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com belt the feed grain supply la 12 percent over a year earlier. If the indicated 

 rise of 12 percent in the fall pig crop over last year materializes, it will increase 

 the requirements for feed. Demand for poultry and dairy feeds exceeds that of a year 

 ago. In the woatem com belt the cany-over should be much larger than last year, 

 but a sharp drop in the com crop nay bring feed grain supplies down seven percent 

 from a year earlier. Requlranents probably will be larger than last year as a result 

 of higher hog and chicken output plus the maintenance of egg and milk production. In 

 the south Atlemtic states the feed grain supply is about three percent above last year. 

 In the south-central states it is down about seven percent as a result of a drop of 

 seventeen percent in grain sorghum production. In the western states smaller com, 

 oats, barley and grain sorghum production indicates an eight percent drop in the feed 

 grain supply from a year earlier. Dairy feed requirements will continue strong, but 

 a decrease in laying hens in the western states may reduce feed requirements slightly. 

 The total feed grain supply for the country will be about 1.5 percent less than a year 

 earlier if the com crop estimate of August 1 proves to be correct. A change of one 

 bushel in the average yields of com would change the total danestically produced feed 

 grain supply by about two percent. 



Distillers to ^t more grain . The U. S, Department of Agriculture reports 

 that distillers may use 3*000,000 bushels of grain other than com and grain sorghum 

 for the production of beverage spirits and by-product livestock feed during each of 

 the months September througih December, If the corn supply situation Improves, some 

 new crop com may be allowed in addition to or in place of other grains in November 

 and December. 

 r 



Cold storage holdings eihow some improvement , August 1 holdings of frozen 

 fruits set a record for August which was eotie 25 million pounds above that of last 

 year. Frozen vegetable holdings were down about 7 million pounds from last year. A 

 record high of 26l million pounds was established for beef holdings, which exceeded 

 the previous August high at the end of World Wea» I by 52 million pounds. In contrast 

 pork stocks reached an August record low at 3^3 million pounds, 27 million below the 

 holdings in 1935* Holdings of all types of meats were 36 million pounds below aver- 

 age. Stocks of dairy products, which were very low during the first half of 19^5* 

 accumulated rapidly in recent months. Stocks of butter at I85 million pounds were 

 25 million pounds above average. The into-storage movement of 5^ million pounds of 

 butter during July was near the record, August 1 holdings of shell eggs were the 

 lowest on record for the month. Frozen eggs were also below average, but stocks of 

 poultry were above average although under last year's abnormally heavy stocks. 



The world sugar situation . World sugar production in 19^ probably will be 

 somewhat larger than in 19it5 but will be Insufficient to meet unrationed demands at 

 current prices for sugar. The drouth appears to be broken in Cuba, and production 

 should increase there. Beet sugar production in Europe probably will improve gradu- 

 ally during the next few years. Seme improvement is also expected in the Philippines. 

 Our situation in the United States has been affected by the fact that sugar production 

 in 19^+5 is the smallest since the start of the war and the needs for sugar in recently 

 liberated areas of Europe have been large. 



Potato production estimate raised . The August 1 estimate of the total 19^5 

 crop of potatoes is U20 million bushels. 5ily in I928 and 19^3 was the new crop now 

 in prospect exceeded. Last year's output was only about 379 million bushels, and the 

 annual average production for the 10 jeare 193^-^3 vas 375 million bushels. The in- 

 termediate crop which is now coming to market is expected to total about 33 million 

 bushels, and it is the portion of the crop about which the government is concerned. 



