-4- 



The feed outlook s Prospects for this year's crops are still 

 • uncertain. Usually we have no clear line on the size of the corn crop 

 until around the first of August. Based on planted acreages, the total 

 supply of the four principal feed grains in 19^-^3 may be about four 

 per cent below the near-record 19^1-^2 supply. In view of the increase 

 in livestock numbers, the supply of feed grain per animal unit may be 

 about ten per cent smaller than the very high 19^1-^^-2 supply. Pasture 

 conditions have been excellent. The total hay supply, including the 

 carryover and the new crop, is expected to be more than 100 million 

 tons. In some sections the feed value of the hay has been reduced by 

 the heavy rains during harvest. Present prospects point to a crop of 

 oilseed cake and meal perhaps one-fourth larger than last season. 



To sum up — if this is an average croD season, we will have 

 less feed grain per animal unit, more high protein supplements and large 

 supplies of hay. Looking farther ahead, by the end of the corn-market- 

 ing year in October 19^3—15 months from now^-our carryover in corn is 

 likely to be reduced to a normal figure or, in other words, our ever- 

 normal granary of corn will have been liquidated. It served a very 

 useful purpose in our war effort: It permitted a tremendous increase 

 in the output of meat, milk and eggs. To maintain this high rate of 

 production of livestock products after the surplus corn stocks are used 

 up, we must either find a way to draw more heavily on our accumulated 

 stocks of wheat, or we must step up our production of corn and other 

 feed grains. 



The price of corn has fluctuated over the past several weeks 

 at around S6 cents for No. 2 yellow corn at Chicago. The c\irrent rate 

 of consumption of corn is high; the wet process corn industry (starch, 

 corn sugar, etc. ) is grinding about 11 million bushels a month. The 

 distilling industry, converted largely to manufacture of industrial 

 alcohol, is using corn at a high rate. To supply these demands, 



