Evening star., 1936-06-30
SLUMP RECORDED
by COMMODITIES
WITH A. A. A. GONE
Drought Conditions Bring
Upward Swing Late in
Half Year.
BY A. A. PATTON,
ASSOCIATED Press Statistician)

| ASSOCIATED Press Statistician)
NEW YORK. June 30.-The hover
ing threat of increased supplies bore
down on commodity prices in the first
half of 1886.
When A. A. A. was supreme-courted
out of existence, removing a prop
| from farm prices, the logical market
reaction was a drop in quotations.
The inevitable tendency in that direc-
| ton was postponed, however. by
shortages in some staples resulting
from transportation snarls through
out the snow-bound Middle West
bringing sharply higher prices in mid
| February.
Reaction Comes Late.
The Associated Press weighted in
dex of wholesale commodity prices
reached a peak of 1917 on February
IA, more than 80 days after the A. A
A. overturn. Largest gamers during
the period were eggs, coffee. rubber
hogs, rye, steel scrap and lumber.
Curtailed production of the Ma
tions major staples under Federal
control in 1885 stimulated prices.
With the brakes released by the Su-
preme Court, the high levels then
existing led producers to plan larger
| outputs for 1886.
These impending supplies resulted
in a steady chipping away at val
ues during the next three months,
driving the Associated Press index
to .3l-the low for the year to date
almost 8 per cent under the years
high.
Drought Buoys Market.
Prices stabilized from May IL to
June Is, the index swinging between
71.98 and 71.31.
Drought conditions prevailing over
large sections of the country finally
acted to buoy quotations. the index
breaking out of its narrow range and
crossing the 70 mark June 16.
The extent of the rainfall deficiency
this year Is indicated by the fact
that Texas, Iowa, Illinois. Minnesota,
Ohio. Nebraska, Wisconsin and In
diana-largest farm income producers
in the Middle West-all had sub
normal rains.
Non-ferrous metals constituted
the only group in the index able to
chalk up gain during the first six
months. Live stock price indices de-
clined 13 per cent; food, II; textiles,
10; agricultural,9, and industrial, 2.
Cattle Prices Off.
Cattle prices slumped more than
one-third during the half. Underlying
the setback was cheap corn for food
in 1885 and the resultant large crop
of good quality beef that has moved
to market this year.
Wheat quotations were slashed dur
ing the period. Larger paintings and
better Winter wheat yield outlook
foreshadowed a crop considerably
above normal requirements this year.
The serious moisture shortage in the
Dakotas - largest Spring wheat
States-has acted to turn wheat prices
up in the past 30 days, although this
crop normally accounts for less than
20 per cent of total wheat harvest.
Other percentage declines included:
Turpentine, down %; hides, II; -four,
20; butter, 16; eggs, IS; silk, 18, and
lard, IL.
Cotton cloth slipped back 16 per
cent with large mill stocks and no
apparent let-up in production sched-
ules responsible.
Scrap Steel Scars.
Steel scrap prices rose to the high
est level in six years during March,
with steel mills booming. Quota
tions have been giving ground steadily
for three months, however.
Also in the losing column were tin,
oats, cotton, cement, bituminous coal,
inseed oil and burlap.
Five of the seven commodities reg
istering largest advances for the pc
riod are imported-cocoa, sugar, rub
Der, antimony and coffee. The prac-
tical reason in each instance is that
the producing countries have taken
a f1rmer grip on output than pre-
viously.
Other commodities showing i'm
provement were petroleum, lumber,
rayon. wood, eggs, lamb, rye and
corn.