WHEAT GAMBLE

Taranaki Daily News, 29 September 1930, Page 7

WHEAT GAMBLE

“OBJECTIONABLE TRADE” STRONG PROTEST IN CHICAGO ‘MUST BE BROUGHT TO END’ COLLAPSE OF THE MARKET SPYING FOR REDS ALLEGED

By Telegruph—Press Assn.—Copyright. Rec. 5.30 p.m- ~ New York, Sept. 27. Mr. John Bunnell, president of the Chicago Board of Trade, telegraphed to Mr. A. M. Hyde, Secretary for Agriculture, that the selling of grain futures on United States exchanges by foreign Governments is “a new development of commerce of a seriously objectionable nature and must be brought to an end.”

Giving evidence before Mr. Hamilton Fish’s committee at New York inquiring into the short-selling activities of the Soviet, witnesses for tho All-Rus-sian Textile Syndicate, which had made the short sales, testified that these were legitimate hedging activities to. protect tho European position. A former' Russian official testified that facts about the American Navy and Army were being sent to Russia by Soviet trading groups doing business here. Wheat futures fell yesterday with a rush of selling orders, led by large commission houses. Quotations closed: September, 76 5-8 cento; December, 80 3-8 cents; March, 84 1-8 cents; May, 86| cents. The bearish influence of cheap Russian grain, says the Chicago coi respondent of the New York Times, brought another hysterical wave of liquidation by holders of wheat and other "rains in the world’s market today and sheared off an additional i £200,000 from the value of American farmers’ crops in the reaction on the Chicago market. , . , Neither the Board of Trade s barring of Russian short-selling nor the optimistic statements by the Farmers’ National Grain Corporation or the Gov-ernment-organised Co-operative Association had any effect in preventing a continuance of the downward trend of Chicago prices, which registered losses of almost seven cents during the week. September wheat to-day reached the lowest rate since 1908, and all futures were off. Winnipeg, while not fully reflecting the break in Chicago, was nevertheless off 1 7-8 to 2 1-8 cents, reports of export sales of 600,000 bushels and the lack of hedging pressure being a factor. Buenos Aires wheat closed” f to 7-8 cents lower. EFFECT ON BRITISH MARKETS. REACTION TO WORLD CONDITIONS Rec. 5.‘5 p.m. London, Sept. 27. The market for wheat' cargoes is dull in reaction to lower American quotations, liberal world. shipments and heavy Russian and Continental arrivals. Parcels are neglected with a decline of 9d to Is. Quotations for futures at London are;’ September, 275; Decern" ber-February, 27s 10d. Quotations for futures at Liverpool are: October, 5s lid; December, 5s Hid; March, 6s IJd; May, 6s 2d.