WORLD’S WHEAT

Hokitika Guardian, 22 February 1932, Page 5

WORLD’S WHEAT

SURPLUS DECREASING. RUSSIA A BIG FACTOR. [United Press Association. —By Electris Telegraph.—Copyright.] LONDON, Feb. 19. A valuable survey of the world’s .wheat position in 1931 has been issued by the ‘lmperial Economic Committee. Tfc discloses the idea that the slump in wheat prices has entirely been due t-o the over-production. It expresses the opinion that post-war impediments to Ithei world’s economic life have been, equally important factors. The committee say that uncertainty regarding Russia has constituted a likely and important contributory cause to the instability of prices. -More -exact intelligence on this subject is needed. Russia’s exports for the 1 first ten weeks of the 1931-32 crop year have totalled twenty-one million bushels more than in the same period of 1930 31 crop' year, but since this there has been less selling pressure, and there has apparently been the same cl fort to cancel Rnsia’s forward contracts. Her spring crop, apparently, has oiffercd considerably from drought, while her local consumption of wheat is increasing and is replacing that of rye. The committee considers that It would he unprofitable fot Russia to continue selling wheat ibolow cost, as wheat is the chief export with which .she pays for her ex* tensive requirements, The committee estimate the Russian exportable estimates that Russia’s e.vpurteble 193 L 32 surplus at thirty-three million bushels below that of the previous veer, VfhUe it says that the world’s wheat production is 180,000,000 millions short of its needs. The deficit must be provided from existing stocks, which, by the end of to© 1931-32 crop year, will be reduced to four hundred million bushels. The committee s-tys; “On such figures, it is impossible even approximately to forecase the prices. It Would .be a mistake to expect a- rise of p'K'O.s solely on the restriction of piuduction. A removal of obstacles for the recovery of the world s industrial life would go a long way towards improving the situation.