GRAIN FUTURES TRADING

Taranaki Daily News, 17 December 1930, Page 7

GRAIN FUTURES TRADING

CURB UPON SPECULATION

PROPOSAL FOR LIMITATION REGULATION OF ACREAGE DOMESTIC BASIS IN U.S.A. By Telegraph—Press Assn.— Copyright. Washington, December 14. The grain ■ futures administration released its .annual report, in which it recommended a modification of the Grain Futures Act in order to limit the amount of purchases and sales for speculative purposes with a view to subjecting the wheat markets .to the laws of supply and demand. The report says: “The result of the past seven years’ experience of the administration has convinced it that the enactment of a strengthening Act* to the present law would make possible a more effective regulation Of the grain future markets and tend to insure the movement of grain prices in accordance with the conditions of supply and demand. “During the year just closed the total volume of trading in grain futures on the contract markets amounted to slightly below . 25,000,000,000 bushels. The transactions in wheat futures alone during the 12 months aggregated nearly 20,000,000,000 bushels, the greatest for this grain of which there is any record. ADJUSTMENT OF PRODUCTION. >. f x* PURELY DOMESTIC BASIS. . Rec. 7 p.m. Washington, Dec. 15. Mr., Legge, chairman of the Federal Farm Board, declared the board’s programme to place wheat production on a purely domestic basis, thereby doing away with.a Surplus, for export; was possible of accomplishment within the next two years unless a radical change took place in the world wheat situation. Through feeding wheat to live Stock and “the adjustment ■ rapidly being brought about the programme has not so Very far to go.” From the standpoint bf reduced acreage a curtailment of about 20 per cent, would be- necessary completely to adjust the wheat production to the amount of the demand. ■

Mr. • Legge said it was reasonable to expect future repetition of such a curtailment.,,. ■ /. ■ -