Evening star., 1937-09-17
SEPTEMBER CORN
HITS NEW PEAK
Skyrockets Almost 7 Cents
a BusheI as Spectators
Seek to Cover.
BY the Associated Press.

0CCN W OUtCls
BY the Associated Press.
CHICAGO, September l7.-septem-
Der corn skyrocketed almost cents
a bushel today as the deadlock be-
tween opposing speculative interests in
the grain market frightened.
While Board of Trade and COM
modify exchange of1cials probed re-
cent dealings in the corn market for
evidences Of price manipulation,
shorts" or previous sellers of Septem-
Der contracts were squeezed" again as
the price vaNlted to sl16% a bushel.
This price was a new high on the
crop, 1t would indicate that all traders
who previously sold September corn
at present face paper" loss.
At the same time. there was no in
dication Of loosening of the grip by
which long interests dominated the
market because Of the scarcity of corn
for delivery. Board of Trade officials
and Government agents we're reported
negotiating with speculative interests
IN the pits for compromise, but the
swift upturn today was interpreted by
pit brokers as pointing out that an
lmpasse had been reached.
Situation Is Explained.
The situation in September corn
was variously described a squeeze"
and technical corner" or natural
corner" However, traders were quick
TO point out there are times when a
squeeze" Is not q squeeze" and a
corner" Is not q corner" In other
words, they said, q trader who has
sold commodity short and must OBJ
tain it to make good on his contract
or must buy his contract back in the
pit Is not squeezed" until he actually
completes the transaction.
In the past few years attempted
"squeezes" have almost invariably col
lapsed here.
Late in July sudden disclosure of
hidden" stocks of corn here brought
about q precipitate drop IN this con-
nection, traders pointed out the same
interests reported involved then might
be tangled once more. Some pit Cos
sip described the current situation as
. "grudge" fight.
General Trading Light.
Typical of corner" or "soueezed'
market, action in the corn pit was
drab today. Crowded galleries looked
on with disappointment. General
trading was light.
The Board Of Trade was reported
to be making every effort to ease the
corn situation. Of1cials were in ses-
sion IN room just Oh the exchange
floor. Already they had doubled
margin requirements for September
corn trades and have asked for COM
plete reports from all interests holding
the contracts.
That their efforts were not entirely
unsuccessful was limited by the fact
that the volume Of outstanding con-
tracts IN September corn was reduced
l,772,000 bushels yesterday. This could
mean that many shorts" had quit the
market. Outstanding interest at the
opening today involved 13,i42.0oo
bushels.
The Squeeze" in corn arose from
the shortage, of grain as a result Of
last years small crop. Shorts" Who
had sold corn the past few months
and who now found themselves In a
tight position based those sales on the
belief that demand for old corn would
relax with the promise Of huge 1887
crop.
Scour Nation for Corn.
Spectators in the Chicago corn pit.
plnched in the current ATTEMPTED
squeeze" on September corn, were
securing the Nation for grain suitable
Tor delivery on the contracts they al
ready have sold.
Ihe search was for old corn. Ele-
vator men, professors and farmers with
1886 corn in their bins found them
serves IN possession Of q commodity
which was in great demand in Chi
cago. but which was expected to de-
preciate sharply in value after the new
corn crop becomes available and trad
ing IN the September contract expires
on the Board Of Trade.
Price Up 50 Cents.
The squeeze" in September corn.
which has raised the value of that
contract almost so cents a bushel
higher than the value OF new corn. has
attracted large volume OF offerings.
buylng OF corn as far away as Texas
and Oklahoma for shipment to Chicago
was reaported, but the volume of this
business was limited because Of the cost
Of transportation.
Considerable new corn was reported
being dried for shipment to Chicago
to arrive the latter part of the month.
An elevator operator at Springfield.
Ohio, was understood to be driving
Z 900 bushels daily.
Exchange officials have warned
members they face possible expulsion
II they fail to make good on contracts
to deliver corn this month. Efforts
by shorts" to buy September corn
puShpd rrices < capte q h,.h~r tt~L..