WHEAT CORNER.

Temuka Leader, Issue 10304, 2 March 1922, Page 1

WHEAT CORNER.

PRICE OF BREAD GOES UP. LONDON, Fob. 27. The “Morning Post’s” market correspondent says that the biggest wheat corner on record is to be attempted. Last week the Loudon flour trade agreed to stand in, and proclaimed a rise of 2s on all Hours making 4s within a fortnight. The bakers first refused to buy, but at last agreed, increasing bread Id which increased their profit to the extent of 4s, which is their share of the exaction from the people. This movement, like all its predecessors, is based on the May options. Liverpool is already operating at prices indicating that the “Bulls” intend to clear a profit by 31s sd. The quantity of wheat to be lield back for the advance from 7s to Ss per bushel amounts to 7,000,000 bushels, held by Australian speculators who succeeded in forming a group supporting the Canadian-Americau syndicate which was ingeniously started as the Wheat Inquiry Bureau. These 18,000,000 quarters of wheat require £50,000,000 to manipulate them, but a profit of Is per bushel means £7,200,000 in three months. Even borrowing. £50,000,000 ,at 10 per cent, would leave a margin of £6,000,000. Bakers are already assuming that wheat will go to 64s Id, which is more than half the wheat Bulls re aiming at. Eleven pence for a loaf will enable the Bulls to realise their £6,000,000 profit. Probably the speculators fear that the bakers may increase bread to Is, and thus bring about a return of the food controller.