Grain

Heavy Wheat Receipts Weaken Market

Heavy receipts of new wheat at the central western markets weakened the wheat market toward the close of the week July 28-August 2. More favorable weather in the Canadian spring wheat area and continued favorable weather in the United States were also weakening factors. While the official report of the wheat crop August 1 is not yet available information from the trade indicates further increases in the United States wheat crop and suggests that the total crop this year may be as large as that harvested last year.

Wheat crop prospects in European countries were about unchanged during the week and the world's wheat crop in the Northern Hemisphere outside of the United States and Canada from present prospects will be about 200,000,000 bushels less than last year.

The best trade estimates of the Canadian crop now are that the crop this year will be between 60% and 75% of last year's crop, which, it must be borne in mind, was an unusually heavy one, and that even if the present crop is as small as indicated it still will be as large as the average crop in Canada a few years ago.

The smaller crop in Europe is likely to create a better export demand for our wheat, but at the higher price levels it is doubtful whether these countries will take as much wheat as they took last year when prices were relatively lower.

There have been rumors of black rust in the spring wheat territory but latest official reports indicate that very little damage has been done to date and as harvest will begin in about a week and the weather is unfavorable for rust development it is thought that the danger of any serious damage is unlikely.

The movement of hard winter wheat was well under way at the close of the week and was very heavy. Receipts at Kansas City for the week were the largest on record. This heavy movement of wheat weakened the cash market. The future market held fairly firm throughout the week, but at the close September wheat at Chicago was about 3 below the close of the previous week, being quoted at $1.322. September wheat at Minneapolis was only about 3/4 lower for the week while at Kansas City the decline was about 3.

Cash premiums were lowered materially at practically all of the markets and were the lowest for about two years at Kansas City, where No. 1 hard winter wheat sold around 1 under the September delivery price and No. 2 hard winter at 2¢ under the September. The high protein wheats continued very firm and 13% was quoted 5¢-7¢ over the September basis at Kansas City. Mills were heavy buyers of wheat through

out the week attracted principally by the lower premiums. Reports indicated, however, that mill stocks were beginning to be rather large and that mills had been less active buyers because of this fact and the difficulty they were having in increasing their flour sales.

Fairly large sales of wheat for export were made during the week principally for shipment via the Gulf. Premiums for export were better than for several days and No. 2 hard winter was reported sold on a basis of 634¢ over the Chicago September price f. o. b. vessels at Gulf.

The movement of soft winter wheat also got well under way during the week, but receipts of this wheat were not so large because of the short crop. Farmers in several sections were said to be storing the better grades of winter wheat and shipping the lower grades to market. This condition seemed to be reflected in the price of soft winter wheat at St. Louis. At Cincinnati and Toledo, however, the new wheat arriving was in good condition. Southern and southeastern mills were active buyers of the soft winter wheat not only of the spot grain but of grain to arrive. This active demand is thought to be caused by the efforts of mills to lay in a good supply of high-grade wheat while the movement is of good volume, expecting receipts to become lighter after the first movement of the new crop. Shippers in Ohio and Indiana were underselling western shippers and prices at St. Louis were forced to a lower level to compete with these shippers.

The spring-wheat markets were rather dull and offerings were well taken care of. No. 1 dark northern at Minneapolis sold at 36-22¢ over the September throughout the week with No. 1 northern quoted at the September price to 14 over. Not much activity was expected in the spring-wheat market until new wheat began to move.

The market for durum wheat was firm and the milling demand good. No. 1 amber was quoted at 5e-7e over the Duluth September price, which closed August 1 at $1.27.

CORN MARKET REACHES NEW HIGH LEVELS

The corn market continued its upward trend during the week and new high levels were reached on August 2 when September corn at Chicago reached $1.144 per bushel. The market receded from the high point, however, and the net gain for the week was about 3e. The light receipts at most of the markets together with the prospect of a small crop continued to Weather conditions be the principal strengthening factors. continued favorable over a good part of the Corn Belt throughout the week and the crop made good progress in most sections. Estimates by the trade were that the improved weather conditions had added possibly 100,000,000 bushels to the July 1 estimate of 2,515,000,000 bushels.

The higher prices began to restrict the demand toward the close of the week, but because of light receipts the arrivals were readily absorbed at most of the markets. Chicago and St. Louis led in the volume of receipts and at the latter market a large percentage of the current receipts toward the close of the week were carried over unsold.

While cash prices at most of the markets averaged 26-36 higher for the week they did not follow the full advance in futures, which was about 9¢ per bushel. Industries which had been active buyers early in the week became less active as prices advanced. Feeders also began to withdraw from the market and to transfer their purchases to oats and other grain substitutes. Cash prices at the close of the week for No. 3 white and yellow corn ranged around $1.06-$1.08 at Kansas City; $1.09-$1.12 at St. Louis; and $1.12-$1.13 at Chicago.

