A "CORNER" IN WHEAT.

Temuka Leader, Issue 2261, 1 October 1891, Page 4

A "CORNER" IN WHEAT.

Melboubne, Sept. 22. A wheat corner has been formed, which is expected to meet with greater success than the same operation did two years ago, when it failed badly and left the speculators in a heavy loss. This season the circumstances are more favourable to a corner. The newspaper ertimates of last year's crops were extremely rosecolored, and, relying on these, a good deal of wheat was shipped for England, but when the Government statistician's ■petunia were published, it was found that

supplies were very short, consequently stocks had to be more carefully husbanded and prices have been fairly high, so that it is believed farmers have been encouraged to dispose of their supplies. On this of course depends the success of the corner. If farmers do not still hold extensively, and it is not believed that they do, the corner can command the market until next harvest.

The Argus of Friday last gives the following particulars of the formation of the corner :—The smallest of the stocks of breadstuffs held in the colony has at last resulted in the formation of a strong corner. A movement has been in progress for some days past, and iii the aggregate a large quantity of both wheat and flour has been secured. The market opened this morning in a rather excited state in consequence of the operations connected on account of the corner. Some 3500 bags, were, however, sold in the morning at 5s 6d to 5s 6£d, but later in the day one large holder was cleared out of all his stocks of wheat and flour, the transaction covering 18,000 bags of wheat at 5s 9d and 800 tons of flour at a full price. It is understood that a further transaction in wheat on a very large scale has been carried through 'at a similar price. The result of these operations is to largely place the market in the hands of the speculators who, it is understood, are not specially connected with the trade as such. On the other hand it is certain that three of the largest town millers have covered their requirements for a time sufficient to carry them within sight of the new .harvest. It is believed that the majority of the bakers carry very fair stocks of flour, but on the whole, the next two or three months are likely to form a critical period in the history of the wheat market for 1891. In addition to the sale of flour noted above, between two and three hundred tons of town roller have been taken up at £l2 10s net cash. This afternoon the Millers' Assaciation have raised their quotations to £l3, but were not aware when doing so that the operations to which we have referred, had been carried through." Next day the same journal reported—- " Consequent upon our report of yesterday morning regarding the operations of the Syndicate formed to corner breadstuffs, the market opened this morning m a state of excitement. It is not quite certain to what extent the recent operations gave been carried, but it is believed that the Syndicate have acquired the control of not much less than 100,000 bags of wheat and between 3000 and 40Q0 tons of flour. Quotations to-day have been very wide, buyers offering from 5s 9d to 6s, holders for the present asking more money. The town millers have again advanced their price to-day, their quotation for roller flour being now £l4. A moderate business has however been done in country' roller at much less money. The market, both in wheat and flour, must, however, be regarded as in a very disturbed condition, and until it settles down to the new conditions it is likely to continue so."