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j 



percent atove June 19^3; in May they were up 52 percent. Cattle receipts were up 211- 

 percent for June compared to l8 percent in May. There is also seme change In the 

 feeder and stockor cattle markets. In May rocoipte at four markets wore 5^ percent 

 "below May 19^3, hut for Juno thoy wore down only 9 porcont. For the six months Janu- 

 ary to Juno thoy woro down 54 percent. The average weight of hogs rocolved at Chicago 

 was 2^6 pounds In Juno comp£u:'cd to 250 pounds a year ago and 2kh pounds in May. 



Not only are hog receipts declining fast enough to eliminate the price de- 

 pressing carry-overs of recent weeks €ind to force packers to sharply increase their 

 bids, hut the government also reports that the cold-storage situation is improving so 

 rapidly that we shall prohahly ho ahle to take caro of all out produce for the resti 

 of the year. 



Pricos of farm products . In reporting prices received by farmers as of 

 Juno 15, the State Agricultural Statisticifiin said that Illinois prices dropped three 

 points during tho past month and pricos woro only a fraction of 1 percent above June 

 19^5. For tho month all prices oxcopt those of poultry and eggs showed declines. 

 Poultry and eggs were selling at oxtromely low levels in May. Ratio of pricos re- 

 ceived to prices paid dropped from 110 porcont Df tho basb period in May to 106 por- 

 cont in June, For tho United States tho dcclino was from 111 porcont to 110 percent. 

 Pricos paid by farmers romainod unchanged. 



The Bureau of Agricultural Econcmlcs reports some slackening of industrial 

 production since last fall, and that the number of persons employed in nonagrlcultural 

 establiflhments is smaller than a year ago by more than a million. However, the gen- 

 eral trend of average hourly and weekly earnings of factory workers has been upward 

 for many months, and there arc no signs of any decline in the buying power of civil- 

 ians. Nonagrlcultural income payments are still about 10 percent above a year ago. 

 Undor thoso circumstances it would bo logical to oxpoct farm prices to bo influenced 

 almost ©ntiroly by changes in supplies and govornmont regulations. 



The price control bill . The price control extension act signed by the Presi- 

 dent excluded the item reported in the June 15 review which required processors of 

 agricultural products who failed to pay parity prices to charge no more than 90 per- 

 cent of the OPA celling price for a finished article. Instead the responsibility was 

 placed upon the President to make an effort to obtain as near parity as possible for 

 agricultural products. The greatest pressure for the amendment to force the payment 

 of parity prices came from the cotton states . As a result, the Office of Price Ad- 

 ministration has already raised the price coiling which manufacturers may charge for 

 cotton goods. Most of thoso prlco incroasos will bo passed on to the consumor. The 

 action will have a tondoncy to strengthen the prlco paid for cotton. It Is very 

 likely that any plan that tho govornmont would use to raise wheat prices to parity 

 would require appropriations. With Congress on vacation until after Labor Day, no 

 such appropriation can bo made now. 



Beef cattle . The beef cattle situation promises disturbance of the same 

 nature as in the hog marketing situation during the past few months. The goal for 

 cattle slaughter is 56J million head by the end of 19^. During June cattle receipts 

 were a little higher than a year ago, but the rate of increase is not enough higher to 

 reach 56| million head without considerable acceleration in marketings. The War Food 

 Administration hopes to prevent a pillng-up of beef cattle such as occurred with hogs. 

 Professor Sblce, in another section of this report, makes some suggestions to those 

 having fat cattle. Unless the peak of marketing is reached earlier than last year, 

 packers, operating with greatly reduced personnel, will find themselves unable to 

 handle the deluge of cattle that will come from the ranges and the com belt in 

 October. The railroads have given assurance that thoy can supply the livestock cars 



