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^does not have a satisfactory outlet for all graies of "beef finds that the'hlg packers 

 an bid up the price of choice cattle ahove the price at which they can "be profitably 

 sold as meat. The large pewjker can survive by averaging all his costs as a basis for 

 government subsidies and as a basis for spreeidlng out hie overhead costs. Because of 

 producer opposition to cattle ceilings, sotne other way may be found for solving the 

 problem of the eastern specialized slaughterers. 



The feed situation * The Bureau of Agricultural Economics report on the feed 

 situation suggests that feed grain prices are expected to remain below celling levels. 

 During the spring of 19^5 > com prices may not have as much seasonal rise as in most 

 years. On the basis of the November crop report, supplies of the four principal f^d 

 grains, com, oats, barley, and grain sorghums, will total about 13^ million tons, 

 which is one percent larger than in 19^5-^* ^e quantity of grain per animal unit ■ 

 will be materially larger than in 19*^5- W*- and approximately the sane as in 19'' --'+5. In 

 that year we had record supplies, and large quantities of wheat and rye were fei. We 

 alec had a large livestock population. The supply of high protein feeds will ^e large 

 in spite of some reductions in the supply of linseed cake and meal and animal protein 

 feeds. Supplies of cottonseed cake will be a little larger, and supplies of soybean 

 ccUce and meal about the same as in 19^3-**^ • 



The livestock situation . Purchases of beef by the armed forces in the first 

 half of 19if5 probably will be larger than in the first half of 19^/ according to the 

 Bureau of Agricultural Economics. Cattle feeding during the winter may be somewhat 

 greater than a year earlier, with larger com supplies and wider spreeid between feeder 

 and fed cattle prices. Large purchases of pork by the War Food Administration and the 

 armed forces and a sharp reduction in hog marketings during the first seven months of 

 19i*-5 will tend to hold hog prices above the level of the year earlier. The total 

 number of lambs fed this winter may be materially smedler than last year emd may be 

 the smallest in at least ten years. 



Wheat prices raised in Arflentina . The guaranteed minimum price to producers 

 for new crop wheat has been fixed by Argentine authorities at 72 cents a bushel. This 

 is the highest level at which wheat prices in that country have been supported since 

 the adoption of the guaranteed mini mum price policy as a fami relief measure in 1933 • 

 The new rate represents an increase of more than 10 percent over last year's support 

 price. 



More potatoes for the army . In order to assure adequate supplies of good- 

 quality Irish potatoes for the American armed forces both in this country emd abroad, 

 the Wju:* Food Adm1 nlstration has issued an order requiring shippers of potatoes grown 

 in certain western areas to offer them to the government before making deliveries else- 

 where. The nation's 19^ potato crop is about 25 million bushels above the 10-year 

 average. However, both the production pattern and seasonal movements have been abnor- 

 mal, leaving most of the remaining supplies in the eastern producing states. This has 

 made it necessary to force sales to the government In the western potato-producing 

 area. . 



GLJ:wd 

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