WHEAT COLLAPSE

Manawatu Standard, Volume XLV, Issue 101, 30 March 1925, Page 12

WHEAT COLLAPSE

WILDEST STAMPEDE ' SEEN IN AMERICA. N" EXPORT OUTLET. CHICAGO, March 16. All pro’ ious records in the matter of a' sudden drop were, broken to-day, when Mb, options lost 11 cents in the first 15 i unutes after the opening of the mark t. Quotati ms of 1.65 dollars had hardly been lusted before brokers were freely sel ing at 1.60. Wild dumping followed i ntil 1.54 was reached. Accordi ig to reports, Australia had more whe it than she knew what to do with, while Europe is with breadstuff; and huge quantities shipped from Amc rica could find no buyers, and are being dumped back to shippers. At Win lipeg the market collapsed to the extern t of 19 cent; at Chicago 14 cents. It was the wildest wheat stampede ever seen in America. Transactions reached such a speed that tho blackboard was frequently two cents bell nd the actual trading. HEAVY FALL IN STOCKS. NEW YORK, March 16. Wall street felt tho terrific battering when an avalanche, of selling orders sent lead ng industrials and railway stocks eight to ten points below last week’s average. PRODUCERS’ POSITION. SYDNEY, March 17. Panic seems to have taken tho place of mere weakness in the overseas wheat markets, according to private advices received to-day. Chicago dropped a further 112 cents to 153 cents a bushel for May options, while Liverpool'made a sensational drop ol 8d to 9d a cental. The condition of the option markets, of course, was reflected on London, where buyers have-withdrawn from the market, thus rendering it impossible to define values.

Commenting on the overseas position, a local grain exporter explained that, while at present the panic in America had completely demoralised tho market of the world, he anticipated an early recovery. American operators were wildly endeavouring to sell, thus forcing the market down. “Even now in London holders are tightening up, and not pressing sales, a fact which in itself will have a checking effect on the downward course of prices.” The decline is not likely to cause a very great loss to the N.S.W. growers. It was authoritatively stated that aboil 80 to 85 per cent, of the crop lias already been disposed of overseas at very satisfactory prices, leaving only a small percentage yet to be sold.