Evening star., 1940-09-29
Grain Pit Idle
As War Brings
Federal Regulations
And Loan Program
Also Curb Activity
BY FRANKLIN MULLIN.
Associated Press Market Writer.

mental changes in the grain busi-
ness, international and domestic,
have throttled the once roaring
Chicago trading pits down to an
idling hum.
War has stihed world trade, bring
ing complete domination by govern
ments of much of the international
business in grains. Government
efforts to protect producers from
low world prices have altered do
mestic marketing methods.
The important function of estab-
fishing prices still exists in Chicago,
attracting attention throughout the
world as it always has. but large
scale public participation in this
function has, at least for the mo-
ment disappeared. For one thing,
traders are waiting for a turn in
the war. Their business boom
evaporated with a price collapse in
May as the Germans invaded wes-
tern Europe.
Speculation, the goose that laid
golden eggs on La Sale street. has
dropped to a minimum. The in
vestment and risk money which per-
forms the economic function of pro-
viding capital to make the grain
trade tick. has been frightened away
by uncertainty regarding the war
taxes and exchange and Govern
ment restrictions on speculation
traders say.
Held From Market.
Under the ever-normal granary
system, large quantities of grain
principally wheat and corn, which
ordinarily would flow into market
channels to be "hedged" in the
futures pits and absorbed by in
vestors' capital. are being held of
the trade under loans. Many trad
ers, however. regard this as only
temporary. expecting that much
Of the grain eventually must follow
the normal course to consumers.
Business on the board of trade
which provides facilities and en-
forces rules by which buyers and
sellers are brought together in Chi
cago, has slumped sharply. Last
week less than 10000 900 bushels
were involved in futures transac-
tions. This was only a little more
than a third of the volume a year
ago.
However. trade is better than II
was early last year. Rejecting this
situation, a membership on the ex-
change recently sold for $3.50, low
est in more than 40 years. compared
with $4,000 at the peak in 1929.
Despite all this, the Chicago price
for wheat, corn. oats, rye, barley,
soybeans and other important farm
commodities remains as the beacon
light for transactions in the United
States and many parts of the
world. AS such. Chicago has lost
none of its importance as a grain
trading center. In fact. its posi-
ton has been enhanced by the
snuffing out of important free mar
kets in Europe such as Liverpool
and Rotterdam and virtual stag
nation of trade al Winnipeg.
Futures Move Higher.
Artificial Tightening of the COM
mercial wheat supply due to the
Government loan program, with
millers and merchandisers raising
bids to obtain grain, helped to lift
Chicago wheat futures more than
two cents bushel today to the best
level since the middle of June.
December wheat scared 2la cents
to 82as, the highest any futures con-
tract has been quoted here since
June 13. In the spot market, where
prices were 1a112 cents higher, No
l hard sold up to 84a, %. over the
Government loan rate and the best
premium since harvest. At Kansas
City No. 2 hard sold up to 82s4
while No. l dark northern spring
brought "a cents at Minneapolis.
Wheat closed 17sa2as higher than
yesterday, with December 821saA
and May 81%a5s. Corn was un-
changed to Il up, December 57aaa1s
May 58az; oats, 14ak up; soybeans
12a5s higher; rye, 1Aa15s up and
lard, 2 off to 3 up.
Mill buying and short covering
contributed to the wheat upturn.
Renewed activity at Winnipeg,
where until this week futures had
been pegged at minimum levels since
last June, attracted attention. Win
nipeg futures rose 11sa13s cents.
There were rumors that Canadian
mills have received large export
flour orders from England and were
buying futures for protection.
Grain range at principal markets