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Weekly Market Review and Farm Outlook - page k-, 



possible by the availability of bank credit. With our present system 

 of priorities and price ceilings, it is hoped that the spiral of 

 increased- costs and increased prices will not get under way .as it 

 did during the first World War. 



One ch6G?act eristic of the present situation is the extremely 

 high level of construction contracts that have been let during recent 

 months. A large fraction of these contracts is for federal projects 

 related to defense efforts, but it is one of the surest signs we have 

 that the demand for farm products is likely to be maintained at a 

 very high level for at least several months. 



Commodity prices - Prices of all grains have shown a sub- 

 stantial recovery during the last few days. 



Although the terminal storage space is filled with wheat, 

 the latest reports indicate that there is no pressure at the present 

 time caused by wheat coming to market. With a fair milling demand, 

 the price has tended to stabilize and even to strengthen somev/hat. 

 It is reported that Russia has probably bought at least 2 million 

 bushels of wheat from Canada through London, and that they may buy 

 more wheat and rye from North America. The wheat crop in Argentina 

 probably will not be as large and depressing as last yeaj?. The 

 present cash price is belov; the loan price, and it is doubtful if, 

 barring any disastrous war news, there will be much futher decline in 

 the price of wheat in the near future. 



All feed grains are in a rather strong position, and prices 

 are likely to hold up well even during corn harvest. The government 

 has purchased some corn for lease-lend purposes, but the strongest 

 influence comes through the present heavy feeding program which is 

 rapidly reducing government holdings of old corn. 



