MARKET SWAMPED

Otago Daily Times, Issue 26692, 11 February 1948, Page 5

MARKET SWAMPED

LIVE STOCK PRICES FALL UNITED STATES FARMERS PANIC N.Z.P.A.—Copyright Rec. 8 p.m. NEW YORK, Feb. 9. Chicago grain made a strong recovery to-day, but the price break spread suddenly to the livestock market. Pigs fell to the lowest levels since two days after price controls were removed in October, 1946, and at 22 dollars and 25 cents per 1001 b were 4 dollars per 1001 b under Friday's prices. When trading ended there were still 4000 unsold, with 15,000 more due in for to-morrow’s market. The cattle market also slumped. Nervous farmers had rushed 18,000 cattle to the market and 5000 were left over when the market closed. Cattle were down as much as three dollars on Friday’s prices and lambs one dollar. Market experts attributed the decline of livestock prices to last week’s grain price sag. Farmers had apparently become jittery over the price drop and had decided to sell their livestock before the prices sank further. In Chicago and New York wholesale butter dropped 3.4 cents a lb to 85.4 cents. Cotton receded and there was a slight lowering of the retail prices of flour, lard, bacon, steaks, and bread. All grains, however, made a strong come-back, and closed firm. Wheat finished 5h to 8 cents a bushel higher. Corn rose the daily allowable limit of 8 cents. Oats gained 2j to 4£ cents. Brokers attributed the upward surge to the buying wave as the result of lower prices and to short-covering and forward dealing by millers. The grain rally heartened the New York Stock Exchange, but dealings were slow, witn a particularly cautious air general. The market tendency was toward a mild price recovery, although some leaders lost ground. In Washington, the • Congressional Committee to-day ordered an inquiry into last week’s grain slump. This followed charges by Representative Andreson that speculators had used inside information to make tremendous profits in the few days that Government purchases for export had controlled grain prices, and that Government plans to curtail exports had leaked out.