Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-01-12
0PA Pegs Corn Prices
To Project Costs Of
Livestock, Poultry
Temporary Ceiling Is
Effective Today on Bosis
Of Yesterdays SoIes

Effective Today on Basis
Of Yesterdays SoIes
~ the Associated Press.
The ONCE of Price Administra-
ton today froze maximum corn
prices on all exchanges and in
every cash and local market over
the country so as to maintain
present favorable ratios" be-
tween the price of corn on one
hand and the price of livestock,
poultry and eggs on the other.
The action. taken to halt further
sharp advances in corn prices, was
In the form of temporary price
ceiling effective Immediately which
Will be followed by a permanent
price regulation which will not per-
nit any increase in the general level
OF corn prices.
The maximum prices, the OPA
said, will be generally those at which
sales were made yesterday.
Declines Can Take Place.
Under the freeze of maximum
prices, however, declines in market
prices could take place.
The OPA said that Sterilization
Director James F. Byrnes instructed
1t to apply the ceiling to corn, pre-
viously uncontrolled at all levels,
and that Secretary of Agriculture
Wickard had approved the action.
Prices of corn futures contracts
and prices for cash corn in the
recognized cash markets were
frozen at the highest level of
prices prevailing during the period
January 8-12. In most instances.
these highs were reached yester-
day.
Corn prices ut the small local
markets were frozen at the highest
level Of prices prevailing yesterday.
Within the next so days, OPA
said 1t will issue q permanent price
regulation on corn, which will con-
thue the levels frozen by today's
action and will be based on 81 a
helshel for No. 2 yellow corn in
Chicago.
In joint statement, Mr.. Byrnes,
Secretary Of Agriculture Wickard
AID j. K. Galbraith, OPA deputy adj
n4inistrator, said present prices for
CORN exceed 100 per cent of parity,
taking into consideration the AAA
payments made by the Agriculture
department.
feeling price levels set in the
temporary regulation, ''the state
nent said, will be continued in the
later permanent order. There def
ndtely will be no increase in the
general level Of corn prices"
iOnly seed corn, popcorn, grain
sbrghums, sweet corn, broom corn
and local farmer-to-farmer sales
q corn were exempted from price
cbntrol.
Corn Demand Increasing.
Agriculture Department officials
slid the freezing was designed to
preserve a favorable ratio between
the prices Of corn on the one hand
apd hogs, cattle, milk, poultry and
eggs on the other. Present ratios
make it profitable to feed corn to
livestock and poultry.
sOmcials said corn prices have
been advancing in recent weeks, due
principally to sharp expansion
in the production of hogs and poul-
try and to prospects that corn and
other feed reserves would be reduced
considerably as a result of the con-
stquent expansion In the demand
for corn.
Corn prices advanced from an av-
erage Of rs cents to 80 cents a
bushel at local markets between
November and December.
1t was necessary, officials said,
to bring the corn price advance
to a halt because livestock, dairy
and poultry products are subject
to Government price ceilings.
IF corn prices were allowed to go
much higher" an official explained,
the margin between feed prices
and livestock prices would narrow.
The Government would have to raise
ceilings on livestock, dairy and poul-
try products in order to maintain
q favorable margin, else many farm
ers would become discouraged and
reduce their production. The Gov
eminent does not want to raise
ceilings on livestock, dairy and poul-
try products"
All Markets Affected.
II was emphasized at OPA that
the ceilings apply to all corn futures
transactions on the grain exchanges
In Chicago, Kansas City and Min
neapolis.
The price maximum also applies
TO cash corn dealings on these mar
kets in addition to all other recog-
nized cash markets, including,
among others, Omaha, Sioux City,
st. Louis, Memphis, Cairo and Pc
oria, H.; Cincinnati, Buffalo, San
Francisco, Indianapolis, Portland,
Greg; Baltimore, Philadelphia and
Boston.
In addition, sales in all small 10
cal markets will be covered.
OPA explained the price controls
bill will work at the various market
ing points as follows:
On futures-Ceiling prices will be
the highest level at which each in
dividual corn futures option sold
yesterday.
On cash corn in the recognized
NEUTRALITY-SUSPICIOUS. will be the top
prices for which No. yellow corn
sold yesterday, with premiums or
discounts above or below this price
for every other grade rejecting the
differences in sales prices which
prevailed on that date.
Other Control Methods.
II no sales were made yesterday
on any particular class or grade
Of corn, the maximum will be de-
termined by using as base price
the highest price for the best grade
Of that class Of corn which did sell
In this market yesterday.
The differentials which existed
between the two classes and grades
Of corn on the most recent day on
which both sold In that market