PRICES CRASH

Rotorua Morning Post, Volume 2, Issue 364, 27 October 1932, Page 5

PRICES CRASH

(Press. Assn.-

WHEAT VALUES "NOSE DIVE" TO LOWEST LEVEL OF SEASON NO WARNING SIGN

-By Telegraph— Copjrighth

Winnipeg, October 25. Influenced by the withdrawal of support from a proxninent outside source all futures "nose dived" to new seasonal low points. The Winnipeg wheat market on Tuesday fell from 2 cents to 2 3-8 cents. Quotations for October delivei'y closed at 47a cents, November 47 3-8 sents, December 48 cents, and May 52 1-8 cents. The decline came without xvarning for the day's price for December delivery stood at 50 cents, and for May at 54?. cents, and no amoxxnt 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 regax*d these prices as pegged. These. beliefs were swept overboard in less time than it takes to tell at the end of the initial hour's trade. Sxxpport in the form of buying ordei-s provided resistance after a break of nearly three cents, and the mai'ket made a gradual recovery from the low points, but buying was not aggressive and the eomehack was limited. Some thought the artificial level had been lowered becaxxse of the money exchange sitxxation, that the reeent 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 wheaf in the British market.