Evening star., 1933-10-09
GRAINS EXPECTED
TO MOVE HIGHER
Some Traders Believe Pa.
tient Buyers Will Benefit
From Decline.
BY FRANK I. WELLER,
Associated Press Farm Editor.

Some In the trade have refused to
accept the nervous advance In grains
at the close Of the last marketing
period as rejecting the full effect OF
Federal approval for subsidized Pacific
Coast exports and creation OF the FED
eral Surplus Relief Corporation.
Wheat moved up A-l2 cent bushel
at Chicago while corn advanced 9s- 70
cent above the previous day, but COM
pared with a week earlier the bread
grain was down about cents on the
December delivery and the yellow cereal
was of 6 to cents a bushel.
Recapitulation shows wheat now
about IS cents under July levels. corn
81 cents and oats, 16 cents. Rye, on
A cents, has led the downward pro-
cession. Corn prices have lost the
gains made in recent months and are
back at May quotations.
The weakness in rye was ascribed to
pressure developing on estimates that
2,500,00O bushels of foreign rye have
been purchased to date for importation
into the United States. HeavinesS in
corn reflected continued pressure OF
country offerings. Wheat was under
the influence of weakness in corn and
rye and selling developed for the ac-
count OF eastern houses.
Expect Uptsn.
Those who disagree with the trend
Of the market say there has been no
late evidence of decided or lasting weak
ness in wheat nor do supply figures
necessarily indicate burden. For that
reason they believe patient buyers may
find advantage in prices so greatly de-
preciated since July.
Progress already made toward re-
Mobilization and better times. they sug-
gest. does not warrant pessimism. They
expect subsidized exports and Federal
purchase of food for the needy to take
considerable strain off the market, not
ing that Chinese mills in Shanghai and
Tientsin are showing more active in
terest in foreign wheats.
1t Is their idea that lack of sustained
buying rather than insistent pressure
has prevented any definite advance.
The Government market news service
reported only $50 cars of Winter wheat
arriving at the principal markets last
week compared with 2,l6l cars for the
same period a year ago. No. hard
ordinary protein sold for 82l2a84 cents
a bushel at Kansas City whereas Chi
cago paid but 861 .a86la for the De-
cember future.
Demand Stimulated.
One of the larger operators said it
seemed the break in wheat was cauS-
ing some increase in -four buying and
that current prices for corn and oats
were stimulating better consumptive
demand. While continued country Of
ferings of corn indicated serious de-
mand for cash it was said that if pro-
ducers start holding, such as the price
level warrants, the market should do
better because of the increased demand
for merchantable corn.
Another operator said he did not see
anything particular in the news to ac-
count for weakness in wheat although
it might require marked improvement
in consumptive demand to bring back
investment buying While the trade ex-
cuses general apathy as the natural
product of an unannounced monetary
policy by the administration its atten-
ton has been called to increased for
eign purchase of American dollars or
the belief there is to be no outright
initiation of currency.
The fact that Chicago prices are
about 80 cents above Winnipeg. how
ever, precludes export competition.