"TT V/r:^'T"V.,^-r^T ---'■■■■■«" ^■■'W. ' 



-3- 



Mk year earlier. There was a net out-of-storage movement of 3S million 

 pounds for December comprured with the five-year average of 29 million 

 pounds leaving storage between December 1 and January 1. Even with the 

 rapid reductions in storage stocks, supplies were still excessive. No 

 special inducements are being offered farmers to increase butter 

 production. 



Stocks of cheese in cold storage were 202 million oounds 

 January 1 compared to I30 million pounds a yeejr earlier. I3 million 

 pounds more cheese went into storage in December than were removed. 

 ' Although butter prices are ap"oroximately four cents a pound higher than 

 they were a yecjr ago, the prices of corn and other feeds have risen 

 much more r^upidly tha,n the price of butter, so that the feeding ra.tio 

 is less favorable. However, the demand for cheese and other manufactured 

 dairy products has been supported by lend-lease activities to such an 

 extent that the milk-feed ratio is relatively more favorable than the 

 butterf at-f eed ratio. Prices of cheese and dry skim, milk will be 

 supported at SR per cent of prj?ity. 



Protein suio-olcment trices. The -oricc of all kinds of -orotein 



I. — .I ■ - ■ I ■ ■■ ■ ■ I A . * ■■ ■■ ■■ ■ „ . — .■■■ I^.l^tl 1. I I ■! I MM ■ m "^ * 



supplements rose last Monday in response to the more inf lationrjry 

 features of orice control legislation. Prices of millfeeds advanced 

 one to two dollars a ton, and soybean m^eal was marked up one dollar a 

 ton. Soybean meal prices were marked dov/n ■^2.50 a ton Thursday. On 

 the basis of the average January relationships for the three yerj?s 

 193^-39 "to 19^0-^1, a ton of cottonseed meal at Kem-ohis could be ex- 

 pected to be worth about ^6.3 bushels of number three yellow corn at 

 Chicago. At the present time numxber three yellow corn is worth about 

 23 cents, which on the basis of the -orevious relati'^nships would call 

 for a price of |;3^ ^ ^on for cottonseed meal in Memphis. The present 

 price is about 5^0. In other words, the demand for -orotein supple- 



