment Zone.
BY FRANK l. WELLER.


The late upturn which carried wheat
around li9 cents above the weeks new
lows for the season apparently was
prcdcated on the graSShopper menace
in Canada and black rust talk in the
American Northwest.
Developments in Spring wheat which
still is to pass through the critical
stage seem to be the principal price
making factors for the immediate
future.
Turning Point.
Considered an investment under 50
cents a bushel. wheat usually finds that
price the turning point. Saturdays
close at Chicago was AIS to 48 cents
for July contracts. One important
operator told the pit crowd that con-
sidering the steady decline in open
interest it must be drunk" to sell in
the forties, particularly with the mar
ket in a technical position to respond
to tangible doubts about the Spring
wheat outcome
He backed his opinion with substan-
tial purchases. His actions usually
attract a considerable following
Although there are about 10 black
rust scares to each year of actual dam
age the next six weeks will be an open
definitely identified at Redfield, S. Oak,
and reported from Nome, N. Oak.
While early symptoms have not shown
IN Spring wheat until the forepart OF
July in most past seasons the crop Is
fully 10 days ahead this year.
The sections in which 1t is expected
to spread include Western Minnesota,
South Dakota east of the Missouri
River, all except southwestern portion
of North Dakota, Manitoba and most
of Saskatchewan. Weather conditions
will determine the amount of damage.
Spring wheat continued to make
rapid growth during the week, heads
appearing in parts of South Dakota
and Minnesota where crops of Is
bushels to the acre were forecast.
Average yields are still in prospect for
Canada although. as in the Red River
Valley. grasshoppers are causing dam
age in Manitoba and Saskatchewan.
Losses up to 80 per cent have been
caused by cutworms in important
Canadian areas.
Harvesting of Winter wheat has ad-
vanced well into the Ohio Valley and
into western areas Of the Missouri
River The movement to market has
been slow because wet weather forced
most cutting to be done with binders.
So far Southwestern mills have been
able to absorb the new crop, but If
combines get into the fields by July 5.
as anticipated, a larger movement to
market is expected.
Foreign observers feel that Europe
can no longer be independent of North
American values with Southern Hemis-
phere shipments declining. Argentine
exports for the week were about l,000,-
900 bushels under last year and Rus
sian exports nil
However, nearby wheat is plentiful.
Large shipments can be obtained in two
weeks time. and as long as Canada is
underselling the United States it may
be hard to convince foreigners their
price is 10 cents too low. Even Argen-
tine wheat is S cents over Kansas City,
the widest spread yet. New American
wheat is running to gulf ports and
Black Sea shippers are scheduled to re-
sumo within a month.
Dry weather in North America or a
wet harvest in Europe are about the
only hope of improved world prices in
the next two months.
Yields in Italy are generally satisfac-
tory; France expects a crop equal to
domestic requirements Spain has an
estimated increase of about 27oo0 900
bushels over last year. and Germany
about $4,000 900 bushels.