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WEEKLY MAEKET REVIEW AND FABM OUTLOCK 



5y G, L. Jardan 

 Profeeeor, Agricultural EconcoilcB 



(Prepared August 2) 



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

 from 12:k& to 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 58O kilo- 

 cycles.) 



December futures 



Comnodlty Prices at Chlc< 



Wednesday (close) 



AugoBt 1, 19^5 Week ago Wednesday Week ago 



Wheat (No. 2 red) $1.68 l/2 $1.67-1.6? l/2 $1.65 3/8 $1.6k I/2 



Com (No. 2 yellow) I.18 l/2** I.I8 l/2*» 1.18 l/2* I.I8 l/a* 



Oats (No. 2 white) .69 5A-.70 .6? l/2*» .61^ 7/8 .6k j/U 



Butter (92 score) M* M* 



Eggs (current receipts) .356* .5^* 



Hogs (top price paid) 1^.75* • 1^.75* 



Cattle (top price paid) I8.OO* I8.OO* 

 Hog-corn ratio, Chicago, 



July 28 12.2 12.2 



^Celling prices, 

 **Nrni1nal. No cash sales. 



Secretary Anderson decided against reestahllshment at this time of a program 

 under which the government would subsidize the use of wheat for livestock feed. This 

 decision apparently was "based on the uncertainty of demands for wheat as food, the un- 

 certainty concerning the outcome of this yearns com crop, and the fact that export 

 demands for wheat for food have not yet heen fully determined. The reluctance to in- 

 crease tho use of wheat for feed "by moans of a suhsidy may have been caused scnewhat 

 by the unusually heavy disappearance of wheat stocks for the three months ending July h 

 Withdrawals in that period totaled 301 mlllian bushels compared with 228 million bush- 

 els in I9UU. Stocks of old wheat in all positions on July 1 were 262 million bushels. 

 About 10 days ago shipments of wheat to Kansas City, Missouri, and St. Louis were halted 

 except under permit. The permit system was inaugurated to relieve the grain-car con- 

 gestion at Kansas City and to prevent shifting the Kansas City movement to St. Louis, 

 Recent reports Indicate that it will be unnecessary to retain this permit system for 

 Kansas City, as the situation is clearing up. 



An order has been issued prohibiting the use of com and limiting the use 

 of other grains in the manufacture of alcohol. This was done to conserve grain sup- 

 plies needed for food and feed, according to the U. S. Department of Agriculture. 



Oats prices have boon strong during the past week as a result of several 

 factors. The demand for feed grains of all kinds has been strong for months, end. the 

 decision not to subsidize the sale of wheat for feed has added to the demand for oats. 

 Fanners are likely to feed oats heavily, and the demand at the terminal markets will 

 remain strong. Eastern dairjrmen and poultrymon are having difficulty In obtaining 

 corn and will be anxious to purchase oats, barley or other grains that can be used 

 In their rations. They were the ones who strongly urged the adoption of the subsidized 

 wheat-food program, and thoir situation may become so critical that such a program will 

 be inaugurated later. In general oats seem to be yielding well and the q.uallty is ex- 

 cellent. 