The bats future market was about 1e higher for the week in sympathy with corn, but cash prices did not follow the future market and No. 3 white oats sold 16-2é lower at the principal markets. The movement of new oats was becoming more general in the Central Western markets. The first car of new oats at Omaha was received during the week.

While buyers have been taking only sufficient oats for their current needs and have been awaiting a heavier movement of new grain there were indications that the demand for new oats would become active because of the high corn prices and the efforts of feeders to substitute oats for corn.

The rye market advanced sharply during the week and No. 2 rye at Minneapolis on Friday was quoted 89-8934€ per bushel. New rye was beginning to arrive on the market and the quality of the early receipts was excellent. Mills were more active buyers of the new erop grain to arrive than of old rye principally because of the better quality of the new grain. There was an improved foreign demand also for rye during the week and foreign buyers are likely to continue fairly active because of the smaller European erop.

The barley market was practically unchanged.

Hay

Timothy Market Develops Weaker Tone

The timothy markets developed a weaker tone during the week July 28-August 2, as receipts of new hay became more abundant in the markets. While receipts generally were not unusually large, the demand was rather limited and was not sufficient to absorb the arrivals, particularly of the low-grade hay in a number of the markets.

The price trend for all kinds of hay has been downward during the past two or three weeks, but the average price at the close of the week was practically the same as at the corresponding time last year.

The market situation at Boston was practically unchanged during the week. Receipts had become very light and had a tendency to strengthen the market. The purchases, however, were confined mostly to the immediate needs of the trade. Some good hay arrived from Maine and Canada, but there continued to be a good amount of poor hay which was almost unsalable.

At New York receipts were unusually large and stocks in that market were in excess of the immediate requirements of the trade, resulting in a price decline of about $1 per ton for the week. A large percentage of the offerings were of small bales of No. 2 or mixed grades of hay. This hay was difficult to sell, as most buyers wanted the large bales of No. 1 hay. A few cars of new hay arrived and sold about $2 under the price of old hay.

While receipts at Pittsburgh were very light there was very little demand and the dealers had difficulty in disposing of the current offerings. A few cars of new hay arrived in good condition and sold from $18-$21 for good No. 2 timothy.

A dull and easier market prevailed at Cincinnati where receivers were having difficulty in disposing of the new hay,

much of which was arriving warm and heating. There was a wide range of prices between the old and new hay, new No. 1 timothy selling about $5 below old No. 1. The wide difference in price, however, attracted buyers to the new hay and a sufficient demand developed from that to keep the market fairly well cleaned up and prevented any serious congestion. Reports of hay in transit to the Cincinnati market indicate that offerings during the next week would continue to be of good volume.

Light receipts of hay at both Chicago and St. Louis caused a very firm situation at those markets, which was materially different than the situation in markets farther east. At Chicago the total receipts for the week were only 105 cars, 99 of which were timothy. The receipts were scarcely sufficient to meet the current demand and toward the close of the week there was a very strong market for any hay of good quality. A good percentage of the receipts was of new hay and the best grades of this hay also sold readily. The retail trade was particularly active in the market for new hay. Reports of county loadings for that market also continued light and a firm market At St. Louis was expected until receipts became heavier. prices advanced 50-$1 per ton for good new timothy, hay and good quality old hay was scarce and wanted. Much of the new hay arriving was out of condition and was difficult to sell. Southern demand continued of small volume. With good pasturage in most sections of the South and with a good production of native hay being harvested there was a very small demand for western and northern hay. Prices at Richmond were $1-$2 lower and considerable old hay was being carried over in that market. Stocks were about normal at Atlanta but they were beginning to show some increase as the movement of new hay became larger. There was very little demand for old hay at Savannah.

The drought on the Pacific coast has created a very active demand for alfalfa hay in that territory and also in the producing areas in the Southwestern States where the supply of alfalfa was being drawn upon to supplement the short crop in California. Temporarily the supply of alfalfa is being supplemented with grain hay which has been a fairly good crop because considerable grain was cut for hay which did not mature sufficiently to be cut for grain. The supply of this hay, however, is being rapidly reduced and if the drought continues a serious shortage of hay is expected.

The fourth cutting of alfalfa was under way in Arizona with weather conditions favorable for cutting the crop. No. 1 alfaifa was selling at $17.50 per ton f. o. b. shipping points in that territory.

At Kansas city and other central western markets there was a good demand for both alfalfa and prairie. Mills were good buyers of all classes of alfalfa while feeders in the surrounding territory took the sound brown feeding hay and local dairies were good buyers of the dairy quality hay. There was a good demand from the South for good quality alfalfa during the week but dry weather in the Delta country which tends to cause a short cotton crop was restricting buying of hay for shipment to that section.

