Evening star., 1940-10-13
U. 5. Loans Tighten
Wheat Supplies;
Prices Improve
Domestic Free Stocks
And Demand Brought
Closer to Balance
By FRANKLIN MULLIN,
Associated Press Market Writer.

hkSOCldted FGSse MdIhct WIIcI
CHICAGO, Oct. IA steadily
increasing amount of wheat involved
In the Government ever-normal
granary program and held OF the
commercial market temporarily has
brought the domestic free" sup
ply and potential demand closer to
q technical balance, grain trade
statistics indicated today.
Grain men can foresee on the
basis of current data a time when
the amount of unpledged wheat will
be approximately equal to consump-
tive requirements If the storing OF
grain as Government collateral
continues at its present rapid rate.
Continuance of this process Of
pledging eligible wheat in return
for Government loans is dependent
on market trends to large degree.
Any unexpected developments that
might lift prices, now only slightly
above loan rates, to level where
producers could be encouraged to
sell grain rather than store it would
loosen up now frozen supplies. This
occurred last year when buying
coincident with the war and South
western drought carried prices up
well over loan rates. AS it was.
1877 ,000, 900 bushels were stored until
late in the winter.
1899 Levels Exceeded.
Already more wheat has been
pledged for loans than was tied up
by the end of December last year.
As of Tuesday the total was 209,-
120, 0,432 bushels, with reports tagging
behind actual granting of loans. In
addition, more than 100000 900 BUSH
els were held off the market under
provisions of the crop insurance
program.
Trade statisticians believe there
will be technical balance of supply
and demand should the total in
volved in the loan and insurance
program greatly exceed 100000
bushels, although they pointed out
that the loans will begin to mature
in the spring and, in fact, can be
called at any time in case Of
emergency.
Three hundred million bushels
taken from the estimated domestic
supply of 1,076, 900 900 bushels for
the season which began last July l
leaves about 776,000,000 bushels.
Although commercial mill grindings
so far this year have been running
about 3 per cent less than last year,
total consumption for flour is ex-
pected to be around the 480 ,000, 900
bushels usually used in this manner.
If export movement remains as 1t
has been recently, this will account
for 10000, 900 bushels.
Chicago Prices Gain.
Seed requirements may be around
85,000000 bushels and feeding on
farms may take close to 100000
bushels If average figures for the
decade from 1929 to 1888 are con-
sidered. This will account for a
total use Of $4,000 900 bushels.
Wheat prices this week partly
reflected the Tightening up of avail
able supplies. At the weeks close
Friday, quotation were 1924
cents higher than a week ago, or
around the best level In four
months. Corn was N-1h higher,
oats " lower to y higher, soybeans
2%-3ss higher and rye h-ss higher.
Winnipeg Market Quiet.
WINNIPEG, Oct. IL (R.-Interest
in wheat dealings on the Winnipeg
Grain Exchange was at q low ebb
today and closing prices were un-
changed to * cent higher with the
october future at 701s cents
bushel and the December and
May futures at their fixed minimum
levels of 71H and 75A cents re-
spectively.
Only a few trades were reported
and there were no indications Of
export business.
Both the Chicago and Buenos
Aires markets were on holiday.
In the cash wheat market, trad.
ers showed good interest in the
lower grades and . small amount of
No. 2 Northern changed hands.
There was Q slight increase IA Of