WORLD WHEAT SLUMP.

Shannon News, 4 June 1929, Page 2

WORLD WHEAT SLUMP.

‘POOLS CAUGHT WITH SURPLUS' ' I DUMPING OF ARGENTINE CARGOES CAUSES PANIC. LONDON,, May 25. “What has really happened about the wheat prices,” says a leading Liverpool merchant, commenting on the fall in prices at Chicago and Winnipeg, the 'Canadian reaction representing a fall of 44d a bushel, “is that Canadian and Australian wheat pools have been left in the lurch.” He declares that there was an enormous surplus and these pools have been holding up large stocks of old wheat. Purchases of Argentina wheat by Liverpool merchants caused them to unload, hence the break in prices. Advices from Winnipeg assert that the panic there is due to the dumping of large quantities of Argentina wheat in Liverpool. It is true that large quantities were shipped from the Argentine to Liverpool, but this was contracted for months ago, and allowed for in Liverpool futures quotations. Liverpool wheat merchants forecast the greatest wheat slump of recent times. Wheat is cheaper than at any time since 1914. Experts predicts that it may well go down another 10s a quarter, says the Daily News’s Liverpool correspondent. At Liverpool there is at present, more than 500,000 quarters, as compared with the normal 200,000. More is still pouring in from the Argentine, United States and Canada. It is stated that unless the situation is eased, the storage capacity will soon be used up. t Brokers state that the slump is due to a variety of causes, including the great frost of February, when, owing to the Continental “freeze up,” the World’s wheat exporting centres, instead of sending wheat to Germany, Denmark and the Mediterranean, were forced to .send it to Britain. For wheat cargoes, demand is negligible at a further reduction of 0d to Is qr. Parcels have slow request, fid to 9d qr. lower. Lots, exsteamer Ceramic, were sold yesterday at 42s 7£d. Liverpool futures, May, 7s 7§d; July, 7s ll£d; Otcober, 8s 3sd a cental.

MARKETS NERVOUS. LONDON, May 25. Wheat markets everywhere are nervous.. The “Daily Mail” says that vthere is little business being done on the'Baltic exchange. One of the. largest brokers declared that “Everybody seemed afraid to deal. They realised that the supply was larger than the world’s requirements. He added that as the American crop was practically assured, the Situation, cofuld not be eased in that quarter. “The only hope now is the failure of the Argentine or Australian crop.” The price of flour fell 2s a sack at Liverpool yesterday, but bakers declare that a further reduction will be necessary before cheaper bread can be made.

HEAVY BUYING LIFTS PRICES. CHICAGO, Wednesday. Heavy buying developed in wheat, lifting values from the lowest prices since 1923. In sharp contrast to the recent experience the fresh breaks in Liverpool quotations failed to have more ihan a transient effect in Chicago, where foreign buyers were definitely busy making purchases. May options, which early in-the fore noon touched a low level for the season, at 4s 44d, closed at 4s July at 4s llfd; September at 4s 9£d and December at 4s a bushel. WINNIPEG, Wednesday. The grain prices are fractionally higher to-day. The congestion has not improved at the shipping ports.

APPEAL |TO ARGENTINE. VANCOUVER (8.C.), Wednesday. Wheat news continues to dominate the newspapers. Mr George Williams, President" of the United Farmers of Canada, Association, said,“We are today, writing to responsible leaders in the Argentine suggesting a farmer-con-trolled wheat pool as a solution of the marketing problems, and we are forwarding them a copy of our contract, -advising them that we are striving to obtain 100 Der cent, control of Oanadion grain.

AUSTRALIA AS FACTOR. Towards the end of reaping time, Australia would have an , aggregate yield of between 140,000,000 and 160,000,000 bushels, which promised .an exportable surplus lalmast double that which was available in 1927-28, when exports represented 53,042,357 bushels. Throughout the whole of the current season there ihas been a disposition amongst Australian .growers to hold grain back from the overseas markets, in the hope that prices might improve —from their view point. There is no wheat pool, however, in N.S.W., although . there are *voluntaryq pools in .Victoria, South Australia and 'Western Australia. It is understood that these pools have a “working arrangement” in regard to the marketing of their wheat in London, and through that channel any action taken would be unitedly operable. THIS YEAR’S SURPLUS. Official records show that during the first half of the current season exports from the Commonwealth, included 19,165,633 bushels of wheat, that quantity comparing with 13,883,265 bushels despatched overseas in the corresponding portion of the previous season. It is in the latter part of the 1928-29 season, however, that the disinclination of Australian farmers to accept ruling prices for their wheat has become more pronounced, and there is a considerably greater quota of the available surplus held now than at this time last season. A lot of this season f s grain has been

shipped direct from Australia to India, exports thither during the first half of 1928-29 representing 7,098,248 bushels as compared with only 458*770 bushels to even date last season, *