AMERICAN WHEAT MARKET.

Press, Volume LXVI, Issue 20039, 22 September 1930, Page 12

AMERICAN WHEAT MARKET.

SOVIET ACTIVITIES.

HEAVY SHORT SELLING.

iCiiiEi) PEESE A66OCIATIOK—BX EUJCTEIC •; XLEGEAPB —OOPYEI9HT.)

(Received September 21st, 0.0 p.m.)

WASHINGTON, September 19

Mr A. M. Hyde, Secretary of Agriculture, following a conference with President Hoover, dispatched a message to ihe president, Mr Bunnell, of the Chicago Board of Trade, asserting that "an enquiry revealed heavy short selling of wheat in the Chicago market by the Uu.ssJ.in Government. There was no question that this had contributed to the fall of the price of v heat. Obviously it is impossible for the Soviet to deliver grain in Chicago over our tariff of 42 cents per bushel. I will be glad to know what provisions \ our Exchange can make for the protection of American farmers from such activities." Mr Hyde indicated that the end was bv no means reached in the Agriculture Department's investigation, prompted by newspaper charges, that the Soviet tMd sold 1.1,000.000 bushels of wheat f.n the Chicago futures rur.rket for the purpose of breeding discontent among American, fanners.

Mr Hyde said that he had discovered no actual wheat deliveries on Russian futures trading, and it was the Department's opinion that none were intended from the start; but lie pointed out that the bare knowledge of the Soviet selling short in America would have an immediate psychological effect on prices in the United States. Experts of the Chicago Board of Trade agreed that there was no bar to any foreign country "hedging" in wheat, which was an open practice here and fully legitimate, unless based on improper motives.

Representatives of the Board declined to state whether they believed that the Soviet's motives Mere questionable. It was cenerally believe*! that the Soviet sold nhnrt a total of 13,000.000 bushels, including Canadian wheat, and it is reported that the Soviet, in order to attain her ambition to compete with Canadian, American, and other grains, is exporting so much of the present crop that threats of starvation are arism? in Russia due to the loss of wheat .Which will serve to pav for American machinery to be used for larger crops in iutnre.

In the course of his „telegram Mr Hyde said that short selling of as much as five million bushels had been admitted by the All Russian Textile Syndicate at New York.

Some Chicago observers think that the Russians will suffer heavy losses as a result of their speculations. Mr Bunnell assured Mr Hyde that he would conduct an immediate investigation into the. Secretary's charges. SHORT SELLING ADMITTED. ORDERS RECEIVED FROM RUSSIA.

(Received September 21st, 5.5 p.m.)

NEW YORK, September 20,

M. E. T. Belitzky, vice-president and treasurer of the All Russian Textile Syndicate, said on Saturday: "The syndicate had sold wheat short in Chicago on orders from Russia." He added that the sales were intended as a usual "hedging" operation, and were relatively of such small quantity that they could not appreciably affect standard prices.

REACTIONS AT CHICAGO.

VARIATIONS IN PRICES.

(Eeceived September 21st, 7.15 p.m.)

NEW YORK, September 20.

At Chicago grain prices rose and fell to-day in accord with alternating developments with regard to the charges that the Russian Government is disorganising market values by short selling. After a hesitant start, wheat jumped 2} cents per bushel, responsive to word of moves to halt any such action by Russian agents. The late weakness of wheat was simultaneous with Mr J. Brunnell's telegram to Mr A. M. Hyde that Chicago has a recognised world market where "hedging" and protecting of grain all over the world in all positions is customary. Closing quotations were never an actual rally from io-day's bottom figures, and were unchanged to half a cent lower than yesterday's close.

PRICE OF WHEAT.

\ EFFORTS TO AVERT A CRASH.

ADELAIDE, September 20. A deputation of wheat-growers asked the Premier, Mr L. L. Hill, to cooperate with the other State Governments in trying to stave off a crash in wheat prices One speaker contended that on existing prices it would not be profitable to take off the crops. Mr Hill agreed to the course suggested. BUTTER FOR CANADA. [THE FBESS Special Berrtce.] AUCKLAND September 21. A substantial shipment of butter goes forward from Auckland on Tuesday by the Niagara for Canada. This will be tiie last shipment to arrive in - Canada prior to the application of the . new tariff. In all, it is exported that the vessel will take approximately 34,000 boxes. To date no arrangements have been made for consignments to Eastern Canada this season. Next month's bookings are comparatively heavy, space for more than 240,000 boxes of butter having been allotted to" this port. Four vessels will make Auckland the final port of loading. Practically the whole of the exports will go to London. CANTERBURY CO-OP. POULTRY PROPUCKRS, LTD. The Canterbury' Co-op. Poultry Producers, Ltd., report that medium yarding of poultry ire eomW forward for the markets, but the Supply it not quite equal to the demand, and mod table chickens and nana in prime condi Sm have hardened slightly. Our prices per pair are:—Table chickens, «J t «« M *• .7. 6d. heavy 8e Wljiitai, light 48 6d to fie 84, heavy 6s 6d to 8s 6d: ducks, 4s 6d to USA; **»**, 7s to 9s; turkey*, teas "» ' UZtt, gobbler* 80s to S7«.