e 



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Prlces received by feumers for dairy products during the fall and winter 

 months probably will be about the same as In the previous year, the Department of 

 Agriculture reported. Retail prices of principal dairy products have been held to 

 19^2 levels, while consumer Income has advanced about one-third. Declines In con- 

 sumer purchasing power or decreases In nonclvlllan tfiJclngs In the next several months 

 probably will n^t materially affect prices of dairy products. A wide gap exists be- 

 tween the civilian demand for and supply of manufactured dairy products and fluid 

 cream. A considerable reduction In clvllleui demand or a substantial Increase In 

 civilian supply would be necesscury to close this gap. 



Feed floraln supplies . The grains continue In active demand. Com receipts 

 in particular are below the needs of the trade. There continued to be much uneasiness 

 about the size of the new crop of com. Most private estimates place the com crop at 

 about 2,900 million, and the Septeinber estimate of the Department of Agriculture^ Is 

 being anxloudly awaited. Nevertheless It is generally recognized that, because of the 

 late season, estimates based on September 1 conditions cannot be expected to be very 

 reliable, as the ax;tual out-turn of the crop will depend on when the first killing 

 frost comes. Killing frost at an early or even at about the average date is likely 

 to result in a Icu^ge amount of soft com. On the other hand, if frost over most of the 

 com belt should be late, there is the possibility of a very large crop of high- 

 quality com. 



Favorable growing conditions during July and August materially improved the 

 outlook for feed grain supplies for the 19^5-^4-6 season. Supplies of the four princi- 

 pal feed grains, com, oats, barley and sorghum grains, total about I50 million tons, 

 only about two million tons less than the 19kk'k^ supply. The prospective number of 

 grain- consuming animal units on farms €uid ranches next January 1 is expected to be 

 about the same as a year earlier. The 19^5-^6 supply of feed grains probably will be 

 adequate to provide for about the same livestock production as in 19^S^-^5. Some re- 

 duction in carry-over feed grain may occur, however, by the end of the yeeir. 



Wheat purchase program . Farmers putting wheat under Commodity Credit Cor- 

 poration loem will have the option of selling it next spring to the Production and 

 Marketing Administration at 15 cents a bushel above the applicable loan value less 

 cheurges. All unredeemed farm storage loan wheat on April 1, 19^6, which is delivered 

 to PMA by the producer in accordance with the Instruction will be purchased by PMA. 

 No storage payment will be made by PMA on farm storage loans of wheat which is pur- 

 chased. 



Terminate wool set-aslfe order . Effective August 29 the U. S. Department 

 of Agriculture terminated War Food Order 50, which restricted the sale of most wool to 

 the Commodity Credit Corporation. Although this action ended mandatory sale of W09I 

 to the Commodity Credit Corporation, if the vendor elects he may still sell his wool 

 to the Corporation. A Joint organization has been formed to market the huge wool 

 stocks accumulated by the British Commonwealth during the war. All wool offered 

 will be subject to minimum reserve prices, and the organization will take over all new 

 new wool not sold at minimum prices or above. The trend in wool prices, reports said, 

 must move in accordance with general world conditions and the need to expand consump- 

 tion. Price fluctuation will be avoided by Joint measures of eidequate offerings and 

 reserve prices. ^ 



