More Big Wheat Sales To Russia

Press, Volume CIII, Issue 30542, 10 September 1964, Page 5

More Big Wheat Sales To Russia

(N.Z.P.A.-Reuter)

OTTAWA.

Government officials are counting on large sales of Canadian wheat to Communist countries this year.

Wheat sales to Communist nations have buoyed the Canadian market for several years and brought unprecedented prosperity to the prairie provinces.

Current forecasts are that Canada will produce an average crop of approximately 500 m bushels. This is far below the 1963 record yield of 723 m bushels.

China has been the biggest buyer among the Communist countries. Last autumn, the Soviet Union unexpectedly asked for 228 m bushels of wheat and flour. Final shipments of this order are now on the way by sea. (Moscow reports say that the Soviet harvest this year is expected to be much bigger than that of last year. Official quarters predict that the harvest will not only satisfy the nation’s grain requirements but will also allow for a considerable quantity to be put into reserve). Other Eastern European countries have also been active customers for Canadian grain. Government trade officials here quote unofficial reports that there may be a considerable improvement of crops in these countries this year. Three Straws But three straws in the wind suggest that the Communist countries will be buying heavily again this autumn: 1. Czechoslovakia has Increased its purchases of Canadian wheat. Under a fiveyear agreement, the Czechs were committed to buy at least 12.8 m bushels this year. But recently they unexpectedly ordered : 18.3 m bushels instead of their remaining obligation of 8.4 m bushels. 2. Mr Khrushchev has stated that the Soviet Union intends to stockpile something like one year’s supply of wheat as insurance against any future crop failure. Canadian trade officials speculate that this may mean more Soviet buying abroad. 3. Poland, which has a threeyear wheat agreement with Canada, has indicated that she does not expect to get any wheat from the Soviet Union this year and may have to buy more from other countries. Poland recently ordered the last shipment required in the first year of her agreement with Canada.

In addition to the 500mbushel crop expected in the autumn, Canada has a carryover from last year’s crop of about 450 m bushels.