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to place the celling on wheat prices although the terms suggested would 

 call for prices somewhat higher than the current level. 



The price of corn recovered rather quickly from the setback 

 of December 12. This could be accounted for by the strength shown in 

 prices of hogs, beef cattle, and milk. All feed grains seem to be in a 

 rather strong position. Soybean meal was marked down Jj^^.OO a ton early 

 in the week, but has since recovered more than one-half the loss. Cash 

 corn prices are practically the same as a week earlier. Oats has also 

 shown considerable strength. 



The immediate outlook . Barringunforeseen developments, the 

 outlook for the coming week would seem to indicate steady to higher 

 prices for hogs, choice beef cattle, and feed grains. Soybean prices 

 are about high enough if the ceiling on soybean oil is retained at 9 3/^ 

 cents. Mr. Henderson, Price Administrator, has promised to give further 

 consideration to the limits imposed upon fat and oil prices. Should the 

 ceiling price be raised, soybeans could go higher. The increase to be 

 expected would be about 9 cents a bushel for every one cent rise in the 

 price of oil. The price of soybean meal will probably fluctuate with 

 the price of corn, both being in a fairly strong position without any 

 spectacular advance expected for either. Wheat orices could fluctuate 

 several cents in either direction. The loan program is a supporting 

 factor, and the enormous stocks on hand, plus the government's willing- 

 ness to sell, sets a ceiling on wheat prices. Butter prices are not 

 expected to move very much in either direction. This is the month in 

 the year in which butter prices usually reach their peak, followed by a 

 moderate decline every month until the low point is reached in June or 

 July. This year butter prices are being held dovm because of very lar-e 

 storage stocks and continued heavy production. Excellent late past^ores 

 and relatively cheap feeds have been important factors affecting pro- 



