PRICES OF WHEAT

Hawke's Bay Tribune, Volume XXII, Issue 148, 8 June 1932, Page 11

PRICES OF WHEAT

ALL FACTORS JUSTIFY SHARP INCREASE. ONE BIG OBSTACLE. Ottawa, June 6. That a very sharp advance in wheat prices throughout the world would follow the stabilisation of exchange and the solution of the currency question is the opinion of the Miuister for Trade and Commerce, Mr Stevens. He feels that the world is moving towards such a solution. Only to-dav he received a letter from the Institute of International Commerce at Brussels, to which 20 Govern, ments are affiliated, supporting any move for an international silver conference. The letter offers to uso the institute’s facilities for such a conference. “All factors in the wheat market justify very much higher prices than those now quoted,’’ said Mr Stevens, “Visible stocks are down very materially. The United States situation indicates the condition of the ex. portable surplus to be the lowest in years. The Russian situation is very much changed from last year. Neither Argentina nor Australia have any large amount for the market,’’ Mr Stevens believed.

In addition, he said: “The buying countries of Europe have no material stocks in hand and for the past year have been buying from hand to mouth, knowing that the large surplus in North America was an ample guard against any unusual demand. This factor has now been removed and Canadian stocks are much below last year. In no sense' can they be considered excessive. The only thing standing in the way of substantial active buying in grain futures is the economic situation in Europe.” Mr Stevens said that all the factorwero present which in normal times would warrant a very sharp increase in prices,