-2- 



^K^ steady following the recent advBnce, Tuesday, November 27, a load of lll»-pound II- 

 ^ linols fed lambs brought $15.25 at Chicago. Adding to this a feeder «s subsidy of 



$2.15 brought the gross return to $17.1*0. This load of feeders was bought at Chicago 



last September at $15, weighing 87 pounds. 



Soybean price ceilings . There is eridently some misunderstanding concern- 

 ing the soybean ceilings and support prices. Some feirmers are complaining that, now 

 that 85 to 90 percent of the soybeems have been sold from the f€Lrm, the government 

 has raised the price. That is not the case. The support price for soybeans was an- 

 nounced months ago. However, processors recently bid up the price of soybeans above 

 the support level. The result was that the government first threatened to place a 

 ceiling on soybeans and November 2 established a ceiling. The ceiling is 6 cents 

 above the support price, namely, $2,10 a bushel for No. 2 yellow and gretn soybeans 

 with not to exceed Ik percent moisture. The celling prices and premiums are the saane 

 as used last year under Bimileu: market conditions. However, they were established a 

 little earlier in the soybean marketing season than last year. Usually they are set 

 during January or February. 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 merchandis- 

 ers. Farmers have gained the impression that, because beans are selling above the 

 support price, a new support price has been established. 



Export outlook for farm products . During the next few months the export of 

 farm products will be em 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 buy on the part of the recipients or willing- 

 ness 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 3^^8,000 toijis of wheat in the United States 

 from commercial sources in December. The largest purchasers would include the United 

 Kingdom, 112,500 tons; Belgium and Holland, 100,000 tons each; with smaller purchases 

 ranging from 5>000 to 8,500 tons to Brazil, Spain, Portugal, Sweden and Colombia. In 

 addition, Nor£h Africa and France may buy more wheat. Preliminary estimates suggest 

 exports of 180,000 tons of wheat in Deceinber for the account of the United Nations 

 Belief and Rehabilitation Administration. About one -third of this is scheduled for 

 China. General MacArthur announced that he had granted permission to the Japanese 

 government to resume foreign trade and to import a total of 3 million tons of food- 

 stuffs from North America, with the restrictive qualification that the amounts will 

 depend upon availability of shipping and world supply. Officials of the United States 

 Department of Agriculture do not see how such a leurge quantity of foods could be made 

 available to Japan. 



CCC reduces selling price of wool . The United States Department of Agricul- 

 ture reduced the selling prices on sales of 19^3, 119^*^ and 19^5 wool owned by the 

 Commodity Credit Corporation, on the average, about 7 cents a po\md (grease basis) 

 lower than the prices under the original schedule. This was done to permit resump- 

 tion of sales of domestic wool at prices in line with prices for compajrable foreign 

 wool, and will permit the CCC's inventory of about ^21 million pounds to move Into 

 domestic channels. Total U. S. gtocks are about 86O million pounds, but they include 

 ^^ both government- owned wool and foreign holdings. The amended schedule applied only 

 1^ to selling prices, and hand!lers will continue to purchase wool from producers, pools 

 and secondary handlers under the 19^5 agreement on the same basis as in the paert. 



