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Livestock receipts for November . Receipts of salable cattle at 12 public 

 markets for November were 3 percent above a year ago. Calf receipts were down 3 per- 

 cent, hog receipts were down 27 percent and receipts of salable sheep and lainbs were 

 down 23 percent. The average weight of barrows auid gilts received at Chiceigo during 

 November was 259 pounds compared with 231 pounds a year ago. 



Com loem . Althoiagh I received no official communication, I understand that 

 the corn loan in Illinois will be 3 cents a bushel higher than last year. This dif- 

 ferential probably will apply to each county. 



Rye supplies small . Rye prices are the highest since 1920 euid are about 50 

 percent above the prewar ten-yeeur aver€ige €ind ko percent above last year as a result 

 of the smallest supplies since 192^^ and an urgent demand. The rye price ceiling has 

 been set at $l.ii2 for No. 2 3ye at Chicago, and the goal for 19^6 stands at 23 percent 

 above the 19^-5 Indicated production. 



The dairy situation . The United States Depfiurtment of Agriculture expects 

 prices received by farmers for whole milk sold at wholesale to average somewhat lower 

 in 19^6 than in 19^5/ particuleurly in the flush production season, if price ceilings 

 on dairy products are continued at present levels. If ceilings are removed early in 

 19^6, prices of whole milk probably will average at least as high in 19^6 as in 19^5. 

 A further increase in the price of butter, either €ui increase in or the removal of the 

 ceiling, would be followed by diversion of some milk to butter production, which is at 

 the lowest jlevel in over 20 years. Such a rise in butter prices would strengthen farm 

 prices of both butterfat and whole milk. 



Demand for farm products to remain high this winter . In spite of the decline 

 that is expected in consumer earnings, expenditures for food products will remain about 

 the same during the rest of the winter as at present, acco2?dlng to an estimate of the 

 U. S. Depeurtment of Agriculture. Consumers probably will earn less but will also save 

 less and pay less in income taxes. Exports of farm products are expected to be greater 

 than in any prewar year, but probably will decline from the wetrtlme level. During the 

 latter pajrt of 19^6 the demand for farm products will probably decline, but not much 

 change in farm prices is emticipated. Any price declines would be limited by the 

 operation of the Stabilization Act of 19^2, which provides for price support at not 

 less than 90 percent of peurity for a large number of farm products . A decline to 

 mandatory support levels would present a decline of about 15 percent under present 

 levels, assuming no change in peurlty. With the agitation for increased industrial 

 wages, which aiffects costs of many coimnodltles farmers buy, there does not seem to be 

 Einy likelihood of an appreciable decline in parity levels in the near future. 



Canada has short grain <^rop . As a result of substemtial reducticne In yields 

 of grain in the Prairie Provinces, Canada's grain production in 19^5 will be sub- 

 Btantlally below l^kk. Comparable production figures follow: 



