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demand 'f or certain products ia. For a number of products, our eating habits are so 

 firmly esta^bliahed on a quantity "basis that we do not make rapid shifts to take 

 advan-' ;:.ge of certain changes in prices. Under such circumstances sudden chan£;3e in 

 the quantities of perishables forced on the market result in substantial changes in 

 prices. It is expected that the price that the government has offered to pay, for 

 eggs for February delivery will prevent the price of fresh eggs from going much 

 below a range of 52 to 35 cents at the farm. This would compare with the government's 

 promise to support egg prices at 50 cents during the spring months and at 5^ cents 

 for the average for the year for the country. This 5^- cent guarantee does not 

 apply to any particular placo. 



Heavy government purchases of meat . For the week ending December l8, the 

 Food Distribution Administration continued the heavy purchases of meat products. 

 Purchases of frozen beef Jumped to more than 5 million pounds: frozen veal, l.U mil- 

 lion pounds; frozen mutton, 2.7 million pounds; lard and refined pork fat, ^^.9 mil- 

 lion pounds; canned pork products, iO.9 million pounds; hog sides, it-.i+ million pounds 

 pork loin, 5.7 million pounds; and cured pork products, 22.7 million pounds. In 

 addition there were substantial purchases of miscellaneous meat products. 



In spite of the extremely heavy slaughter of livestock, particularly hogs, 

 during recent weeks, the War Food Administration indicates that on the basis of their 

 checkups which are made three times a month, there was no evidence of anything more 

 than normal spoilage. Apparently the recent efforts to clear cold storage warehouse 

 space -^f miscellaneous items in order to take care of heavy meat receipts were 

 effective. 



Hard wheat ceilings set at parity . Ceilings were placed on hard wheat frr 

 the f^rst time Tuesday, January k. At the same time maximum prices for soft wheat 

 were raised. The new ceilings on hard wheat will reflect 100 percent of parity and 

 are effective immediately. They do not take into consideration payments made to 

 growers under the soil conservation and domestic allotment act or other govr^rnment 

 subsidies to farmers. The soft wheat ceiling was raised from $1.66 to $1.72 7/3 a 

 bushel for No. 1 red wheat at Chicago and St. Louis. The price of $1.72 7/8 includes 

 the usual commissionnan' e charge of l|- cents a bushel. The ceilings on hard and 

 soft wheat are identical at Chicago, but there is a 2-5-cent premium, for soft wheat 

 at St. Louis and East St. Louis. The basic formula prices exclusive of commission- 

 man's charge, are $1.71 3/8 at Chicago and St. Louis for soft wheat, $1.71 3/8 at 

 Chicago for hard wheat, and $1.68 7/8 at St. Louis for hard wheat. 



Ceiling prices on wheat sold on track at interior and country points in the 

 principal producing areas are based on formula prices for terminal and subterminal 

 markets with specif i-d deductions set forth in the regulations. Specific ceiling 

 prices for wheat futures were not established by the OPA. Almost all such maxir.;>ims 

 were left to the various exchanges. Each acted in accordance with the rules and 

 provisions of the regulations. Wheat futures closed on the Chicago Board of Trade 

 Tuesday ^t from 1 ^/k to 3 ^/k cents below the maximum price set for wheat futures 

 by the officials of the Chicago Board of Trade, but rose to ceiling levels Wednesday. 

 Heavy county selling of cash wheat in both the northwestern and southwestern territor::' 

 has been reported in the past few days. There would seem to be no incentive to hold 

 wheat for futur-e price raises if ceiling prices can be obtained. 



