Evening star., 1941-01-01
Commodity Prices
In Notable Upswinq
Near End Of Year
Livestock and Produce
Erase Earlier Losses;
Major Grains Still Lag
BY FRANKLIN MULLIN.
ASSoclated Press Market Writar

CHICAGO, Dec. 3l.-The blow
Europe'S war dealt American farm
prices last spring because of de-
moralization of international trade
is being Softened, year-end market
statistics showed today, by resurging
domestic demand for farm COM
moditieS as the United States re-
arms.
Prices of important commodities
which collapsed late in Nav and
in June when the war took its
dramatic turn that meant blackout
for many of Europe's ports of en-
try, have come far along the re-
covery road since then Livestock
and produce have more than re-
gained the loss and have pointed to
new high levels but major grains
have Jagged behind.
American farmers produced an
proXimately 5,0000O0,OOO bushels of
grain in 1910, nearly record and an
increase OF 4 per cent compared with
last year. Average yield per acre
was the highest on record. This,
together with large livestock market
ingS and favorable returns during
much of the year from produce. con-
trlbuted to raise agriCulture's cash
income, including Government paw
mentS, to around 100000 900, best
OF decade with the possible ex-
ception of 1887. However, it also
brought about further piling I'D of
surpluses, which, in the absence of
normal foreign outlets, remained
to plague markets during the COM
ing year. To tighten this burden
the Government announced loans on
record amount of grain now held
OF the commercial market.
Grain Price Comparisons.
Prices above ST a bushel were
paid for wheat when 1910 began.
The market was strengthened bv
demand based on two factors which
evaporated within a few months.
The first was the poor outlook for
winter wheat, which had its worst
start on record. Heavy moisture
early in the year brought about a
miraculous recovery of this crop,
however, with the result that 1910
wheat production was about per
cent greater than in 1899, giving the
United States its largest supply,
including carryover, in seven years.
The second was the bullish implica-
ton of the war which was nullified
by the German westward advance
in May.
All grain prices collapsed when
the fall of France became apparent.
In the week from May II to May 10,
wheat fell about 80 cents, the sharp
est break on record. Other grains
showed equally serious losses. BY
late summer, however, the tighten
ing domestic supply situation due
to withholding of more than 400
100000 bushels of corn under loan
or Government ownership and the
piling up Of wheat under loan began
to be felt. Grain prices followed the
lead OF livestock which were show
ing the effects of improved domestic
consumer demand as industry be-
gan to whir with defense orders.
Rebound Helps Farmers.
Hogs lost more than ST per hun
dredweight during May and June.
the Chicago average price tumbhng
to below SIS or to the lowest level
since 1884. Steer prices fell Sl5O
but, by the end of July. began
sharp rebound that carried the
average value of best steers from
$40 to Sl4 while the top reached
sl5.40, highest in three years. In
creased consumer demand for meat
had much to do with this.
Farmers marketed large supplies
of livestock and meat production