Q^ . a-* Extension Sei^ice in Agriculture and Home Economics 



^T' '^ V University of Illinois College of Agriculture, Urbana RECEIVED 



WEEKLY EEVIEW AND FARM OUTLOOK LETTER -^^^ - i ^q.* 

 ". Agricultural Economics Anr-, i n ,¥!*?r**" 



Pr6fessor, Agricultural Economics add i n iT^^q 

 V^V^Prepared December ll^) /A^^ ^^^ "-' '^^^^ 



Principal developments during the week Include (l) iihe-'WiifelAg''^viiSe cell- 

 ing to $ll4-,75, Chicago basis, regardless of weight, for all hogs other than sows, 

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

 to farmers for straight-run or 27 cents for candled eggs; and (5) an Increase of four 

 cents in the wheat price ceiling. 



Raising the ceiling to $ll4-.75 for hogs weighing in excess of 270 pounds will 

 probably have the effect of inducing feirmers to feed their hogs to heavier wei(?hts, 

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

 large in relation to hog numbers. This 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 wheat celling four cents at Chicago was done to meet demands of 

 the new law requiring peurity for producers and to provide for some slight Increase in 

 the future parity index. Grain prices have strengthened considerably during the past 

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

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

 for example, that the weather on the western front has been the worst in 100 years and 

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

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

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

 in attitude toward the duration of the^war. Any prolongation of the weo* means heavier 

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

 venting fiirther Inflation. 



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

 ment would support egg prices to producers in 19^5 at a minimum of 27 cents a dozen 

 for ceindled eggs; and In areas where marketing facilities for purchasing candled eggs 

 from producers cannot be made available, the minimum producer price will be 24 cents a 

 dozen to farmers for straight-run eggs. The government will, if necessary, designate 

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



In spite of some revision upward In government requirements for eggs, present 

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

 unless flocks eire 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 celllnrs on ■ 

 live cattle will be submitted by the OPA to Stabilization Director Fred M. Vinson. The 

 suggestion apparently originated as a result of threatened shutdown of retail meat 

 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 competition forces 

 them to pay higher prices for cattle than they can get for the meat under OPA ceilings. 

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

 'the problem of the eastern specialized slavighterers , 



-0- 



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

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

 H, P. Rusk, Director. Acts approved by Congress May 8 €md June 50, 191^-. 



