Evening star., 1947-08-03
Grain Price
Is Problem
Officials Also Worried
About Late Planted
Corn Crop
BY Molcolm Lomborne, Jr.


1 1.435. .551 900 bushels, and there are
prospects that the total will be even
higher when the tremendous task
Of harvest Is completed this fall.
Agriculture Department officials
are confident the wheat crop will
be brought in with q minimum Of
waste, despite handicaps Of storage
facilities, box car shortages, and wet
weather.
This is good news for American
consumers, food ministers Of foreign
countries and the many commercial
outlets in this country dependent
on grain.
But, with all this, there are at
least two problems that worry Wash
ington officials.
The first Is how to keep grain
prices from soaring further and still
make the Government purchases
believed necessary to fill export pro-
grams for the marketing year ending
next June 80.
Farmers "Bullish"
The second big question is how
will the 1s47 corn crop turn out in
the light of late planting in many
areas this spring and adverse grow
ing weather in the early stages.
On the first point, department
officials already have noted tend
ency by some wheat producers to
move their grain into storage rather
than offer it for sale. Some farmers
are bullish." one Official commented
recently. They are pretty confident
wheat is going even higher" No.
winter wheat has been selling at
Chicago recently at figure around
$2.35 a bushel. Earlier this year,
wheat rose to an all-time high of
about So bushel.
The official points out further that
number of growers have an eye on
their 1947 income tax return, and
are quite satisfied to wait until after
the first of the year to market all Of
their wheat.
One Agriculture Department off,
cial noted that the Government was
not buying wheat at anywhere near
the maximum level allowed by this
years crop prospects. "But. why bull
the market" he observed, adding
that If you took out the corn factor,
the price Of wheat would come
down." BY corn factor" he meant
the uncertainty over this years
corn crop was a definite factor in
keeping all grain prices high.
Breakdown of Crop
Accordingly, 1t appears the depart
ment is playing a waiting game, with
conviction that the high price of
wheat is not here to stay.
Department experts have broken
down this years wheat crop about as
follows: 100000, 900 bushels for all
domestic use. 10000. 900 bushels as
minimum carry over next July i, and
from 45o, ,ooo, 900 to 4S5, 600. 900 bushels
for export.
This last figure is dependent
great deal on Cd ability of this
country to move the grain to ship
side and then get 1t overseas and ca
ability to pay on the part Of coun-
tries in need Of grain.
With no wartime controls over
transportation available this year
the job of moving such vast amount
Of grain abroad will be even more
difficult. Failure to meet export goals
will mean just that much more
wheat for carry over and q further
price depressor.
If funds were available and trans
portation no bottleneck, European
countries could take all the grain
this country could export, in the
opinion of most experts.
The corn outlook Is uncertain. The
special uid-month report issued by
the department July % showed a
15S, 900, ,000-bushel improvement in
the crop between July and Is. The
newest estimate of 2,770,930, 900
bushels surprised even the optimists.
There is a strong feeling among
department officials that the final
crop may 60 to around 5000, ,000, 900
bushels.
Frost a Factor
This was the Governments goal
for 1947. 1t would mean there would
be no pinch in livestock feed next
winter. Further, it would erase the
fear of meat shortages and high
prices at butcher counters late next
winter and early spring.
But there is another factor. Even
though production may be high. an
early frost before the corn has fully
matured and dried would produce
soft" corn. This will not store as
we'll as hard corn and lacks the
full feed value Of corn unharmed
by cold.
That explains why the depart
ment has launched an educational
program through colleges and the
Extension Service. Farmers are
being urged to buy artificial drying
equipment-if they can locate any
or to build corn cribs that are longer
and narrower, thus allowing more
exposed surface for the stored
corn.
The Illinois Agricultural Associa-
ton reported recently that farmers
in that State are eager to develop
drying methods for their corn but
that shortage Of fans and motors
prevent the movement from becom-
inn xx,iSoepraad