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WILL HIGH PRICES FOR WHEAT CONTINUE?

Thb question as to whether it is likely that the present high pr:ca3 for wheat will continue is one of the greatest possible interest to farmers. Those lucky osob who have he'd on until now Lave much cause for jubilaiioD, but as by far the larger proportion of the em^ller growers parted with tbe'.r crops either before or in> medlately after last barvoet the preaeut high qaotatioDß are rutber a source of chagrin to them except In so rVr »a thty may be taken as an angary of similarly good rateß after next harvest. Happily for the farmers of Kew Zaaland there Is, we think, a good prospect that this will be the case. Not only Is it now cettUn that there-'wfinfc^ large demand In Austria owing to the dleastrous drought which has ruined the harvest throughout nearly the whole of the several oolonfea, bat, with the exception of Russia and Eastern Europe, nearly all the grain producing countries of the world exhibit a shortage which cannot but reeult m hiuh rates being maintained. Some interesting information npon this point may be gathered from Canadian papers to hand by the mall. For example, the 11 Montreal Daily Star" of October 1 contains a report of an interview with Mr Ogllvle, the noad of a great milling firm, who m reply to the question "DoeaUe rise iv whiat raeau anything permanent V replied "Certainly the rise is parmanejiß and cjmea to etay." Aeked for hit roaeons, he eald "It is due to the dlsfstera which bavo befallen the hatverie of tliis couatry, and which have been general also m Europe. C.uada has now nothing for export and before tho year ia ont it will be found that the United States has nothing either, aud there will be wailin many farmirg circhs which have sold grain that ought to have been retained. 11 Ho went on to explain that " Tha NorthWest wheat had been stricken by frosts m August," »nd . . » tDe eftrCU were most disastrous" and declared that " the European centres, which genera'ly look to the Amerloan continent for euppllee, will have to depend on "Russia end Eaa:srn Europe." Ii the tame paper is an account of the operations of one Hulch nson a big speculator m wheat, m rfferß»,co to which the •' Star " wrltea :—" Br< kers expeot to ace » big rice . . particular y iv October. Yesterday was an &txous day to the unlucky gentlemen who are still short on September. Just what Sutohlnaon will do with them to-day no one knows. Thsre aru due to bs delivered lo him five hundred thousand bushele. They have until 10.30 a.m. to do it In, but as it will be absolutely impowible for them to get together bo much wheat as that, or anything like it, ' Old Hutch' will have them at Mb mercy." The same paper contains a telegram from New York, dated September 30. giving an eccooot of the excitement on 'Change In oonneotlon with wheat, which reads as foU lows:"Probably never before inthehl3tory of the Produce Exchange has such a Bjeue of wild excitement been witnessed as to »k place there after the market -closed yesterday. During the day the one subject of conversation on the floor of the Exchange was the Hutchinson Chicago wheat corner. The ISew York wheat market, however, was scarcely affected by tho western equerz s and closed, m conformity with the Saturday half holiday law, at noon, at 1 to 5 points higher than Friday's olosre. Thla advance wag attributed to cables from Havre, rather than to • Old Hutoh'a ' operations When the gong Bounded Jot the close of !Ch«uge about 200 wheat brokers were congregated around the pit buying and Belling. Many tranaaoilonß were interrupted by the gong. A large number of brckers were reported to be short of the December option and rather than be caught m the • nwim ' determined to risk an Infringment of the Exchange rules. No attention was paid to the signal and bidding went on uninterrupted. Just then the excitement was increased by a telegram from Chicago that 'Old Hu'eh' had threatened to send the December option np to 2 dollars 50 cents by nooD, Chicago time. Nearly 500,000 buahele changed bands." While what is here disclosed shows that advantange is being taken by epeculatora »nd contrivers of " corners " to foroe wheat In tho American market qp to a higher figure than the mere shortness of supply would justify, there is at the same time evidence ecough that there is an actual shortage which muet have the effect of keeping np prlcee as the natural consequences, even without the factitious aid of commercial strategy; and as it appears plain that America will not be able to fill up the gap caused by the failure of the harvest In England, and In a larga part of the Continent oi Europe, it beams absolutely certain thai any oountry which is able to export mnal be able to command very satiflfaotorj prices. It is heaetily to be hoped thai New Zealand will be favored with a fia< harvest bbibod, and, if bo, oor farmeri may, we think, look for the best reeulti that they have experienced for many 1 long year.

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Permanent link to this item

http://paperspast.natlib.govt.nz/newspapers/AG18881208.2.27

Bibliographic details

WILL HIGH PRICES FOR WHEAT CONTINUE?, Ashburton Guardian, Volume VII, Issue 2008, 8 December 1888

Word Count
873

WILL HIGH PRICES FOR WHEAT CONTINUE? Ashburton Guardian, Volume VII, Issue 2008, 8 December 1888

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