Feed

Feed Market Developed Nervous Tone

The feed market generally developed a weaker tone during the week July 27-August 2. Increased production of wheat mill feeds, together with the continued light demand from consuming sections, caused the market to be in rather a sensitive position.

Dealers and jobbers are not inclined to go beyond current requirements in purchasing supplies. Because of the light offerings rather than any increased demand, the linseed cake and meal market held rather strong with price trend slightly higher. Cottonseed meal market firm at quotations with business extremely dull.

Wheat milljeeds. Prices quoted for wheat mill feeds have not changed materially during the past week but the market appeared to be rather sensitive. Southwestern mills were grinding rather heavily and the offerings of both bran and middlings were considerably freer. Indications are that the Northwestern mills will shortly increase production. These factors had a tendency to check the speculative buyers whose heavy buying it is reported was responsible for the strong feed prices. Large feed mixers and other operators were very conservative in their purchases, buying mostly for spot and quick shipment and delaying purchases for distant shipment. The prices of both bran and middlings at Kansas City sagged slightly during the week. Stocks of wheat mill feed at lake ports' storage are reported as fairly heavy. The demand from consuming sections continues extremely light, especially for the lighter feeds. Because of the high prices of corn, middlings and heavier feeds were in fair demand. The demand in eastern markets was only fair, offerings were liberal, and resellers seemed quite anxious to dispose of their holdings at present quotations. Mills throughout the East are grinding local wheat and these mills, therefore, were supplying to some extent the wheatfeeds which the trade in that section was using. Shipments of feed from Minneapolis during the week were: 15,531 tons as compared with 14,475 tons last week; and 13,166 tons last year. Mill-feed shipments since January 1 were 412,521 tons, compared with 357,827 tons last year.

Cottonseed cake and meal.-The feeding demand for cottonseed cake and meal was rather dull during the week. The trade was not inclined to take hold freely for October, November-December delivery at the price of $40 per ton for 43 per cent meal Texas common points. Some export inquiry developed during the week; although bids were $2 per ton under price asked, mills were not willing to accept bids. Most of the inquiries were from England and Scandinavian countries and were for new crop futures. The first offerings of new crop meal were made in eastern markets during the week. The price, however, was from $6-$8 per ton above those of last year

and the jobbers are not as yet disposed to make contracts for future shipments.

Linseed cake and meal.-The stocks of linseed cake and meal were generally low and this, together with restricted production, caused the market to hold strong. The price of meal at Minneapolis was $1 per ton to over last week. Crushing operations were very light and a big share of the week's shipments from Minneapolis were made from mill stocks. Linseed cake and meal shipments for the week from Minneapolis were 2,716,559 pounds compared with 2,295,735 pounds last week, and with 3,754,245 pounds last year. Resellers who have been cutting mill prices became practically sold out and fresh offerings from mills have been limited. Demand at Buffalo was fair for both domestic and export with offerings inclined to be restricted. The larger mills in that market were sold up for the next two or three weeks and the other mills had only a limited tonnage to offer. Stocks and movement good.

Gluten feed.--Because of the continued upward trend of the corn market the larger gluten feed manufacturers raised the price of gluten feed $1.50 per ton. The demand for this feed continued extremely light from both manufacturers and the consuming trade.

Hominy feed. The advance in corn prices rather than demand held the hominy feed market fairly firm and while mills, because of the light production, are well sold up, resellers are offering this feed freely and are finding it rather difficult to obtain the high prices asked. Hominy feed failed to show much strength as a result of the firmness in corn and prices were barely steady. The demand was rather slow and supplies ample for the moderate demand.

Alfalfa meal.-Because of the sharp increased offerings of alfalfa meal by western mills, particularly those in Colorado and Kansas, the market weakened somewhat during the week. Hay supplies were abundant and mills were pressing meal for quick sale. Mixers were buying, however, rather sparingly and showed lack of interest in future shipments, even when offers were available on the same basis as spot.

Prairie Hay Market

Stockyards and local feeders were the principal buyers of prairie hay at most of the markets. The price level remained practically the same as for the previous week. At Kansas City receipts increased materially but a good demand from the stockyards, transfer companies, and shippers was sufficient to absorb the current receipts. The prairie market at Omaha continued very dull. Pastures in the surrounding country were good and there was very little shipping demand. While there were no accumulations in the railroad yards, the current receipts were rather difficult to sell and prices were slightly lower as the new crop was becoming larger. The stockyards at South St. Paul began buying new prairie hay during the week and tended to strengthen the Minneapolis and St. Paul markets. Much of the better prairie hay was being consigned direct to the stockyards while the poorer grades were being consigned to commission houses for sale on the market. The offerings of this lower grade hay tended to weaken the market.

