Dollar Wheat?

Last week the Federal Farm Board was back in the wheat market buying futures. Good times, not bad, put it there. There was a crop failure in Russia. U. S. grain prices spurted up and away from the weak security market. Talk of "dollar wheat" got back in press headlines. Farmers, faintly smiling, began paying off long overdue bills. A corner of some kind had been turned in wheat history.

Oct. 5 was grain's Black Monday. Wheat in Chicago wilted down to 44 3/8-c- per bu., an all-time low. Then began the steady slow climb out of the depths. October closed with an average gain of 33% in all grain prices. December wheat went to about 61-c- per bu. adding $67,000,000 to the crop's value in less than four weeks. In the same period corn bounded up 10-c- per bu. with an increased value of $216,000,000. Oats ($40,000,000) and rye ($5.000,000) brought the total increase of grain values to $328,000,000 above what they were on Black Monday. The upswing was also felt, in cotton, with an increase of $6 per bale.

Chicago traders attributed this rise in wheat prices, with other grains tagging along, entirely to the Soviet crop failure. Not only was the Russian production short but grade was inferior. Russia had contracted to supply many a European market with wheat which did not exist. While Soviet officials scrambled to buy back their contracts, France, Germany, Italy turned to the U. S. and Canada for their supply. The Australian and Argentine crops would not come in until January. Meanwhile Europe was reported to have a scant four weeks supply (65,000,000 bu.) of wheat on hand fit for milling.

The Farm Board's sales began to exceed the 5.000,000 bu. per month which it had pledged as its maximum. In order to keep its pledge and not outsell farmers and cooperatives, it re-entered the futures market and bought back enough to average its books down to the 5,000,000 bu. limit.

Farm Board Chairman Stone was overjoyed at the turn of events. He fairly chortled: "Although not making any predictions, I can frankly say that I'm more optimistic today than I've been in a long time."

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