SHORTAGE NOT LIKELY

Poverty Bay Herald, Volume LXIII, Issue 19099, 21 August 1936, Page 2

SHORTAGE NOT LIKELY

WORLD FOOD SUPPLY

AMERICAN CROP LOSSES

LONDON, Aug, 3

According to an authoritative survey, it is most" unlikely that a world food shortage will result- from the damage to the American wheat crop. Nevertheless, there is every prospect of the. world price remaining- very firm for the coming season’s; crop. Australian farmers seem assured of at least 5s a bushel, even if the. harvest D better than normal, while if Die_ Australian and Argentine crops- seriously fail, the authorities believe prices will rise spectacularly. It is considered too early to make nn accurate forecast, but at present there is no indication that (ho yields will lie less than normal.

The position in the. United States is that past, surpluses arc being reduced, and between 10,000,000 and 20,000,000 bushels will probably be imported. The Canadian crop, originally expected to be 450.CC0.000 bushels, is now forecast nearer 200.CC0.000. About. 105.0C0.C00 bushels will he needed on the domestic market; 130,000,000 bushels remain in reserve from previous surpluses. Tho net result with tho 1936 crop is that the amount, on the market will be equal t.b a. good year's crop. The only result, of the slump in United States maize production is expected to be tho absorption of some pooror-quality wheat as animal feed, involving a slight increase of import requirements. ITALIAN CROP BAD The position in Europe is not- promisin'l'. The Italian crop is bad, and Die outlook in Europe generally is that if the rainy weather continues, tho quality of the wheat, will suffer, and this will compel mixing with hotter grain. The elimination of the huge American surpluses is regarded favourably in the grain trade,- because the. .succession of recent surpluses had depressed prices (to an artificially low level. Wheat now held at the elevators in the producing countries is known to be sufficient to supply the world market until the Australian and Argentine crops aro harvested in November and December. Reports from Buenos Aires state that during the last two months, conditions have been unfavourable to good yields, but last, week brought a transformation to seasonable, dry, cold weather. It is believed that the area of the new crop is above normal, with a fair possibility of exceeding the average for the past* five, years, of 6.600.CC0 tons. With last year's crop, only 3,G00,C00 tons, this will constitute an exportable surplus of little more than half the normal quantity.