Farm Prices
Rise As War Continues

RENEWED advance brought about by American entry into the war lifted the December farm price index to 143, which was 42 percent higher than a year ago. The index of prices paid by farmers advanced 16 percent and the index of all wholesale prices excluding farm products and foods rose 11 percent in the same period.

CATTLE–Prices are likely to settle back moderately from the early January upturn, although the broad outlook appears favorable over the next two or three months. Heavy supplies probably will persist during the winter; although the increase over last year is likely to be somewhat narrower than recently.

HOGS–After any temporary sag in the next few weeks, moderate strengthening of prices toward late winter or early spring seems probable. Supplies will undergo a seasonal decline, and combined consumer and Lend-Lease buying probably will be fully maintained if it does not increase.

LAMBS–Market prospects for the remainder of the winter feeding season appear fairly favorable. Numbers on feed appear to be the largest on record, but demand also is at a record level.

WOOL–Prices probably will remain near the ceiling level, although mills are not competing normally for offerings since supplies for civilian use are to be rationed.

WHEAT–Government offerings now being made at not less than 15 cents over the loan value at point of storage will prevent any material advance, unless new legislation should require a change in the selling level. On the other hand, unwillingness of producers to sell below loan redemption value will check declines.

CORN–Steady to strong prices probably are ahead. The loan value and favorable feeding will encourage holding on farms, while demand from feeders, dairymen, commercial feed makers, and industrial users will maintain an active demand.

MINOR GRAINS–Prices appear likely to remain mostly steady to strong.

SOYBEANS–Prices probably will hold their recent gains and may reach somewhat higher levels later. Oil prices are likely to remain near the revised ceiling level owing to the strong position of fats and oils. Large demand will support soybean meal prices.

SEEDS–Current markets for many seeds are seasonally quiet with prices firm. Steady to slightly higher prices are probably until spring demand can be more accurately measured. Available supplies of most seeds are moderate.

FEEDS–Prices probably will be mainly steady to strong during the next two or three months. Demand from livestock feeders, dairymen and poultrymen will continue active because of favorable prices for livestock products.

BUTTER–Steady to strong prices are probably during the next two or three months. Presumably, buying by government agencies will maintain a floor under the market. Production is now running 5 to 10 percent below last year.

EGGS–The seasonal decline will dominate price changes during the next two months. The normal decline from January to March is about 15 percent.

POULTRY–A moderate seasonal price rise is probably during late winter. Receipts will be lighter than in the last three months.