Page 6 THE BATTALION
TUESDAY. JUNE 16, 1981
National
World wheat export decreased
United Press International
WASHINGTON — A month
ago, analysts believed world grain
stocks in the summer of 1982
would rise to 195 million tons, a
healthy 30 million-ton increase
over stocks this summer.
In the imprecise crystal hall
exercise of predicting conditions
over the next year, Agriculture
Department experts already have
reduced the stocks figure to 189
million tons.
That would still he an increase
over 1980-81. World wheat pro
duction is expected to exceed con
sumption in 1981-82. The oppo
site has been true in the worl
dwide crop year that comes to a
close June 30.
Freeze damage in Kansas and
the Central Plains and dry weath
er in Chinese wheat regions of
Henan, Shandong and Hebei have
made a difference in world wheat
production expectations.
Eastern Europe’s wheat crop is
down a little due to late planting
and poor winter conditions.
At the same time, experts be
lieve more wheat will be traded
than they predicted a month ago.
If China and Eastern Europe pro
duce less, those nations will have
to import more wheat. India is ex
pected to be forced to import
wheat.
The new estimate of 1981-82
world grain trade, issued last week
in the Agriculture Department’s
World Grain Situation and Out
look circular, was a record 219 mil
lion tons, 2 million tons more than
estimated in May.
“The composition of world grain
trade is forecast to change with
expected larger trade in wheat,
but slightly reduced trade in
coarse grains, compared to a
month ago,” the department said.
“Increased wheat demand to
meet domestic requirements is
anticipated in some importing
countries while lower coarse grain
trade reflects a continued optimis
tic outlook for production in im
porting countries,” the depart
ment continued.
Wheat stocks are expected to
increase 12 million tons by the
summer of 1982, unless weather
alters production estimates or
lower prices cause a significant
shift in use of wheat for use as
livestock feed, the circular said.
World wheat trade is expected
to reach a record of 96 million
tons, which would be 2.3 million
tons above the level in the worl
dwide season ending June 30.
U.S. experts believe the United
States will be the only major ex
porting nation with sufficient
wheat to meet the extra demand,
so American analysts have raised
their estimate of U.S. wheat ex
ports and predicted a dime per
bushel increase in the average
price of the 1981 crop.
The projected range is now
$3.80 to $4.40 per bushel.
Australia, Argentina and Cana
da are not expected to have suffi
cient stocks to meet increased de
mand for wheat.
European Community exports
might fill some of the extra de
mand, but “this is unlikely given
the present crop outlook and the
reported effort to contain EC
budget expenditures for subsidi
zation of exports,’’ the circulaT
said.
Analysts made little change in
their estimates of world produc
tion of feed grains from May to
June. Lower production estimates
for Western Europe were offset by
higher estimates for Eastern
Europe.
The estimate of worldwide feed
grain stocks for the summer of
1982 is unchanged.
A prediction of imports of feed
grains for 1981-82 was adjusted
down a little. Producers in Japan
and Brazil are expected to feed
less to livestock.
“Recessionary pressures in
these nations have caused a signi
ficant reduction in livestock pro
ducer receipts with a subsequent
reduced demand for food,” the
circular said.
japan is expected to encourage
use of more of its surplus rice for
feed by pricing it below sorghum.
Japan apparently wants to replace
feed grains with 500,000 tons of
rice a year over the next three
years.
The Eastern European feed
grain crop may set a record so
those nations may import less.
Livestock production could ex
pand if weather is favorable.
Estimates of exports from
Argentina and Australia were
down a little from May to June.
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Insurance holders use lit
policies to get cheap lom
United Press International
WASHINGTON — Seeking low-interest loans
in today’s tight money market, Americans are
borrowing on their life insurance policies at Great
Depression levels.
Industry figures show consumers had bor
rowed $42.6 billion against their policies hy Feb
ruary — an amount equal to 8.8 percent of the
industry’s assets. The figure is the highest since
1935, when borrowing reached 15.2 percent of
assets.
The lure is loans that may be obtained at rates
as low as 5 percent at a time when banks are
charging as much as 16 percent.
Some policyholders are simply pulling their
money out to invest in certificates of deposit or
other high-interest devices.
The break on interest rates is increasingly
being limited to current policyholders.
Figures from the American Council on Life
Insurance showed that eight states have now
enacted laws that allow interest rates for loans on
newly written policies to be tied to a bond market
index now in the 13 to 14 percent range.
The interest rate for borrowing against those
policies as a result will vary by year.
Existing policies — which have borrowing
rates of from 5 to 8 percent — cannot be changed
and would not be affected by the new laws.
The eight states that have approved the indus
try-backed legislation are Arkansas, Connecticut,
Indiana, Maine, Nebraska, Utah, Virginia and
Washington. Similar legislation is under con
sideration in other states.
A council spokesman said the industry will
have to wait until similar laws are passed in a l
number of states before it will be possibleto
writing policies with the higher borrowingrf
Generally it is possible to borrow against||
cash value of a whole life insurance policy anJ
back the amount borrowed on the interestojH
loan.
