Texas. and Arkansas. The Economic Adjustment Administration deferring the purchase of the allocation for China. and the fact that it is estimated that more than 50 percent of the remaining rice stocks in the States mentioned is of an inferior grade and poor milling quality. presents a major problem of distribution. and many of our growers and millers are becoming somewhat disturbed as to the sale of the remainder of the stock on hand. and while the worldwide demand for rice Is in excess of the available supply at this time. the deferment of the purchase of rice for relief purposes in China by the Economic Adjustment Administration is deplored as the industry had anticipated the utilization of alargeportion of the low grades in that program. In previous years the Government has taken all of the lowgrade rice and exported it on a price basis that would return to farmers approximately the same price that they received for the better grades. however. it must be borne in mind that conditions have changed and the Asiatic countries. which produced the major portion of the world supply prior to the war. were forced to reduce their production during the war to a point where the United States was called upon to expand their production in order to make up some of the deficit. and.as a result of the scarcity of this product. prices for rice. like all other scarce commodities. Increased in price comparable with prices prevailing during the First World War. Other factors have now further changed the picture. Not only has the United States increased its production but a number of South American countries have expanded their production. and the Asiatic countries are now being .rehabilitated. and they also are rapidly Increasing their production. and from .this time on the United States producers can look for a competitive market. I think one of the best discussions of the situation in respect to commodity prices. including grains. hogs. and livestock is that by J. H.