A- 



^9 The wheat crop estimate is considerably higher than the 



estimate a month earlier. The yields in the Great Plains Area are 



excellent and more than offset the declines in the soft-wheat bell of 



> 



Indiana, Illinois, and adjoining states. The terminal markets in the 

 principal wheat belt are loaded with wheat in storage, and Kansas City 

 placed an embargo upon free wheat Wednesday. There has been a permit 

 system in operation in all the principal grain belt terminal markets, 

 including Chicago, for storage wheat for some time. It was necessary 

 to obtain a permit before shipping grain to these markets for storage; 

 however, free wheat, that is, wheat sold for cash and not for storage, 

 has been handled without a permit system up to the present time. To 

 date, no permit system has been established in Chicago for free wheat 

 so long as it comes from Illinois, Iowa, Indiana, Minnesota, and 

 Wisconsin unless from terminal markets in these states. No v/heat can 

 come from the area west of Kansas City to Chicago without a permit. A 

 federal embargo requiring permits for both cash and storage grain seems 

 imminent for Chicago, St. Louis, and other grain-belt terminal markets. 



Some time ago, the Senate passed a bill authorizing the 

 G-overnment to make loans on principal farm products equal to 100 per 

 cent of parity. However, the House has not considered this bill. The 

 first reaction to the House approval of the sale of 125 million bushels 

 of v/heat at S5 P^r cent of parity price for corn was a v^eakening in the 

 entire market. That occurred Wednesday about noon. However, there was 

 a quick recovery of almost 1 cent a bushel for wheat and some improve- 

 ment in corn prices. Thursday's decline in price was probably more the 

 ^result of the President's stand against inflation than as a result of 

 the wheat-f or-feed selling program. The President's stand probably was 

 interpreted as sounding the "death knell" to any proposal for 100 per 



