The absence of speculative support has probably been the largest factor
in the weaker country markets, and the reflection of this weakness in
the distributing markets. Moreover, movement into consumptive channels
has not been active for some time. As storage demand has been lacking
and the primary markets have been showing signs of weakening, most
buyers at distributing points adopted the policy of hand-to-mouth buying
in anticipation of lower prices. Advices at the end of the week
indicated that some dealers do not look for a revival of trade until
prices at country points reach 16¢, about 2¢ below present prices.
However, this sentiment is not universal, and many dealers think that
present prices may not be far from bottom.
Embargoes on railroad shipments of perishable foodstuffs in the southern
and southwestern sections of the country have reduced shipments below
normal requirements, and until the rail strike is ended but little
support is expected from those sections. In fact, many in the trade
believe that while the strike may cause higher prices in certain
consuming centers where supplies are exhausted, embargoes on shipments
will tend to weaken the primary markets because of curtailed outlets.
At the close of the week the tone of the market was barely steady.
Holders were free sellers, and in many instances were inclined to make
concessions in order to keep stocks as low as possible. Little export or
import business was reported, although small shipments of Split Twins
were imported from Canada. However, both the export and import business
was of small consequence and did not affect the market. With production
in excess of consumption and speculators off the market, many in the
trade expect an unsettled market accompanied by lower prices.