CANADIAN WHEAT

Hokitika Guardian, 27 October 1932, Page 5

CANADIAN WHEAT

SLUMP IN PRICES NO WARNING OF DECLINE GIVEN (United Press Association—By Electric leiegraph—Copyright; WINNIPEG, October 25. Influenced by the 1 withdrawal of support rrom a prominent outside source, all futures Wse-divedi to new seasonal low points on the Winnipeg wheat a market to-day, closing down two to | U'ctboer closing at 471, November .I'fiiqfjj TM't/iiilfer 48, May 525.. deoSSie came wichouV warning, dtor days the sprite of December wheat stood at 50, and May 545. No amount of selling pressure seemed able to break these levels. Support, believed to be of an artificial nature, was always forthcoming, and the trade had come to regard these prices- as pegged. These beliefs were swept overboard in less time than it fakes to tell at the end of the initial hour’s-trade.

Support, in the form of buying orders, provided resistance after a break of nearly three cents, and the market made a gradual recovery from the low points. Buying was not aggressive, and the come-back was limited. Some thought that the artificial level wag lowered because of the money exchange situation, The recent rise in the Canadian dollar had brought United States wheat closer to a competitive basis, while the weaker sterling widened the spread between Argentine and Canadian wheat in the British market.

NO WHEAT BONUS THIS YEAR. OTTAWA, October 25. “The Dominion is not in . a position to pay a wheat bonus this year,” the Premier (Mr Bennett) told the House on Tuesday, in reply to a question. “What basis existed for the newspaper report that the Government’s purchases of wheat futures is having a stabilising influence on the market ?” Dr. J. F. Donnelly (Liberal, Willow- ' bunch), asked Jxr H. H. Stevens in the House. When he had read 'the article, he would give an answer, Mr Stevens replied. * CANADA’S WHEAT BONUS. OTTAWA, October 24. It is understood that the Government has decided to grant a tonus of five cents a bushel for export wheat. Canadian lake shippers are preparing to request the Government to urge Britain to amend the Conference Treaty and to grant the arranged six cents bushel .preference only on grain shipped from Canadian ports, rather than via the United States, CHICAGO WflJ AT SMJMJP. CHICAGO, October 25. Report? that Canadian support had been abruptly withdrawn from the Winnipeg market, plunged Chicago wheat down, late on Tuesday, to within a fraction of the .all-time bottom record. Talk' was heard that the lowering of prices at Winnipeg was an effort to hold the world wheat export trade for Canada, until the new Argentine crop started to compete seriously. Wheat dosed at 2$ to 2| under Monday’s finish.