A LOW LEVEL

Southland Times, Issue 21848, 27 October 1932, Page 5

A LOW LEVEL

WHEAT PRICES THE WINNIPEG MARKET RAPID DECLINE (United Press Assn.—Telegraph Copyright.) Winnipeg, October 25. Influenced by the withdrawal of support from a prominent outside source all futures nose-dived to new seasonal low points, the Winnipeg wheat market on Tuesday closing down two to 2'i cents on October closing prices 47}, November 478, December 48 and May 52J. The decline came without warning for the day’s price for December stood at 50 and May 54J-, and no amount of selling pressure seemed able to break these levels. The support is believed to be of an artificial nature, but was always forthcoming and the trade had come to regard these prices as pegged. These beliefs were swept overboard in less time than it takes to tell at the end of the initial hour’s trade. Support in the form of buying orders provided resistance, however, and after a break of nearly three cents the market made a gradual recovery from the low points. The buying was not aggressive and the comeback was limited. Some thought that the artificial level had been lowered because of the money exchange position. The recent rise in the Canadian dollar had brought United States wheat closer to a competitive basis, while weaker sterling widened the spread between Argentine and Canadian wheat in the British market.

NO BONUS CANADA’S WHEAT. Ottawa, October 25. The Dominion of Canada is not in a position to pay the wheat bonus this year, the Premier, the Rt. Hon. R. B. Bennett, told the House on Tuesday in reply to a question. Dr J. F. Donnelly (Liberal) asked Mr H. Stevens in the House on Tuesday what basis existed for a newspaper report that the Government’s purchases of wheat futures was having a stabilizing influence on the market. Mr Stevens said that when he had read the article he would give an answer. DROP AT CHICAGO ALMOST A RECORD. Chicago, October 25. Reports that Canadian support had been abruptly withdrawn from the Winnipeg market plunged Chicago wheat down late on Tuesday to within a fraction of the all-time bottom record. Talk was heard that the lowering of prices at Winnipeg was an effort to hold the world wheat export trade for Canada until the new Argentine crop started to compete seriously. Wheat closed 2 1-5 to 28 cents under Monday’s finish. 1