-1^ 



interfere with the present stated plans of the Secretary of Agriculture 

 in connection with the feed grain-livestock program. Farmers are not 

 marketing their corn in large quantities, and processing industries are 

 obliged to pay firm prices in order to. maintain the supply they need. 



Wheat . Under ordinary circumstances, the plan of the U. S. 

 Department of Agriculture to sell wheat for feed would have a price 

 stimulating effect. With the extremely heavy supply of wheat, however, 

 and the wheat loans coming due April 30, no very substantial rise in 

 prices is expected. Owners of stored wheat at the present time csn 

 make some profit by selling in the open market, and if the wheat loans 

 coming due April 30 are not renewed, it is entirely possible that quite 

 a lot of wheat will be marketed before the loans come due. Under these 

 circumstances, wheat prices can not be expected to advance materially, 

 nor would any sell-off be expected. If the price should decline any 

 substantial amount, the wheat would be turned over to the government 

 when the loans became due. 



Soyl^eans . Soybeans receded sharply in price early in the v/eek 



after having reached a new top Friday, January 30. Doubtless the corn 



selling program of the Commodity Credit ConDoration had something to do 



the 

 with this. No very urgent demand for soybeans has been evidenced on/part 



of processors. We are now aopr caching the time of year when soybean 



meal reaches its peak in price and begins to recede as pastures become 



available. The price of oil has risen to the ceiling price permitted 



under present regulations of the Office of Price Administration. With 



no likelihood of any great increase in meal prices during the current 



season, and with oil prices fixed, no great increase in the prices of 



soybeans could be reasonably anticipated. In some exeD.s it is reported 



that beans are not being sold because fa.rmers are keeping all their beans 



for seed purposes. The Commodity Credit Corporation has guaranteed 



