WEEKLY MARECE3T REVIEW AND FARM OUTLOCK 



By G. L, Jordan 

 Professor, Agricultural Economics 



(Prepared August 25) 



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

 frcan 12:1^8 to 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 58c kilo- 

 cycles.) 



CoBBiodit.^ ,Prlc« B at Chi( 



Wednesday 



Aufflist 22, 19!^5 Week ago 



Decemher futures 

 (close) 



Wednesday 



Week ago 



Wheat (No. 2 red) 

 Corn (No. 2 yellow) 

 Oats (No. 2 white) 

 Butter (92 score) 

 Eggs (current receipts) 

 Hogs (top price paid) 

 Cattle (top price paid) 

 Hog-corn ratio, Chicago, 

 August 18 



$1.65 1/2 $1.66 1/2 

 1.18 1/2** 1.18 1/2* 



.61 1A-.61 1/2 .61 lA 

 M* M* 



.371* .571* 



lU.75* 11^.75* 



18.00* 18.00* 



$1.65 

 l.lU 5/8 

 .58 7/8 



*1.65 5/8 



l.lU 3 A 



.59 3 A 



12.3 



12.2 



^ 



♦Ceiling prices, 

 **NcMinal. No carsh sales. 



The first week following the cessation of hostilities was characterized "by 

 government activity designed to "bring about rapid reconversion, A large fraction of 

 the wartime controls of production were removed. Industries are encouraged to produce 

 a maximum quantity of consumer goods. The metals steel, copper and aluminum, were 

 made freely avalla"ble; and construction and lumber controls are expected to be ended 

 by September 30, War plants are shutting down at a rapid rate. Several hundred thou- 

 sand men have been thrown out of work, but there is no panic. Everyone knew this would 

 happen some time, although it was not anticipated so soon. There is a great demand 

 for all sorts of consumer goods. Except for foods, the demand is exceptionally strong 

 as a result of inability to buy the goods during the past few years. That fact gives 

 businessmen assurance that they will have an outlet for their products and promotes a 

 feeling of optimism. In some areas a large fraction of the people already released 

 from war plants found employment as filling station operators and in a number of other 

 peacetime activities. Other characteristics of this immediate "postwar" period are 

 the demands for higher hourly wage rates by union labor, the ending of the no- strike 

 pledge, the permission by the government to Increase wages so long as such increases 

 do not cause an increase in prices, and the stoppage of lend-lease. 



As far as agricultural products are concerned, the week was characterized by 

 steady prices for grains offered on the cash markets, weakness in grain futures' prices, 

 steady prices for livestock except for a slight weakness in the plainer kinds of cattle, 

 and improved crop prospects. The prices of grain futures were steadied by government 

 buying of cash wheat and a good feeding demand for oats. Some flour was sold to 

 Mexico, Prices of egg futures were weak. 



The government took steps to release several food controls. Set-aside orders 

 were suspended for beef, veal and ham. Purchases of these products by the government 

 will now be made in the open market as needed. Secretary Anderson also suspended sales 



