WEEKLY MARKET REVIEW AND FARM 0UTL0(2C 



By G. L. Jordan 

 Professor, Agricultural Economics 

 University of Illinois 

 College of Agriculture 



(Prepared December 2) 



(Highlightj^-^f the Weekly Market Review and Farm Outlook are broadcast each Friday 

 from 12:li-8 W- 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 58O 

 kilocycles. ) 



Commodity Prices at Chicago 



Cash 



Wednesday 

 December 1. 191+3 



December futures 

 (close) 



Week ago 



Wednesday Week ago 



Wheat (No. 2 hard red winter) 

 Corn (No. 3 yellow) 

 Oats (No. 5 white) 

 Butter (92 ecore) 

 Eggs (current receipts) 

 Hogs (top prico paid)x^ 

 Cattle (top price paid)^ 

 Hog- corn ratio, Chicago, 

 November 27 ' 



$ 



t 



.kl* 

 .1+21+ 



15.75 

 17.00 



12.6 



12.7 



♦Ceiling prices 

 **TradinG in corn futures is not permitted 



Corn ceilings . Tuesday, November 30, Marvin Jones, War Food Administrator, and 

 officials of the Office of Price Administration and Commodity Credit Corporation met 

 with a group of senators to discuss corn ceilings. Thore was some difference in point 

 of view among the senators, those froDi Iowa suggesting no change in the coiling, one 

 from Oklahome. and one from Indiana suggesting that there should be no ceiling, and 

 othei^ suggesting ceilings up to $1,28 a bushel, Chicago basis. Senator Lucas, 

 although absent, was reported to favor $1.22 a bushel. Mr. Jones asked for a reaction 

 to the possibility of $l.l6 a bushel and said, "It will be necessary to have an adjust- 

 ment upward in the com price ceiling." He declined to indicate what the increase 

 would be. Mr. J. B, Hutson, President of the Commodity Credit Corporation, pointed 

 out that too high a prico would liquidate livestock without putting any more com in 

 circulation. Com movement in the past. 12 months, according to Mr. Hutson, had been 

 at the rate of 75 million bushels above the previous year, probably a record movement. 



Man-made price regulations always cause complications unless reasonable 

 relationships are maintained.- These are difficult to maintain because of the intricate 

 dependencies of one enterprise upon conditions of another enterprise. Adjustments can 

 be made from time to time, but such adjustments^ cause hardships to some groups and 

 often cause wind-fall profits to others. In the case of the corn price ceiling, gov- 

 ernment agencies ignored the fact that whenever prices are fixed on scarce commodities 

 below the price users are willing to pay, price fixing must be acccmpanied by ration- 

 ing; otherwise, the "bargain" product will be used by the first person that is able ! 



