^ induce farmers to feed out their hogs to heavier weights. All this 

 indicates a very strong demand for corn and would also indicate that 

 under these circumstances corn stocks might be expected to be reduced 

 materially before the new crop is ready for harvest. 



Mr. Hut son made it quite clear that the Commodity Credit 

 Corporation, at the request of the Secretary of Agriculture, is in a 

 position to, and will, sell wheat for feed in order to hold down the 

 prices of feed grains. Present plans call for the selling of 100 million 

 bushels of wheat for feed at a price of ^6 cents delivered in this area 

 for whole wheat, or 90 cents for cracked wheat. However, this wheat is 

 not being purchased by farmers in this area, but is being sold in the 

 Eastern markets. It would, of course, be illogical to ship corn east- 

 ward from Illinois and ship wheat into Illinois for feed. For the few 

 days tha.t the wheat for feed selling campaign ha.s been under way, Mr. 

 Hutson says that the sellings have exceeded original expectations. 

 Although the plans now call for selling this 100 million bushels of 

 wheat for feed, the Commoditj'" Credit Corporation has enough wheat on 

 hand to increase their sales for this purpose very materially and would 

 seem to be willing to dispose of this wheat at a price which would tend 

 to hold the price of corn near ^5 V>or cent of parity. If this wheat is 

 made available and weather conditions this summer are favorable for the 

 production of the quantity of crops contemplated in the revised 19^2 

 goals, I have come to the conclusion that corn prices will not rise 

 materially above ^5 per cent of parity. Of course, parity price may 

 increase as the costs of commodities farmers buy increase.- The present 

 hog-corn ratio at Chicago is lU-.l which indicates that corn prices are 

 plenty low enough to induce heavy feeding. Another factor which must be 

 taken into consideration but which is unpredictable is the attitude of 

 congressmen and senators tovrard this progrr-jn. I doubt if that will 



