WORLD WHEAT VALUES

Hawera Star, Volume LI, 20 February 1932, Page 7

WORLD WHEAT VALUES

CAUSES OF SLUMP PRICES POST-WAR IMPEDIMENTS IMPERIAL COMMITTEE’S SURVEY iDmied Press Association —By Electric Telegrapn Copyright.; Received 2.30 p.m. to-day. LONDON, Feb. 19. A valuable survey of the world’s wlieat position in 1931 has been issued by the Imperial Economic Committee. It discounts the idea that the slumij price is entirely due to over production and expresses the opinion that the post-war impediments to the world’s economic life are equally important factors, while the uncertainty regarding Russia constitutes a likely and important contributory cause of the instability of prices. More exact intelligence oil this subject is needed. Russia’s exports for the first ten weeks of the 1931-32 crop year totalled 2.1,000,030 bushels more than in 193031, but since the lower selling pressure there lias been apparently some effort to cancel forward contracts. The spring crop ha;s apparently suffered considerably from drought and local consumption of wheat is. increasing and replacing rye. The committee considers it would be unprofitable for Russia to continue selling below cost as wheat is the chief export with which she pays for her extensive requirements. Estimates of Russia’s exportable 1931-32 surplus are 33,000,000 bushels below the previous year, while the world’s production is 180,000,000 short of the needs. The deficit must be provided from stocks which by the end of 1931-32 will he reduced to 400,000,000. “On such figures it is impossible to oven approximately forecast prices,” states the report. “It would he a mistake to. expect a rise solely on the restriction of production. The removal of the obstacles, to the recovery of the, world’s industrial life would go a long' way towards improving the situation.”