-3- 



1^ 1935, Of course, we have had other periods of high stocit yields, in- 

 cluding the depression periods of I93I and 1932, and the latter part of 

 1937. During those periods, corporation profits were declining rather 

 drastically. That is not the situation at the present time. 



If there is no future serious decline in the stock market, 

 grain prices in general may be expected to hold up fairly well. At 

 present wheat prices, there is no incentive for farmers to ship wheat 

 to market or redeem loan wheat. On the other ha.nd, a higher loan rate 

 is expected for the new crop, so in spite of very favorable orospects 

 and a very serious prospective shortage of storage space, it is doubt- 

 ful if wheat prices will decline seriously. 



Feed grain prices are expected to hold up fairly well. The 

 present actual and potential demand for feed grains is very strong. Hov.'^ 

 ever, the outlook with respect to soybeans is not so bright. With a 

 price ceiling placed on soybean oil at 11 3/^ cents a pound, changes in 

 the price of soybeans must depend upon changes in the price of soybean 

 meal. The base price for soybean meal at Decatur is now $35 ^^ contrast 

 ^o ^39 just a month ago. For every dollar change in the price of a ton 

 of meal, there is a change of about 2-g- cents in the price of a bushel 

 of soybeans. With the pasture season coming on, the demand for meal 

 has declined. In addition supplies of high protein feeds for next 

 season, includin^-^" the principal oilseed meals, copra cake and meal, and 

 gluten feed, are expected to total about I5 per cent larger in 19^2-^3 

 than in 19^1-^2 provided the 19^2 growing season is favorable and farm- 

 ers carry out their planting intentions as of March 1. The supply of 



^t high protein feed per animal will probably be the largest on record. 



Hovjever, the increased demand for all kinds of feed; including high pro- 

 tein feed, will tend to offset the effect of the larger supplies. If 

 the price ceiling is retained at 11 '^/h- cents for soybean oil and high 



