c^/4^ Eitension Service In AgrlcultiDre and Home Jlconomlcs 



^Z^*^ Iftiiverslty of Illinois College of Agriculture, Urbana RECEIVED 



^ WEEKLY REVIEW AM) FAEM OUTLOOK LETTER / -.--^ - 4 <q*j 



APR 101?46 



B7 G. L* Jordan itmifli if ^^—^^ 



Professor, Agricultural Economics /\pp 10 ^^^ 

 (Prepared December ill- ) l<\^^ 



Principal derelopnente during the veek include (l) ^iilfcf-^D&iiyUfWQffle ceil- 

 ing to ♦l^#75# Chicago hasis, regardless of weight, for all hogs other than sovs, 

 boars and stags; (2) the announcement of support prices for eggs at 2\ cents a dozen 

 to farmers for straight-run or 27 cents for candled eggs; «md vj) an increase of four 

 cents in the vheat price ceiling. 



Raising the ceiling to $ll|-.75 for hogs weighing in excess of 270 pounds will 

 probably haye the effect of inducing farmers to feed their hogs to hearier wcifrhta, 

 particularly in the western part of the com belt, irtiere com supplies are extremely 

 large in relation to hog numbers, niis revision probably reflects the opinion that 

 the end of the war in Europe is not in sight and that more pork products will be 

 needed for the armed forces than was originally anticipated. 



Raising the ^eat ceiling four cents at Chicago was done to meet demands of 

 the new law requiring parity for producers and to provide for some slight increase in 

 the future parity index. Girain prices hare strengthened considerably during the pe^t 

 three months. Part of this strength can be attributed to 'Uie prolongation of the war 

 caused by the bad breaks we have received on the European front. One writer indicates, 

 for exsople^ that the weather on the vesteni fjrant has been the worst in 100 7«ars and 

 has been an Ijqportant factor in slowing the advance of the allied armies. Com has 

 sold within the past few days at ceiling prices at Chicago. Part of this strength re- 

 flects weather conditions and bad roads, but the bcuBic reason appears to be the change 

 in attitude towcurd the duration of the war. Any prolongation of the war means heavier 

 government debt, expansion in buying power of ooosuaers and greater difficulty in pre- 

 venting further inflation. 



During the past week the War Food Administration announced that the govern- 

 ment would stqpport egg prices to producers in 19^^ at a minimum of 27 cents a doeen 

 for candled eggs; and in areas whez^ marketing facilities for pisrchasing cax^dled eggs 

 from producers cannot be made available, the winlaum producer price will be ^ cents a 

 dozen to feunaers for straight-run eggs. The go v eiim ent will, if necessary, designate 

 purchasing agents in all arecui prior to the beginning of heavy egg production. 



In spite of sane revision upward in gove rn ment requirements for eggs, present 

 hen numbers suggest egg prices at support levels during the flush season of production 

 unless flocks are heavily culled. The support prices established do not provide for 

 profitable use of the farmer's feed or labor, particularly in comparison with the sale 

 of milk and other livestock products. 



A press association report says that a new proposal for flat ceilings on 

 live cattle will be submitted by the OPA to Stabilisation Director Fred M. Yinson. The 

 suggestien appcu^ently originated as a result of threatened shutdown of retail neat 

 markets in New York and New Jersey. Dealers in that area contend that it is impossible 

 for them to operate at a profit under present circumstances where coBg;>etition forces 

 them to pay hi^er prices for cattle -Uiaa they can get for the meat under OQPA ceilings. 

 ^Because of prodiicer opposition to cattle ceilings, some other way may be found to solve 

 e problem of the eastern specialized slan^terers. 



^^^Be< 

 Wth< 



Cooperative Extension Work in Agriculture and Home Economics: University of Illinois 

 College of Agriculture and the United States Department of Agriculture cooperating. 

 H. P. Ruak, Director. Acts approved by Congress May 8 and June 30, 1911^. 



