WHEAT PROSPECTS

Hokitika Guardian, 9 April 1937, Page 7

WHEAT PROSPECTS

FOR 1937 ARE BRIGHT.

Reviewing world wheat prospects for 1937, the Royal Barm of Canada, rays that stocks in August next will probably lie reduced to at least normal levels, and future world requirements will have to be met from current crops.

Requirements by importers, other than European, are not expected to be quite so high as in 1935-3(3--about lAr million bushels.

Total import requirements of the world, therefore, have been estimated by Broomhall at 5(38 million bushels against 1935-3(3 shipments of 494 million. If European requirements substantially exceed recent estimates, world stocks may end the season at subnormal levels. After allowances are made for normal stocks at the end of the 'season, supplies available for shipment from the principal exporting countries are placed at 570 million bushels as follows : Canada 215 million, Argentina 155, Australia 80, the Danubian Basin 80, and other countries 40 million.

Against this the 1 total requirements of importing countries have been shown as 568 million bushels. This indicates the exceedingly close balance between demand and supplies available during the present season. Prices have risen to the highest levels reported since January, 1930, and early reports already suggest an expansion in the areas devoted to the cultivation of wheat. In the United States the acreage sown to winter wheat last autumn, estimated at 57,187,000 acres, is by far the largest on record, the previous high level of 51,391,000 sown for the 1919 crop being greatly exceeded. The United States Department of Agri culture suggests that the combined production of winter and spring win at, in 1937 will amount to more lhan ."OQ million bushels, and o.vced o' 9:nnv

requirements. Canada has harvested six poor crops during the past eight years. Growing conditions have been unfavourable, and crops have suffered severely from drought and rust as well as from grasshoppers and early frosts. The whole gamut of the ills and troubles to which the wheatgrowor is si.'vet has been experienced. Moreover, the rare nge sown to w'.mit in YCstcrr. Can uln was 5 per cent greater in 193(3 than in 1935.

Wheat cultivation is apparently on the up-grade, and, with the prevailing high prices a further increase in ac*>e ige may lie made, in spite of the poor moisture conditions prevailing; Surveys of soil arid other conditions relating to wheat production in West ■in Canada are now in progress in order that a planned programme lor lain! utilisation may be devised, putting the arable land to its most profitable use with the least risk of crop failure to the farmer. Consuming markets are also being studied, and a greater use of Canadian high-grade wheat encouraged. With increased prices for wheat and larger world shipments, the putlooK foi the Western farmer has greatly improved. ft is essential, however, that the -eturn of more favourable growing con ditions should be accompanied by the levelopinent of more receptive overseas markets.

The Argentine wheat crop for 193(537 is estimated at 200 million bushels. This compares with the, final estimate of 141 million for the 1930-33 crop and an average production of 214 mil Mon for the five years ended with the ' 931-30 crop. Domestic requirements of 95 million bushels leave 155 million available for export. The carryover on August 1, 193(5. had been reduced to 27 million bushels, and si >.-ks sr« not expected to exceed this low level at the end of the season

The Australian crop lid not h, ..<> veil, and is placed at 131 inillu o . "sh 4s. This compares with 113 million bushels in 1935-33 and a live-vear average of IS I million. Domestic requirements average 55 million. It a inn ibout S(l million bushels avaavMt: for export.