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w cent of parity loans. From the longer time point of view the develop- 

 ments diirlng the past week would suggest the f ollovring: 



1. There is an enormous amount of wheat, but at present 

 discounts of the cash price under the loan price all of this will go 

 under loan to the extent that storage space can be provided and the 

 quality of wheat permits. 



2. The Government has been selling wheat for feed, and the 

 new lav7 does not provide for sales at much lower prices than now prevail, 



3- The provision to sell wheat may tend to hold dovrn the 

 price of corn which otherwise would probably have continued to rise. 



^. CJovernment loans are not likely to be revised upward to 

 any appreciable extent except as parity prices rise. 



5- Livestock production is likely to continue to be profit- 

 able as a result of relatively low feed prices and prices for animal 

 products at about the ceiling levels. 



6. \Vheat prices are likely to rise after the present forced 

 sales are over by farmers who are unable to find storage space. Once 

 wheat gets into storage it is not likely to be sold at a price much 

 below the loan price. 



7. The demand for soft red winter v;heat is likely to be 

 quite strong and a substantial premium for this type of wheat may be 

 expected. 



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