



Cooperative Ertenelon Work in Agriculture and Hcono Econonlcs 

 University of Illinois College of Agriculture, Urbana, Illinoie, jn 

 and U, S, Department of Agriculture cooperating 



WEEKLY REVIEW AND -FARM OUTLOCK LETTER 



By G, L. Jordan 

 Profeeeor, Agricultural Economics 

 University of Illinoie 

 College of Agriculture 



(Prepared September 30 ) 1^"^^ 



As hog receipts picked up, prices declines during the past week in anticipa- 

 tion of the $1^4., 75 ceiling which becomee effective Monday, No serious collapse in hog 

 prices is expected if orderly marketing is practiced. Steer prices were steady, 



Aa a result of the urgent need for more old crop com in ccanmercial channels, 

 the government renewed its promise to pay farmers the difference between present ceil- 

 ing prices and any higher ceiling prices allowed through November 30. It applies to 

 all com sold by these producers to elevators for the account of the Commodity Credit 

 Corporation and delivered between September 28 and October 31, 



It has been reported that farmers are planning to "hog down" lots of com 

 this year because of the shortage of labor. Although profitable to the hog grower, it 

 will tend to prevent the shifting of more corn to dairy cows and to commercial channels. 

 The tight feed situation is reflected in climbing' oats prices. 



Wheat prices rose this week. Probably the strongest stimulemt was received 

 from the action of the House Agricultural Committee at Washington in approving a 100- 

 T>ercent parity floor for all war essential crops. Another stimulating Influence was 

 ^^^;M:he discontinuance of trading in wheat at Winnipeg, The fact that the Canadian Wheat 

 \poard set the initial payment on wheat to producers at 35 cents above the original 

 ^arantee seemed to convince the trade that wheat was in a strong position. Another 

 factor has been the heavy feeding of wheat which has tended to reduce our surplus very 

 substantially during the past few months. On the other side of the picture, we have 

 the flour ceilings which limit the prices that the millers can pay for wheat^ and the 

 possibility that the bill pending in Congress that would permit the importation of 

 wheat from Canada by cnmmerclal concerns for three months without the payment of import 

 duty will become law. Inasmuch as the country is not in a critical position vlth re- 

 spect to wheat supplies, it is doubtful that the federal government will be willing to 

 permit a rise in wheat prices. 



The critical butter situation is being brought to the attention of consumers 

 in the most forceful manner possible, that is, raising the point value of butter. The 

 basic difficulty is that it is more profitable to feed com to hogs than to dairy cows. 

 As a result, our output of dairy products has declined. Also a larger fraction of the 

 total output of milk Is being used as fluid milk. 



In order to help fanners meet their V)hh production goals, the War Food 

 Administration announced Tuesday that new regulations will provide for the unlimited 

 manufacture and sale of repair parts and the distribution of twice as much new farm 

 machinery next year as in 19^3 • 



-0- ■ 



