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^ ^aln prices . Some improvement has taken place from the level 



reached by grain prices last x^^eek. Wheat prices still contend with the 

 influence of excellent crop prospects and restricted storage facilities, 

 as well as the possihility of the installation of a permit system in 

 connection with all grain shipments to terminal markets. On the other 

 hand the cash price is so much below the loan level that it is expected 

 that producers will not sell any large quantity of cash wheat. If cash 

 wheat sales are limited, there will be less hedging and less pressure 

 on futures markets than would ordinarily be exi:>ected during the early 



< 



harvest season. 



Cash corn prices reached a new high for 19^2 at SS-J cents for 

 Kg. 1 yellov7 corn at Chicago, Monday, May 25 • Prices of corn futures 

 also recovered promptly from the previous week. Quite a lot of corn v/as 

 sold this week for later shi^oment to market, but the demand was strong 

 enough to cause a rise in price. 



Under the Commodity Credit Corporation's wheat-for-f eed selling 

 progran, two price plans are being used. In some cases the feed wheat 

 price is determined on the basis of the corporation's release price for 

 corn. In such cases farmers will be permitted to redeem farm-stored wheat 

 under the loan through June 3^ at the corporation's relee.se price for 

 corn at the producer's delivery point, but not less than 93 cents a 

 bushel. In the sirea where the feed wheat price is determined on the 

 basis of the 19^1 wheat loan value at the point of destination, redemp-' 

 tion shall be at 3 cents more than the 19^1 loan value of wheat. The 

 wheat must be fed to livestock in order to be redeemed at these orices. 

 ^^ Vfneat and corn for rubber , Beca.use of the very serious 



rubber shortage that is likely to develop in the near future, attention 

 has been given to the possibility of manufacturing synthetic rubber 

 from grain and other farm products. Secretarj^ Wickard, in discussing 



