WORLD WHEAT.

Auckland Star, Volume LXV, Issue 278, 23 November 1934, Page 7

WORLD WHEAT.

SITUATION SURVEYED.

Stocks Next Year Lower Than Since 1928.

IMPORT OUTLOOK GLOOMY,

(United P.A.—Electric Telegraph—Copyrigiit) (Received 11 a.m.) BUDAPEST, November 22. The Wheat Advisory Committee, in a survey of the world situation, states that there is every reason to suppose that before August, 1935, world stocks will be lower than at any time since 1928. It is estimated that owing to small production in Canada and the United States wheat supplies next jfear will be about 785,000,000 bushels, which is 350,000,000 below 1934-35.

Therefore, it is stated, there will be a tremendous improvement in the stock position, as stocks will be reduced from 500,000,000 bushels above normal 011 August 1, 1934, to only about 150,000,000 above on August 1, 1!)35.

Regarding import demands, the committee strikes a pessimistic note. It says that owing to the present policy most importing countries are protecting their wheatgrowers against foreign competition, combined with increased yield in most European countries.

There seems to be no reason to anticipate an annual European demand exceeding about 450,000,000 bushels in the next few years, while it is improbable that non-European countries will import more than 150,000,000.

The French representative informed the Wheat Committee that France was abandoning the minimum price system for home-grown wheat in order to narrow the difference between that price and the world export price, and to discourage overproduction. France would take energetic internal measures to increase consumption and establish safety of reserve. She was prepared to denature portion of her exports, besides regulating them. Her present surplus was 15,000,000 bushels. BIG FRENCH LOAN. TO FINANCE EXPORTATION. (Received 1 p.m.) PARIS, November 22. It is reported that the Government intends to borrow 14,000,000 francs from agricultural and other internal funds to finance the exportation of surplus stocks by covering the loss on selling at the world price. The loans will be guaranteed by a milling tax.