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^^ Soybeans . Production of soybeans for hrjrvest Is expected to be 



1^,2^1-1,000 acres this year, an increase of ^fSi per cent over 19^1. 

 Inasmuch as soybeans are one of the principal crops needed to meet heavy 

 wartime demands for oil and to replace lost sources of vegetable oils in 

 the Pacific, it is imperative that farmers do everything possible to 

 provide storage space for this essential crop. They are urged partici>- 

 larly to hold enough storage space for soyberins when considering their 

 19^2 storage facilities. In the areas approved for farm storage, loans 

 will be available to producers who agree to store beans on their fc?j?ms 

 at 5 cents a bushel above the basic purchase rate, which, for yellow 

 beans of high oil content, is |l.60 a bushel. Not only are soybean -oro- 

 ducers guaranteed this minimum price for farm-stored beans or beans 

 stored in approved warehouses, but they may find the soybean market 

 behaving somewhat as the wheat market is now behaving during the early 

 harvest season. There is such a big crop expected that it would not be 

 surprising to find a large number of farmers obliged to sell at harvest 

 time because of a lack of storage space. The storage fac^lit^es of,4 

 processors are not adequate to store any large fraction of the crop. 



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Farme;?^ who are obligedf to sell their beari's at harvest time may have tg 



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 ac;c'ept a considerable discount under the price that would be obtainable 



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^later on in the season. 



Oats . Oats prices have been relatively stronger than the price 

 of any other important corn-belt grain. Corn prices have hIso been 

 generally steady to strong, but oats were stronger. Probably the reasons 

 for this strength in the Chicago market are — first, that the oats crop 

 in the eastern corn belt has been below expectations. In the north- 

 v;estcrn corn belt the oats crop was excellent, but in this region most 

 of the oats will probably be retained for feeding on the farm. The 

 second reason is the strong demand, both commercial ^nd for feed. The 



