PEGGING WHEAT PRICES

Timaru Herald, Volume CXXXVIII, Issue 19946, 2 November 1934, Page 9

PEGGING WHEAT PRICES

PROTECTION OF HOME PRICES

DEFINITE POLICY IN

CANADA

United Press Association—By Electric Telegraph—CopyripHt

(Received November 1, 7.10 p.m.)

WINNIPEG, October 31

It was announced to-night by the Winnipeg Grain Exchange, that wheat prices will be pegged at 75 cents a bushel for December futures, and 80 cents a bushel for May futures, the pegging to become effective on Thursday. The pegging was made at the request of the Federal Government. Mr J. I. McFarland (general manager of the Central Selling Agency and agent for the Government) declared that the renewal of outside selling, recently complained of, had been responsible for the action taken. The duration of the pegged price was not set. Last year from August 15 to September 14 the pegged price was 70 cents on October futures, and was in effect for October futures for this year, but terminated to-day, and only December and May futures will appear on the board to-morrow.

‘‘While the Government has in mind certain restrictions that will prevent the recurrence of the heavy selling operations witnessed in the past few months,” said Mr McFarland, “it will take some little time to put these into effect. In the meantime, the Government is not prepared to stand by and watch the demoralisation of the Canadian farmers’ market by interests outside the Dominion.”

The regulation of futures trading in wheat on the Winnipeg Grain Exchange, it was announced on October 29, was urged by Mr J. J. McFarland, general manager of the Central Selling Agency of the Wheat Pools, and the agent for the Dominion Government. Mr McFarland did not detail how the regulation should be effected, but referred to quantitative trading restrictions, the Chicago Board of Trade, and limits to price fluctuations effective there. The statement followed long conferences with the Premier (Mr R. B. Bennett) and came on the heels of an alleged recent effort by foreign market operations to beat down prices in Winnipeg.