WHEAT MARKETS

Otago Witness, Issue 3994, 30 September 1930, Page 27

WHEAT MARKETS

RUSSIAN OPERATIONS.

EFFECT OF PRICE-CUTTING. LONDON, September 22. Price-cutting by Russian wheat inter? csts, according to a leading member of the Corn Exchange, knocked the bottom from the market to-day. He says: “ I cannot remember such a terrible situation in the grain industry. Prices here in Liverpool are ridiculously low. This wheat was grown in Russia by serfs, thus can be marketed at a lower level than British Empire wheats. The Soriot has a huge fleet of vessels directed ’bv wireless to the most favourable dumping ports.”

Another Baltic Exchange expert says that the Russians are 3 offering grain at rates much less than their own halfstarved population give for it.

A DECIDED EASING. LONDON. September 24. llierc has been a decided easing 1 in .Russian wheat chartering to-day. °The London Grain Reporter says that the moderate decline in values’ during the week may be taken as a criterion of the actual position. Scare statements can be discounted when the present outlook of the Russian supply is 6,000.000 quarters, which is relatively insignificant compared with the pre-war average of 20,000,000.

CHICAGO PRICES RALLY.

GAINS AT WINNIPEG.

NEW YORK, September 24. Chicago wheat prices rallied unexpectedly at the close of to-day’s trading, after September futures had’dropped to «6§ cents—the lowest for 23 years—and closed with all months showing advances, which more than eliminated the day’s recessions. The recovery occurred after the American Farm Bureau Federation had announced that its board of directors would meet on October 2 to investigate any influences the Soviet Government might have on the market.

Winnipeg wheat prices, after falling to the 1906 level on the Exchange, rallied to score fractional gains. October wheat had drifted to 71J cents per bushel. Good support was encountered around bottom levels, however, and prices came back to wipe out the losses. Meanwhile the Executive Council of the Exchange is continuing its investigations into the fraudulent wheat pool message.

SHORT SELLING.

INQUIRIES TO BE HELD

NEW YORK, September 24.. Mr Hamilton Fish, chairman of the House Committee which is investigating the Communist activities has telegraphed to Mr R. B. Bennett, Premier of Canada, suggesting that he should send representatives to the committee’s inquiry into the Soviet short wheat selling at Chicago on Monday. OTTAWA, September 25.' Canada will not send a representative to the United States inquiry into Soviet short wheat selling. Word to this effect was despatched by the Acting-Prime Minister (Sir George Perley) to Mr Hamilton Fish, chairman of the Investigation Committee at New York.

RUSH OF FORWARD SALES.

AN OBJECTIONABLE DEVELOP- . MENT.

NEW YORK, September 26. A Chicago message states that Mr Bunnell telegraphed to Mr Hyde (Secretary for Agriculture) saying that the selling of grain futures on the United States exchanges by foreign Governments is “a new development of commerce of a seriously objectionable nature, and must be brought to au end.”

Wheat futures turned downward, with a rush of selling orders, led by the large commission houses.

Wheat closed: September 76§ cents per bushel; December, 80g; March, 84 j; May, 86 fd.

PRICES STILL FALLING.

NEW YORK, September 27.

The New York Times Chicago correspondent states that the bearish influence of cheap Russian grain brought another hysterical wave of liquidation by holders of wheat and other grains in the world’s market to-day and sheared off an additional 1,000,000* dollars from the value of American farmers’ crops. In a reaction on the Chicago market neither the board of Trade’s barring of Russian short selling nor the optimistic statement by the Farmers’ National Grain Corporation or the Governmentorganised Co-operative Association had any effect in preventing the continuance of the downward trend of Chicago wheat prices, which registered losses of almost seven cents during the week. September wheat to-day reached its lowest levpl since 1908, and all futures were off. Winnipeg, while not fully reflecting the break in Chicago, was nevertheless off cents to 2J cents, reports of export sales of 600,000 bushels and lack of hedging pressure being the factor. Buenos Aires wheat closed J cents to | cents lower-