WHEAT GAMBLE.

Auckland Star, Volume XLVIII, Issue 120, 21 May 1917, Page 5

WHEAT GAMBLE.

ALLIES' OPERATIONS. CHICAGO, May 12. Yesterday was settlement day on the Chicago Wheat Pit, and the price for May options, ill which new trading had! been discontinued, was fixed at 3 dollars' 18 ceuts (13/3), as compared with 3; dollars 23 cents (13/64), which was obtained during the boom on Friday. It was stated that there arc, in the Chicago public elevators, 200,000 buf-hels of wheat of the grade that is required to fill the May contracts.

It is estimated that the amount contracted for is a hundred times that quantity thus had not the Board of Trade intervened 05 per cent, of the contract might have been settled at as high as 10 doll.irs (£2 1/S) per bushel.

The "Longs" had the "Shorts" absolutely at their mercy. The situation differed from a comer in that holders were scattered, while a regular corner is usually manipulated by an individual. [As a matter of fact, the Allied Governments, through their food commissioners, held a natural corner. Recently! they were regarded as "long" sellers, as. they had 30 million bushels here, and; being unable to ship, they reduced their I holdings, and by force of circumstances] took handsome profits. I

They already have great profits on paper for the July and September options.

Dealings in May options having been withdrawn, speculators turned their attention to July wheat. There was wild excitement, and the prices realised for that period broke all records in the history of the trade. The rise during the morninsr was 30 cents (1/3) per bushel.