Evening star., 1939-06-23
Prospects for Can
Makers Frightened
By Sales Gains
Surplus Of Vegetables
Reduced by Pickup
In Shipments
Ry ]. G. DONLEY.

Released by Consolidated News Features) }
NEW YORK, June 23.-The out
look for the can-making companies
has recently frightened notably, for
two main reasons. In the first place,
much more progress than was
anticipated has been made in reduc-
ing the large surpluses of canned
vegetables from previous crops. Sec
ondly. this years acreage reduc-
tions in crops under contract to
the Gamers have exceeded earlier
expectations by considerable mar
gins in a number of cases.
AS an indication of the steady
reduction in carryover stocks, corn
furnished an interesting example.
The latest bulletin of the American
Institute of Food Distribution re-
ports that May shipments of canned
corn ran 56.5 per cent above the
month last year.
Movement of corn from Gamers
warehouses in May totaled l,594,872
cases-6.2 per cent of the supply
and a better gain over last year
than expected" says the bulletin.
Following a similar gain over ex-
pectations in April, and if those in
creases are maintained in June
and July, the carryover of corn
will be down to about 7,200, 900 cases,
or 100000 less than indicated
earlier"
Surplus Reduced.
The movement of canned peas
which had, the largest surplus of
any of the big vegetable packs-has
also been highly satisfactory. Pro-
motion and sales efforts of the
canned pea marketing cooperative
have been so effective that pea con-
sumption has risen to record total
in the last year, reaching an ag-
gregate of nearly 100000 cases.
And during the last year consump-
ton of string beans also has hung
up a new record.
AS to acreage of this years crops,
the institute says that "our running
sheets show corn acreage is down
80 to IS per cent from 1888, against
the Governments intention report
of 25.7 per cent early in April. To-
matoes are down slightly more than
the 1875 per cent Gamers reported to
the Government String beans have
reached a full 80 per cent, about in
line with earlier expectations. Acre
age on other crops has not been
expanded-the trend is in the other
direction, if there has been any
change from earlier plans"
Prices Improve.
The combined result of working
off stocks and reducing acreages for
the new season has been to stiffen
Gamers in their price ideas on prac-
tically all vegetables.
The average of all prices has
strengthened, aided by a well-sus-
tanned volume of buying for imme-
diate requirements and a little &C
cumulating where bargains can still
be found. In the final analysis, the
trend is toward a healthier market
all around, as compared with the
recent situation, where top-heavy
surpluses and doubt as to their dis
posal made everybody loath to buy,
The real benefit to the can
makers will not come until next
year, Of course, when adjustment of
surpluses to a more normal basis
will enable Gamers to step up pro-
duction. The leading makers will
see some reduction in their sales of
packers cans this year, but the re-
duction will be nothing to worry
about. Meanwhile, general line can
sales have been holding up very
well and may run about on a par
with 1898 in the aggregate for all
makers.
As an indication of the more sta
bilized situation, as compared with
the steady downtrend of 1888, one
of the large canmaking concerns
has recently shown an improving
trend in earnings. And the esti-
mate is made that it's income for the
first five months of this year will
run even with, or perhaps a little
better than, the like period last
year.