',„7^ ^^^W Extension Service in Agriculture and Home EconoBiicfl 

 ^X ^ University of Illinois College of Agriculture, UrbanA ^^OElVEn 



WEEKLY REVIEW AND FARM OUTLOOK LETTER 



^ WEEKLY REVIEW AND FARM OUTLOOK LETTER f^Qy <.^, 



By G. L. Jor(kn '^^ ^'^^'•^' ^mHUSBANr^r, 



Profeflflor, Agricultural Economics -o^nro^ty 



(Prepared November 29) APR 1 ICIS 



Grain prices have remained firm during the paat weejc. Bpf^lpgfl ,9f aorn fKt 

 Chicago exceeded 600,000 bushels Monday (November 26) and vere'tHe heaVieVi'ln some 

 time. Of the yellow corn Inspected Tuesday, 12 Cfiuro graded No. 5, 2? caro No. k, 

 8o 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 Novembers? 

 commercial stocks of corn in the United States in store and afloat at domestic mar- 

 kets totaled 6,85^,000 bushels. A year ago the comparable figure was 11,631,000 bush- 

 els, and the 1950-59 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 markets increased. Re- 

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

 November 27. This represented the largest number 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 high- 

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

 Is not the case. The support price for soybeans was announced Bjionths ago. However, 

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

 was that the government established a ceiling. The celling is 6 cents above the sup- 

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

 '^exceed ik percent moisture. The celling prices and premiums are the same an unel 

 last year under similar 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 buphel for 

 merchandioers. Farmers have gained the impression 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 

 depresnlng 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 buy on the peirt of the recipients or willingness to buy and donate on the part of 

 our government. 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 December. In 

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

 for the account of the United Nations Relief and Rehab itl tat ion Administration. About 

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

 of food. 



-0- 



Hooperatlve 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, 191U 



