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WEEKLY MAPKET REVIEW AM) FARM OUTLOOK 



By G, L. Jordan 

 Professor, Agricultural Economics 



(Prepared December 1^) 



(Highlights of the Weekly Market Review and Farm Outlook are broadcast each Friday 

 from 12:i<-8 to 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 58O kilo- 

 cycles.) 



Commodity Prices at Chicago 



Cash 



Wednesday 



December 15 1 19^^ Week ago 



May futures 



(close) 



Wednesday Week ago 



Wheat (No. 2 red) 

 Com (No. 2 yellow) 

 Oats (No. 2 white) 

 ^tter (92 score) 

 ^ggs (current receipts) 

 Hogs (top price paid) 

 Cattle (top price paid) 

 Hog-corn ratio, Chicago 

 December 9 



I*. 



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$ 1.75 7/8** 

 I.I5I** 

 .75-. 7^^ 

 .in* 



lif.25 

 18.00 



12.5 



$ 1.71 7/8** $1.65f 



1.16** 



.75** 

 M* 



lif*20 

 18.00 



12.6 



1.10^ 



$1.65 

 1.11 3 A 

 .61+ 



*Ceiling prices. 

 **Nominal. No cash sales. 



Principal developments during the week include (l) the raising of the ceil- 

 ing to $li*-.75> Chicago basis, regardless of weight, for all hogs other than sows, 

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

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

 four cents in the wheat price ceiling. 



Hog prices . Raising the ceiling to $11+ .75 for hogs weighing in excess of 270 

 pounds will probably have the effect of inducing fanners to feed their hogs to heavier 

 weights, 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 opin- 

 ion ^hat 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. No change was made in 

 the floor price of $12.50 at Chicago, but it is expected that the demand will remain 

 strong enough to prevent the average cost of barrows and gilts from dropping below 

 $15.50 at Chicago, particularly if the markets there are not temporarily flooded beyond 

 the capacity of packers to handle with their limited labor force. During the past week 

 the roads have been blocked in some areas and receipts have been relatively light. As 

 a result, prices of all livestock have been strong. 



Grain prices . Raising the wheat ceiling four cents at Chicago was done to 

 meet demands of the new law requiring pcirlty for producers and to provide for some 

 slight increase in the future parity index. No change in flour price ceilings is con- 

 templated, althovigh the subsidy to millers may be increased after January 1. 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 break:s we 



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