WEEKLY MAEKET REVIEW AND FARM OUTLOOK 



By G. L. Jordan 

 Professor, Agricultural Economics 



(Prepared July 19) 



(Highlights of the Weekly Market Review and Farm Outlook are broadcast each Friday 

 from 12:14-8 to 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 580 kilo- 

 cycles. ) 



^Celling prices. 

 **Nomlnal. No cash sales. 



Prices of grain futures and securif.ties tumbled Tuesday as a result of a 

 rumor that Japem might soon surrender. Premier Stalin was supposed to have Japan's 

 terms, and President Truman was thought to be in a position to indicate the terms of 

 surrender we were willing to accept. Stock prices declined the farthest in many 

 months. Eye prices dropped from two to three cents a bushel, wheat prices declined 

 fractionally and com futures sold at below the ceiling for the first time since the 

 new crop futures reached the ceiling price a week or so ago. 



The action of prices this week reflects the complexity of the current situa- 

 tion in grains. Offerings of feed grains are very light. The demand is very strong, 

 and the July 1 crop report indicated a severe drop from last year's production of 

 corn. On the other hand we shall have a new high record output of wheat; pastures 

 are excellent; we have fine crops of hay and alfalfa, and the oats crop is good. 



Wheat is coming to market in rather large volume, but the demand for flour 

 holds up well. The May grind of wheat of ^h l/2 million bushels was higher than in 

 April and also higher than in May 19^4-. The reguleu- grind of flour was the leurgest 

 of any month in the past year. Flour output has been high for the past 12 months. 

 The Commodity Credit Corporation reported that it had sold 159 million bushels of 

 wheat for feed in the year ending June 30, and had also disposed of 115 million bush- 

 els, which went to militeiry and lend-lease buyers. The heavy demand for wheat ha^ 

 caused government experts to suggest that the carry-over of wheat may not be much dif- 

 ferent from last yeeur's 516 million bushels. A private concern thinks that this 

 estimate will have to be revised downward to about 285 million bushels this year. Feed 

 manufacturers point out that wheat for feed is needed now because they are unable to 