Some consumers never pay back anytliiiijli|
the interest, reducing the face value of the pole'
by the amount of the indebtedness whenil|»|
off.
A spokesman said insurance companies, 4t|
traditionally have invested their assets in m
tages for commercial building projects arc ml
cutting back those kinds of commitments *
investing their money in flexible projects ill
more closely ride the ups and downs of the «l
nomy.
The National Insurance Consumer OipJ
tion, a group set up by Ralph Nader, saysitfcj
not oppose variable loan rates for policies thslpil
dividends — so-called participating policiesl
since assets and investments help determine^
vidends. Thus, it says, policyholders who t
borrow are protected against erosions oft
vidends.
But the group said it opposes variableratesis
“non-participating” policies — those paying
dividend. James Hunt, former Vermonti
ance commissioner who works for the group,
variable loan rates for “non-par” policies w
“rebound to the benefit of the issuing compane]
not to policyholders. We see this fact as inhere^
ly unfair.”
Some budget cuts may fall int|
‘booby traps’ on House floor
United Press International
WASHINGTON — Congress two budget com
mittees this week begin packaging hundreds of
budget cuts into a pair of bills that may run nearly
4,000 pages long.
The bills aim to slash government spending by $35
billion and drastically change priorities.
The final version — connecting actions of 29
individual committees — will embody the sharp
spending reductions proposed hy President Reagan
and ratified by Congress last month in the 1982
budget resolution.
Once enacted, it will cause massive changes in aid
to education, food stamps, health services, jobs and
job training, subsidized housing and many other
areas of government.
It also will put the brakes on many social programs
created in the last quarter-century under Democra
tic leadership.
The House and Senate will consider their respec
tive versions of the two bills next week. After the
measures are passed, dozens of differences between
them will be worked out by a giant conference com
mittee. Congressional leaders are shooting for final
action in late July.
For years, Republicans have argued the programs
lead to a dead end — that the private sector, and not
government, should be in the business of era®
work. Similarly, Republicans long have h;
sights on programs such as food stamps, wli
say are riddled with cheaters.
So, the job was not so tough in the Senate. Ini
preliminary estimates show Senate committra
almost $2 billion deeper than the $35bil!ionta
Rep. Leon Panetta, D-Calif., a member q
House Budget Committee, says most I louse jq
met or exceeded their goals, although fin
are not vet in.
However, some cuts rigged with political kij
traps that may explode when the bill reacti
House floor the week of June 22, such as a|)k
close thousands of rural post offices.
In other cases. Democrats like Education
Labor Chairman Carl Perkins, D-Ky., aresne:
fight the cuts they proposed when they read
floor. iiM
he C<
loton
sponso
Mass i
Speed
bikes i
lithe ra
But before that, the budget committeeshavecj
to do. This week, they must decide whether!
cuts are cuts at all — like the House EnergyCon
tee’s proposal to provide $3.9 billion forthestolij
petroleum reserve, but place it "off-budget
doesn’t affect overall totals. The Senate Enj
Committee took the same basic approach.
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Soviet oil
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United Press Internalicd - L The Aj
WASHINGTON-TheS the tourn
Union probably has moreoillFurlong,
the CIA thinks, making it ml® cently
the Kremlin would stageani®This ye
grab for oil in the Middle Ec j the sehoc
this century, a new govewtlthe sehoc
report says. record ly
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The study, prepared l» L Throu;
Library of Congress for the®'^
Economic Committee and® i/„ :
tied “Energy' in SovietioS® bolley
suggests the Soviet Union will®?,
main self-sufficient in enefl .. J"'’
least until the end of the Mr® 1 , j. ^'
, ,.1 All251
But the study conceded INI be cut tc
tire issue is clouded becauseW Other
Soviet experts are uncertain State, Ar
As a "worst case,” there® 13 ’ UC
cited recently revisedCIAproybrida I
tions that Soviet oil prodn(® uri '
will fall to 10.5 million barrels®^
ly hy 1985 and to 8 millfonto®
hy 1990, making the Soviets#®
est oil importers by the lattcrd®
The projections, it said.®
“more a possibility than a i
hood in our assessment. a
As its “best case” estinu®
used projections by the Em®
Commission for Europe, sMi;
Soviet production rising to Mi
lion barrels a clay in the If®
The Soviet Union is thew®
largest oil producer, at akis®
million barrels a clay. B
The study said deteriorating
lations between the Sovietl®
and the West could boost dia®
of a Soviets attempt to compli'' : l(
the Western oil supply pit®
I'M if .fhic ic iiMMl/zklw tali’
but "this is unlikely to tan g
form of overt military arstion. 5
“ Prior to 1990 (and indeed®
as can he foreseen until the
the century), it is simply noth®
that the U.S.S.R. would tale®
such as would be involved ins®
sive military action to secure? 1 ®
ter access to oil for Ea.*®
Europe,” it said. g
The report also referred to*®
is considered the Soviet Uni ^
ace in the hole — its natural-J
resources, specifically the# 1 jE 1
billion-dollar Siberia-to-Wcsl f IK
Europe Yamburg pipeline I
ject.