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greatest euiphaais on wheat fed during the summer months when wheat was subetitvited 

 for com in many regions. Other feed grains were also used to a much greater extent 

 during that 12-month period, including a 57-percent increase in rye ,a 19 -percent in- 

 crease in oats, and a l4-percent increase in "barley fed to livestock. With this very 

 rapid disappearance of grain, it is probable that we shall face another feed shortage 

 in many areas next spring and early sximmer. Not only will this be true in the eastern 

 regions, but parts of the east north-central states, the south central states, and 

 parts of the Pacific coast may be affected. 



Com . Com has be«n coming to market freely enough to take care of the 

 needs of processors. This, for the most part, has been high moisture com which is 

 satisfactory for immediate use but not much good for storage. The government recently 

 relinquished control over the marketing of corn, that is, the destination of com 

 received by local elevators. This was done in order to obtain a freer movement of 

 corn as between the feeders and other industries needing com. It is indicated, how- 

 ever, that in order to build up a backlog of supplies to take care of emergency needs 

 of processors, the government expects to purchase about 52 million bushels of com by 

 June 1. In other cases where the government has built up stockpiles for. the armed 

 forces, lend-loise, and emergency uses, it has done so at the time of flush agricul- 

 tural production. That was particularly true "in connection with butter and probably 

 will be true in connection with pork this winter. However, in connection with com, 

 any stockpile that is built up will have to come from com of reasonably low moisture 

 content that is suitable for storage. That may mean a little more competition between 

 feeders, processors, and the government later on. 



Oats . Oats prices hold up remarkably well as a result of the strong demand 

 for all feed grains. In spite of the fact that the number of horses and mules has 

 followed a declining trend for many years, the demand for oats has been strengthened 

 during the past year by the use of greater quantities gqlng into feed for dairy cows, 

 poultry, young cattle, and breeding stock. More hulled and ground oats are being fed 

 to hogs. ' . • " 



Rye . The disturbing feature about the rye market is an open interest in 

 rye futures far in excess of the amount of rye that could be delivered in satisfaction 

 of these futures. This applies particularly to the December future. The market may 

 therefore be rather erratic. 



Wheat, Efforts continue to be made to provide \dieat for feed. It is 

 reported that five eastern distilleries e3cpect to shift over to the use of molasses 

 instead of wheat for the production of alcohol. The molasses -for-alcohol program is 

 expected to relieve about 68 million bushels of wheat a year for livestock feeding 

 purposes. The Office of Defense Transportation reports about 25 million bushels of 

 grain were transported on the Great Lakes in October to set an all-time monthly record. 

 The railroads have all done a fine Job of transporting grain in spite of the extremely 

 heavy traffic in war materials, 



"Peace" markets . During the past week, developments have contributed greatly 

 to an anticipation for a speedy conclusion of the war in Europe. As a result, we have 

 had a rather serious collapse in the stock market and considerable disturbance in some 

 of the commodity markets. The first thing to remember is that the war is not won and 

 the European phase may not be over before the summer or fall of 19it-U. The Pacific 

 phase certainly will last beyond 19^4-. Inasmuch as the demand for farm products in 

 the United States and the export outlet are based, in part, upon war activities, there 

 is bound to be considerable uncertainty as to prices. Within the past few days, an 

 international relief and rehabilitation organization has been set up, and we shall 

 undoubtedly provide foodstuffs and probably breeding stock to European nations. How- 

 ever, there is likely to be considerable unenqployment as factories now producing 



