-3- 



duction. Egg prices have fluctuated from week to week. During the past 

 week they have shown considerable weakness, but a cold snap could cause 

 a substantial recovery in prices. We have had an open winter and egg 

 production has been heavy. Fresh eggs dropped 34 cents in price Wednes- 

 day to 332*-3^ cents, which was 64" cents under the twelve-year peak 

 reached in November. Thursday it was reported that the government had 

 reentered big wholesale trading centers for fresh eggs, and the price 

 shov/ed some recovery. 



The effects of the war . War news from Europe and Africa has 

 been very encouraging, but the situation in the Pacific is not so clear. 

 It has been reported that the sinking of merchant ships in the Atlantic 

 has fallen off considerably in the last fev; months, and as a result 

 there are some reductions in marine insurance rates this week affecting 

 shipments in the Atlantic. The regular sea lanes to the East Indies 

 are of course closed, and shortages are likely to develop in connection 

 with those commodities for which we depend upon the Orient. Such com- 

 modities will probably be placed under government control, and supplies 

 allocated in such a way as to promote maximum war efforts. Tropical 

 vegetable oils are the only commodities affected that compete seriously 

 with corn-belt products. 



•.'Jith plans under way for a greatly increased armed force, the 

 demand for foodstuffs is expected to increase. Althou^ hog numbers 

 and the production of all animal products are expected to increase, the 

 improvement in demand will provide satisfactory returns to corn-belt 

 farmers. 



G-overnmental activities affecting prices. Saturday, December 

 12, the Office of Price Administration issued an order establishing 

 ceiling prices on several hundred fats and oils, including lard, soybean 

 oil, and cottonseed oil, but excluding butter. Maximum prices are those 