Cotton prices during the week July 28-August 2 were extremely sensitive with prices swinging within wide ranges, finally resulting in declines of 1 to 12 per lb. The market was again interpreted as being wholly a weather affair with reports from Texas holding the attention of the entire trade. High temperatures and continued drought remained unbroken and the least indication of the probable breaking up of this condition had a depressing effect on prices, whereas on the other hand reports of no relief caused prices to advance. Many private reports as to the probable size of the 1924 crop were made public and ranged from 11,500,000 to a little above 12,700,000 bales. On Monday July 28, October future contracts on the New York Cotton Exchange closed at 29.34¢, compared with 29.356 on July 26, and closed at 28.28 on August 2, which final figure compares with 22.60¢ for the corresponding day in 1923. October future contracts on the New Orleans Cotton Exchange closed at 27.52¢ as compared with 28.496 on July 26.

Southern spot markets reported the demand for old crop cotton as only fair with the inquiry for fall shipments also limited with the basis somewhat weaker than that of the previous week.

The average of the quotations for No. 5 or Middling cotton in 10 designated spot markets on August 2, was 29.30 per lb. compared with 30.80 on July 26. On August 4, 1923 the average price for Middling in the same 10 designated spot markets stood at 23.04.

Fall River reported an increased volume of business with a more optimistic feeling, many merchants believing that the textile situation has turned definitely for the better. On the other hand, however, it was reported that both converters and distributors have been reluctantly meeting price advances that have recently occurred. Reports from English textile manuThe final seafacturing centers indicated a better demand.

son's exports to Great Britain were nearly 425,000 bales more than for the corresponding period in 1923.

Closing Future Prices on the Future Exchanges

August 2, 1924, with Comparisons

5-year

5-year

1 Not available.

Exports of American Cotton

August 1, 1923, to July 31, 1924, with Comparisons (Compiled from Government and commercial reports]

12. 14 31. 27 27. 52

21. 97

20. 62

11. 66 30. 31

December.

27.62 22. 56 21. 12

12.65 30. 00

27. 50

22. 07

20. 65

12.00 29. 35

average

1922

Aug. 1

cent this

1923

July 27, July 31,

July 27, year is

1919-20

1914

1921

1922

1923

of 4

1924

Germany

2, 877, 8931, 326, 405 1, 438, 369

969, 643 1, 288, 338 1, 047, 883

1229

Italy..

Japan..

500, 025

484, 066 540, 961

340, 195

632,513

807, 301

606, 655

546, 392

2, 978

75,971

89, 436

19, 124

286, 039

256,849

310, 763

221, 038

209, 660

200, 831

143, 110

Cls. Cts. Cts. Cts. Cts. Cts. Cts. Cls. Cts. Cls. 31. 00 30. 63 29. 75 30. 38 29. 38 29. 50 21. 25 21. 44 22. 63 22. 50 30. 38 30. 00 29. 25 29. 88 29.00 29. 31 22. 00 21. 88 22. 75 22. 75 30. 58 30. 25 29. 50 30. 12 29. 18 29. 28 22. 00 21. 75 23. 00 22 75 (1) 29. 50 29. 25 28. 25 28. 88 28. 00 28. 50 22. 25 22. 00 23. 00 23. 00 (1) 30.00 29. 50 28. 75 29. 42 28. 60 28. 88 22. 00 22.00 22. 73 22. 75 (1) 30. 50 30, 50 29. 50 29. 50 29. 00 29. 00 23. 00 22. 50 22. 75 22. 75 (1) 31.00 30. 75 30. 00/30. 25 29. 25 29. 50 22. 75 22. 75 23. 50 23. 25 (1) 23, 25 31. 35 31.00 30. 25 30. 40 29. 45 29. 55 21. 50 21. 45 22. 65 22. 50 (1) 22. 65 31.00 30. 65 29. 9030. 50 29. 50 29. 50 21. 75 21. 75 22. 90 22.75 (1) 23.15 31.90 31. 15 30. 15 30. 75 29. 75 30. 00 22. 15 21. 90 23. 15 22.90 (1) 23.25

Average... 30. 7230: 37 29. 53 30. 01 29. 11 29. 30 22 07 21. 94 22. 91 22. 79

1 Market closed.

75

23.04

Exports for the week ending August 1 amouted to 55,301 bales, compared with 33,160 bales the previous week, 49,976 bales for the corresponding week in 1923, and 33,202 bales for the week ending July 31, 1914.

Quotations reported on August 1 for Pima AmericanEgyptian cotton f. o. b. New England mill points were as follows: No. 1 gra de,, 44¢ per lb.; No. 2, 436.

Total. 9, 187, 364 5, 731, 801 6, 223, 9384, 798, 327 5, 803, 325 5, 830, 137

99.6