Evening star., 1936-12-31
WHEAT SUPPLIES
AT 10-yEAR LOW
Short Harvests and War
Scare Send Quotations
Steadily Higher.
BY JOHN p. BOUGHAN,
Associated Press Market Editor.

CHICAGO, December 31.-With
grain harvests of the world below nor
NAL and war-worried nations hoard
ing every available bushel Of cereal,
prices of the principal grains pushed
steadily higher throughout 1896.
The worlds supply of many cereals
dropped to record low levels. Wheat
stocks, for example, were recently re-
ported shorter than at any time dur
ing the past decade.
Wheat, corn, oats and rye quota
tions swept to the highest point since
early 1929 as the year closed, de-
mand from every section Of the globe
contributing to the upturn.
Farmers Profit.
Robert p. Boylan. president of the
Chicago Board of Trade, said that
farmers received the major portion Of
the higher price level.
Although a disastrous visitation Of
drought over large areas of normally
productive farm lands" Boylan states.
"again reduced yields of several cereal
crops to a severe extent, increased
prices have made up for this to a
large degree. Improved general busi-
ness and the expansion of buying
power resulted in fair prices for farm
products during the early months of
1886. And drought damage later stim-
ulated activity both in futures and in
cash grain.
"A notable feature of the year is
the fact that in all grains and at
all times the cash markets have domi-
mated the situation rather than any
speculative activity. Regardless of
substantial advances in futures con-
tracts, the cash markets have kept
ahead.
Highest prices. for all grain fu-
lures were registered late in the year,
the general average reaching top levels
since 1888. the main incentive being
the persistent absorption of cash grain
at material premiums over futures"
Marked Change Over Past.
President Boylan especially points
out that the grain markets of Chicago
and the country have functioned
smoothly so far under the commodity
exchange act, which became operative
the middle Of September. There has
been an absence in 1885," he says. "of
spectacular market tactics, which in
other years and under conditions SINH
lar to those which developed this year
because of drought damage would un-
doubtedly have caused violent price
fluctuations, disturbing to market
equilibrium.
I'm the wheat trade, there has
been a marked change from condi-
tions prevalent for the past several
years. As the result of small crops in
some Of the important producing ma
tions for two or three years, the tre-
mendous surplus that hung over world
markets has been reduced to a point
of the closest adjustment of supply
and demand since 1861"
Losses in Corn and Oats.
Heaviest crop losses of 1886, as out
lined by President Boylan, were in
corn, oats and barley. The corn
crop was estimated at 1,527 ,000, 900
bushels, compared to 2,292,000, 900
bushels in 1885; oats made yield of
784 100000 bushels, a reduction from
1885 Of 413,000,000 bushels. The pro-
duction of barley was cut from 2s2,-
100000 bushels in 1885 to $4,000, 900
bushels this year.
Despite heavy losses in the north.
west-Spring wheat yield being only
108, 100000 bushels compared to 159,-
100000 bushels last year-the total
1886 United States wheat crop was
627, 100000 bushels. or about 4,000,-
900 bushels more than in 1885.
High and low prices for 1886 grain
futures were: Wheat $1.36H and IS
cents, corn $110% and 52K cents,
oats 52h and 265s, rye $1.161s and
54K.
A conspicuous 1886 development,
which President Boylan says promises
to result in increasing benefit to
farmers, was the establishment on
the Chicago Board of Trade Of the
worlds only futures market for soy
beans.