“A WISE MOVE”

Gisborne Herald, Volume LXXIV, Issue 22314, 26 April 1947, Page 5

“A WISE MOVE”

BRITISH WITHDRAWAL OPINION IN LONDON SELLERS’ MARKET ENDING LONDON. April 23. Reuter’s economic correspondent says London grain circles consider _ that Britain’s withdrawal from the international wheat conference is wise. It is pointed out that Britain’s idea of values would be a “floor’’ price of one dollar a bushel and a “ceiling” of perhaps one dollar 80 cents. The longterm wheat agi-eement with Canada was based orignally on wheat at one dollar 55 cents a bushel of 001 b. at Fort William. Port Arthur or Vancouver, at which price Britain was at present getting Canadian wheat, with adjustments in later years to accord with supply and demand. This level is obviously entirely out of line with the present United States values, which are around three dollars a bushel for No. 2 hard wheat on the spot and two dollars 50 cents for delivery in May. London grain traders say it would be absolutely foolish to make agreements in other countries at fixed prices related to the present world price levels. Moreover, the long run of sellers’ markets for wheat may, be nearing an end because the United States crop prospects suggest that she will achieve a record yield in 1947.