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WEEKLY MARKET REVIEW AND FARM OUTLOOK 



By G. L. Jordan 

 Professor, Agricultural Economics 



(Prep€u:ed October h) 



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

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

 cycles.) Q 



Prices at Chicago 



*Ceiling prices. 

 **Nominal. No cash sales. 



Grain prices, peu'ticulsLrly grain futures, rose to new seasonal highs during 

 the past week. Wheat was strong as a result of excellent mill buying and inflation 

 fears. There has been a rapid flow of wheat into consuming channels, and country 

 marketings have diminished. It is expected that the export flow of wheat and wheat 

 flour during the next three or four months will be large. Com marketings are very 

 light, partly because of the uncertainty concerning the maturing of the new crop and 

 partly as the result of an euiticipatlon of a reduction in income taxes to become ef- 

 fective January 1, 19^6. In connection with this inccaie tax outlook, it now appears 

 that the reduction in income taxes will approach 2 1/2 billion dollars. The proposal 

 being favored by the House committee at the moment is to make the exemptions for de- 

 pendents the same in connection with the 5 percent tax as it is on surtaxes euid to 

 reduce surtaxes about k percentage points. The OPA reiterated its previous statement 

 that corn ceilings will not be raised. 



Cattle prices have not been as strong during the past week as during the 

 previous week. There has been no letup in the consumer demand for beef. In fact, it 

 probably will be stronger with the release of low-quality beef from rationing. One 

 reason given for the reduction in prices has been caution on the part of buyers at 

 the beginning of a new accounting period. It appears that the slau^terers found by 

 mid-September that their average prices were well below the government's stipulated 

 maximum average. Therefore, they bid more freely during the latter part of September 

 than would be Justified on the avere^e. Hog receipts continue to be light, and sup- 

 plies clear quickly at OPA ceilings. An increasing percentage of 19^5 spring pigs are 

 arriving at Chicago. There is a rumor to the effect that the hog price celling at 

 'Chicago may be raised anywhere from 10 centos to 25 cents possibly with the next few 

 days. 



