-2- 



us the impression that the U. S. Department of Agriculture was determined 

 to see that the price of feed grains, particularly corn, was held down 

 at a figure low enough to encourage the great increase in production of 

 livestock products called for in the 19^2 goals. The present thinking 

 is that it will be necessary to keep these feedstuff prices down to 

 about S5 per cent of parity. Mr. Hutson was much more optimistic concern- 

 ing the ability of the government to keep these corn prices dox^m than I 

 was in last week's market review. Ho went on to point out the large 

 stocks of feed grains on ha.nd at the present time which we recognize as 

 being the largest on record. The disappearance of corn and oats in the 

 last quarter of 19^1 was only slightly larger than the last quarter of 

 19^0. 



With the increase in hog numbers that will result not only from 

 the larger 19^1 fall pig crop but also from the very great expansion in 

 this springes pig crop, the disappearance for 19^2 is expected to exceed 

 by rather wide margin the disappearance in 19'^1. Not only will there be 

 this great increase in hog numbers but we shall continue to feed dairy 

 cows for maximum economical production and numbers of cattle of all 

 kinds are expected to increase rather than decline. Just Wednesday, the 

 Office of Price Administration raised the ceiling price 1.^95 cents for 

 new cash lard. The ceiling price on loose lard was raised .675 of ^ 

 cent, and on leaf lard .^9 of a cent. For steam rendered pork fat .79 

 of a cent increase was allowed. The previous ceiling had been at the 

 October 1, 19^1; bid price. This upward revision in the price of lard 

 is significant and indicates the need for a considerable expansion in 

 the production of edible fats a.nd oils. Doubtless this increase in the 

 price of lard vjas made in order to induce packers to trim their cuts 

 more closely so as to obtain a larger percentage of lard per hundredweight 

 of carcass. It will have the effect also of permitting packers to pay 

 relatively higher prices for heavy weight fat hogs, which in turn may 



