SALE OF WHEAT BY CANADA

Press, Volume XC, Issue 27373, 11 June 1954, Page 11

SALE OF WHEAT BY CANADA

Further Price Cut “If Necessary”

(Rec. 10 p.m.) OTTAWA, June 9. The Trade Minister (Mr C. D. Howe) said tonight that Canada would make another cut in wheat prices if a further reduction were needed to maintain world sales.

He said in the Canadian House of Commons that the Government would make no fetish of keeping prices at current levels if they interfered with exports.

Canada at present was providing about 40 per cent, of the world wheat moving in international trade. He did not believe Canada could obtain a greater share of the world market under present conditions, but Canada would attempt to continue to maintain that proportion, even if it meant a further price cut.

The Federation of Agriculture of the Prairie Provinces today asked the Federal Government to indicate immediately that Canada did not intend to take part in a wheat price war. The federation, in a statement, said this could be done by an immediate announcement that the initial wheat price for the 1954 crop would be maintained at 1 dollar 40 cents a bushel. The Canadian cut of 10| cents in the export price of some grades of Canadian wheat, which was announced on Monday, would have a bad reaction in the wheat market, the federation said. This might be offset materially by a display of confidence on the part of the Federal Government.