Evening star., 1939-07-16
Argentina, Groaning
Under Grain Surplus,
Shuns World Pact,
Seeks to Salvage What
She Can by Selling
Wheat Abroad
BY HAROLD X. MILKS,

Associated Press Foreign Correspondent
BUENOS AIRES, July 15.-Ar-
gentina, her grain storages and her
national treasury groaning alike un-
der the strain of 5000 0OO-ton
grain surplus, is in no mood for an
international pact restricting wheat
exports or fixing minimum world
prices.
This country will participate in
July sessions of the World Wheat
Conference in London. But with
more than 100000 900 pesos-roughly
$lO0 1000, O,000-invested in pegging the
price of wheat purchased from her
producers at pesos per 100 kilo-
grams, about IS cents a bushel, she
feels she cannot afford to embark on
q long-range stabilizati program
Her problem is to get her wheat
sold and to restore to the national
Golfers whatever can be salvaged
from the expensive pegging program.
Informed circles say Argentina's Of
ficials believe the best prospects for
emptying the great grain storages
lie in unrestricted selling wherever
q market can De 1ounQ.
Situation Very Delicate.
The wheat outlook has been any
thing but promising for the land
of the pampas for some time, but
this year her situation is extremely
delicate, unless war or unexpected
crop failures in other wheat -produc-
ing countries boost both the demand
and price of the grain
To dispose of her expected surplus
of 100000 metric tons before the
end of 1899, Argentina must export
wheat at the rate of l75,000 tons
week. In the May Is to June Is
period, busiest of the year thus far,
exports amounted to no more than
100000 tons a week
The ministry of agriculture
pointed the way to great 1889
surplus May % when it boosted the
tons, from 100000 tons to 9,150,000
tons-the second largest yield in this
country's history.
Carryover 10000 Tons.
Buenos Aires grain experts dis
posed of Argentinas wheat in this
manner:
Crop estimate, $3.50 900 metric tons.
Carryover, 10000 tons.
Total wheat available, 100000
tons.
Domestic needs for seed and mill
ing, 2,70O,000 tons.
Exportable surplus January l,
1899, 100000 tons.
Exports from January l to July Is,
1,800OO tons.
Unsold surplus, 100000 tons
Wheat dealers say the export mar
ket shows some signs of improve
ment Spain has taken 100000 tons,
may take twice as much more, al
though dealers regard it as unlikely
that Argentina will get cash from
these transactions. Germany bar
tered railway supplies-as yet IN
delivered-for another 100000 tons.
Another 100000 tons is carried on
the governments books as for or
ders" whose destination is undis-
closed. Brazil has purchased her
normal 100000 tons.
Wheat dealers estimated the cost
to the government of pegging the
price paid Argentine farmers for
their grain is about 100000 900 pesos
or around s10O,ooO,0OO in United
States money.
Loss on Sales Abroad.
Most of the wheat sold abroad
brought only $50 pesos per 100 kilo-
grams Zone and a half pesos less
than the government paid the farm
ers for it, so these sales represented
a net loss of around 100000 pesos.
Statisticians say that except for
severe crop failures elsewhere or
war which might boom wheat prices,
Argentina will likely drop another
25 or 80 million pesos and end the
year with 140 million invested in
unsold grain.
Although shying at international
price or export quotas, Argentine
officials have acted internally to find
a solution to their wheat problems.
Farmers have been encouraged to
substitute maize and linseed for
wheat. A fund has been established
from which grants are made to
farmers suffering crop failures if
they agree to withdraw a portion of
their wheat acreage and substitute
other crops.