FOOD PRICES DECLINE

Otago Daily Times, Issue 26693, 12 February 1948, Page 7

FOOD PRICES DECLINE

NEW YORK STOCK EXCHANGE WELCOME RELIEF FOR HOUSEWIVES Rec. 9 p.m. NEW YORK, Feb. 10. Grain and cotton prices dropped to their permissible limits on the nation’s commodity markets to-day, and stock bonds on the New York Stock Exchange also slumped to the lowest level since mid-June, 1947, with losses from one to five points on a turnover exceeding 1,000,000 shares. The stock market break is estimated to have wiped out over 1,000,000,000 dollars in the valuation of listed issues. The tumbling prices, however, were good news to housewives and already an imposing list of retailers throughout the nation has reduced prices for pork, beef, flour, bread, butter, lard and many other food items.

Packers tried to combat the falling livestock prices by keeping their animals off the market but the returns still dropped. .Only 5500 saleable pigs were shipped, compared with 14.000 yesterday. Cattle totalled 5000. compared with 18,000. The Agriculture Department’s grain crop report, which was awaited with special interest to-day, was issued with the usual elaborate secrecy. The Crop Reporting Board correlated its vital information behind locked doors in a room with the windows closed and shutters drawn. All telephones were disconnected and the entire corridor outside closed off. At exactly 3 p.m., when every commodity market in the country that deals in futures was closed, newspapermen were called into a big empty room. When the second hand of the clock reached 12 they were given a copy of the crop report. The press telephones, which had also been disconnected, were plugged in and news of the crop estimates was allowed to be sent.

The drastic precautions were taken because the crop reports contain accurate estimates of. the wheat. 'maize, cotton, and other crops throughout the United States and have a major effect on commodity prices.