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-*fe42>^ Extension Service In Agriculture and Home Econonlce 

 SL - University of Illlnolo College of Agrlciilture , Urbane '^fiCE/Vm 



WEEKLY REVIEW AMD FARM OUTLOOK LETTER f^jQy g^ 



Profeesor, Agricultural Economics -^-^^^^nttttY 



(Prepared November 29) APR 1 1C46 . ->. 



Grain prices have remained firm during the past weejj;;* . jfi(xvjcljp^jafQ|aorn at 

 Chicago exceeded 600,000 bushels Monday (November 26) emd were the neavleet Tn some 

 time. Of the yellow com Inspected Tuesday, 12 cars graded No. 5> 2? cars No. U, 

 80 cars No. 5> and 70 cars sample. The government announced Monday that It would 

 entertain offers for No. 1 and No. 2 yellow com to fill export demands. Few offers 

 were submitted. There Is no accumulation of com at terminal markets. On November 27 

 commercial stocks of com In the United States In store and afloat at domestic mar- 

 kets totaled 6,854,000 bushels. A year ago the comp€urable figure was 11,851,000 bush- 

 els, and the 1930-39 average for December 1 was 28,265*000 bushels. 



"Hogs brought 25 cents under celling prices first at Interior Iowa and south- 

 em Minnesota points, then at Chicago as receipts at terminal mstrkets Increased. Re- 

 ceipts at Chicago stockyards, direct and salable, totaled 35; 000 head Tuesday, 

 November 27. This represented^^Qi^ largest nuxnber to be unloaded on any one day since 

 last December Ik, There Is a prospect that^ because of the large receipts, a bottle- 

 neck will develop In slaughtering facilities and hogs will continue to bring less 

 than celling prices at Chicago. Cattle receipts are relatively large, but choice 

 steers, yearlings and heifers continue to. sell actively and fully steady at the blu- 

 est prices of the year, considering quality. 



There Is evidently some misunderstanding concerning the soybean ceilings 

 and support prices. Some farmers are complaining that, now that 85 to 90 percent of 

 the soybeems have been sold from the farm, the government has raised the price. That 

 is not the case. The support price for soybeans was emnounced months ago. However, 

 processors recently bid up the price of soybeans above the support level. The result 

 was that the government established a celling. The celling Is 6 centfl above the sup- 

 port price, namely, $2.10 a bushel for No. 2 yellow and green soybeans with not to 

 exceed l**- percent molstui^. The celling prices and pre!hilums are the same ew used 

 last year under slmileur market conditions. OPA also renewed last year's allowance of 

 5 cents a bushel for handling at the country elevator and 2 l/2 cents a bushel for 

 merchandisers. Farmers have gained the Inpresslon that, because beans are selling 

 above the support price, a new support price has been established. 



During the next few months the export of farm products will be an important 

 factor affecting demand. If . ways and means are found to satisfy the needs of large 

 fractions of the population in Europe and Asia, we shall not need to worry about the 

 depressing Influences of possible surpluses In this country. However, exports are 

 not made on the basis of need. They are made on the basis of willingness and ability 

 to b^uy on the part of the recipients or willingness to buy and donate on the part of 

 our-^govemment . Recent indications point to strength in the export market. Permission 

 has been granted to eight foreign cash purchasing nations to purchase a total of 

 5^8,000 tons of wheat in the United States from commercial sources in Decensber. In 

 addition, preliminary estimates suggest exports of l80,000 tons of wheat in December 

 for the account of the United Nations Relief and Rehabltitation Administration. About 

 one-third of this is scheduled for China. Japan is in the market for large quantities 

 Of food. 



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Hooperative Extension Work in Agriculture and Home Economics: University of Illinois 

 College of Agriculture and the United States Department of Agriculture cooperating. 

 H. P. Rusk, Director. Acts approved by Congress May 8 and June 50, 191^ 



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