WHEAT PROSPECTS

Dominion, Volume 14, Issue 59, 3 December 1920, Page 10

WHEAT PROSPECTS

•U the Palmerston North Luncheon Tiv, 1".. SI. Eliott mentioned the attitude adopted by the American i'nrm■•••s willi tecard to their wheat crop. ■*5 pointed out that ETiey were endeavouring to prevent a. fall in prices by refusing to sell their wheat. This ho. considered was unsound economically as all the other wheat-producing countries of the world had grown large crops this year, and the law of supply and demand would have to rule the situation. When he was in -America farmers wore calculating on getting three dollars per bushel for their wheat, but he considered they would be lucky if they got, half that amount. A parallel case was, he considered, provided in the advice given by tho Government to New Zealand farmers to hold their wool. He pointed out that other wool-producing countries were apdting tho same course. In the Argentine, the Government wero cndeavourina to persuade buyers to talis the stocks by offering them exceptionally good financial terms involving payment over u number of years. The demand for wool in the world was limited to a considerable extent, and those countries which were getting rid of their wool would, bo urged, be better off than those who proposed holding for higher prices.