WORLD'S WHEAT SUPPLY

New Zealand Herald, Volume LXIX, Issue 21114, 23 February 1932, Page 9

WORLD'S WHEAT SUPPLY

NEW CROPS INADEQUATE. DRAFT ON EXISTING STOCKS. LONDON. Feb. 20. A valuable survey of the world's wheat position in 1931 has been issued by the Imperial Economic Committee. It discounts tho idea that the slump in price is entirely due to over-production. The committee expresses the opinion that post war impediments in the world's economic life are equally important factors. The uncertainly regarding IviiSbia constitutes a likely important contributory cause of the instability of prices. More exact intelligence on this subject is needed.

Russia's exports in the first 10 weeks of 1931-32 crop-year totalled 21.000.000 bushels more than in 1930-31, but since there was less selling pressure apparently there was some effort to cancel forward contracts. The spring crop apparently suffered considerably from drought. Tho local consumption of wheat is increasing, replacing rye. Tho committee considers it will be unprofitable for Russia to continue selling below cost as wheat is her chief export and with .it she pays for her extensive requirements. It estimates that Russia's exportable surplus in 1931-32 will be 33,000,000 bushels below that of the previous year, while the world's production will be 180,000,000 bushels short of needs. This deficit must be provided from stocks which by the end of 1931-32 will be reduced to 400,000,000 bushels. " On such figures it is impossible even approximately to forecast prices," says the committee. "It would be a mistake to expect a rise solely on the restriction of production and the removal of obstacles. The recovery of tho world's industrial life would go a long way toward improving the situation."