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f^ numbers on farms January 1 were at an all-time high. It is expected that they will 

 " decline, but the downward adjustment in cattle numbers might be delayed by favorable 

 pasture and range conditions. The U. 'S, Depeirtment of Agricultu3?e estimates that 

 there are sufficient quantities of feed grains on hand for the country as a whole to ^ 

 carry through the present feeding year, but that the carryover at the beginning of 

 the next feeding year will be the smallest since 1937 > although perhaps not greatly 

 below the average of predrouth years. 



Commercial com supply low . The supply of com in terminal markets is so 

 small that grain trade representatives will confer with the War Food Administration 

 officials in Washington on the matter of having a fraction of the com received at 

 elevators set aside for the government for the use of essential processors. All com- 

 mercial users, including grinders, commercial feeders, and manufacturers of feed, are 

 having difficulty obtaining enough com. Part of this restriction on com delivery 

 has been caused by weather conditions. Some farmers may anticipate that the demand 

 is so strong that the price of com will be raised. It is very doubtful that any 

 further upward adjustments will be made in the com prices. The ratios between live- 

 stock prices and prices of feed grains are now so low that the government would hardly 

 raise feed costs further and thereby force a more rapid liquidation of livestock. 

 However, it is understood that the War Food Administration has drafted an order re- 

 quiring the b\ilk of com moving to market to be set aside for the government. This 

 order has not been Issued to date, Feirmers have inquired if it is likely that the 

 government would requisition com from farmers. I doubt if that will be necessary. 



The oats situation . According to the Wai' Food Administration stocks of oats 

 January 1, 19^^, were estimated at about 757 million bushels, or l66 million bushels 

 less than a year earlier. It suggests that if the disappearance of oats should con- 

 tinue at the present rate, stocks at the end of the season will be reduced to about 

 the lowest level since the drouth years of 193^-1935 and 1936-1937. Buring a ten- 

 year period, 1932-19^1> February average price at Chicago for 100 pounds of No. 3 

 white oats was about 5 cents more than 100 pounds of No. 3 yellow com. In February 

 this year, the average price of 100 pounds of oats was kj cents more than com. In 

 other words, oats prices are extremely high in relation to com, barley, and live- 

 stock as compared with the ten-year average. 



19^2 wheat loans mature April 30 . The Agricultural Adjustment Agency has 

 called attention to the fact that loans secured by 19^2 farm-stored wheat mature 

 April 30, 19^^> and must be liquidated either by repayments of the loan, interest, 

 and storage advance, if applicable, or by delivery of the grain collateral to the Com- 

 modity Credit Corporation. If the grain is delivered, it mast be to Commodity Credit 

 Corporation owned grain bins or to approved warehouses. Deliveries will be accepted 

 prior to April 30 and must be completed by July 1. The 19^3 farm stora^ wheat loans 

 mature on demand or April 30, 19^5. Upon request by the producer and with the approval 

 of the county committee, farm-stored wheat collateral may be delivered to the CCC at 

 any time prior to July 1, 19^^. All farm-stored barley and rye loans mature on demand 

 or April 30, 19^+^. 



Duty-free feed grain Imports . Because of the scarcity of com in commercial 

 and feeding channels, it is expected that the period will be extended during which 

 feed grains may be imported free of duty. Considerable wheat is coming from Canada 

 for feed purposes. 



Fever early lambs . The U, S, Department of Agriculture estimates that the 

 number of early lambs in the principal producing states will be about 6 percent 

 smaller this year than last, and the smallest number in the past eight years. Part 



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