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top and were generally weak. Because of exceptionally favorable crop 

 prospects, near-by cash corn and oats prices are likely to be stronger 

 than prices of deferred futures, but both may decline somewhat. 



Grain * Prices of all grains except rye and soybeans averaged 

 higher during the past week than during the previous week. Wheat prices 

 are subject to two influences working in opposite directions. Wednesday, 

 the U.S.D.A. estimated total wheat production for 19^2 to be S66 million 

 bushels compared with 9^6 million bushels last year, and a 10-year 

 average, 1930-39 > of jk^ million bushels. The carryover of old crop 

 wheat was estimated to be 630 million bushels. When the new crop is 

 harvested, we should have a supply of wheat on hand large enough to 

 last us two years. A factor operating in the other direction is the 

 effort of Congress to require a government loan to farmers at IOC per 

 cent of parity instead of the present ^5 P©^? cent of parity. In addi- 

 tion the war news is blowing hot and cold v/ith most of the recent news 

 being favorable to the United Nations. Under these circumstances, a 

 price swing of several cents a bushel may be expected. In general, 

 however, the outlook is for somewhat higher prices of wheat, if, for no 

 other reason, because the present price to farmers is so far below the 

 loan price. 



There will undoubtedly be some distress wheat reach the 

 market because the producers are unable to find storage space. However, 

 the Department of Agriculture announced June S that the Commodity Credit 

 Corporation had contracted for construction of 26,6lO wooden grain 

 storage bins, having a combined capacity of approximately 6c million 

 bushels. Half of the bins are to be delivered during June, and the 

 other half during July. Negotiations are proceeding for the construc- 

 tion of facilities to accommodate an additional ^10 million bushels for 



