WHEAT SURPLUS LESS

Taranaki Daily News, 26 November 1934, Page 3

WHEAT SURPLUS LESS

INTERNATIONAL COMMITTEE VIEW.

PESSIMISM ON IMPORT DEMANDS.

Budapest, Nov. 22.

The International Wheat Advisory Committee in a survey of the world situation says that there is every reason to suppose that before August, 1935, world stocks will be lower than at any time since 1928. ,

It is estimated that owing to the small production in Canada and the United States supplies next year - will be about 785,000,000 bushels, which is 350,000,000 below 1934-35. There will be a tremendous improvement in the stock position, as stocks will be reduced from 500,000,000 bushels above normal on August 1, 1934, to only about 150,000,000 above on August 1, 1935. Regarding import demands, the committee strikes a pessimistic note. It says that owing to the present policy of most of the importing countries protecting their wheatgrowers against foreign competition, combined with the increased yield of most European countries, there seems no reason to anticipate the annual European demand exceeding about 450,000,000 bushels in the nqxt few years, while it is improbable that non-European countries will import more than 150,000,000. The French representative informed the Wheat Committee that France was abandoning the minimum price system for home-grown wheat in order to narrow the difference between that price and the world export price. Also, to discourage over-production she was taking energetic internal measures to increase consumption and establish a safety reserve. France was prepared to denature portion of her exports, besides regulating them. Her present surplus was 15,000,000 bushels.

A Paris cable states it is reported that the Government intends to borrow 14,000,000 francs from agricultural and other internal funds to finance the exportation of surplus wheat stocks by covering the loss on selling at a world price and guaranteeing the loans by a milling tax.