-2- 



'^^ have received on the Eu2X)pean front. One vriter indicates, for exanrple, that the 



weather on the western front has heen 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 ceiling prices at Chicago. Part of this stren^h reflects weather conditions 

 and bad roads, "but the hasic reason appears to "be the change in attitude toward the 

 duration of the war and requirements of our armed forces and allies with respect to 

 livestock products. Feed supplies are considerably larger per animal unit than last 

 year, but farmers will be encouraged to feed their hogs to heavy weights, an increase 

 in both spring and fall farrowings is encouraged in the l^k"^ goals and the government 

 has recently revised upward its estimate of the quantity of eggs needed for the armed 

 forces and lend-lease. Farmers also will be encouraged to increase milk production. 

 If the war in Europe is prolonged well into 19^5 > we are not likely to have e burden- 

 some supply of feed grains. However, less wheat probably will be used for feed than 

 during the past year. Any prolongation of the war means heavier government debt, ex- 

 pansion in buying power of consumers and greater difficulty in preventing further in- 

 flation. 



Ejggs. During the past week the War Food Administration announced that the 

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

 dozen for candled eggs; and in areas where marketing facilities for purchasing candled 

 eggs from producers cannot be made available, the minimum producer price will be 2k 

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

 designate purchasing agents in all areas prior to the beginning of heavy egg produc- 

 tion. The War Food Administration hopes that candling facilities can be provided in 

 all areas. In announcing this price support, the government has revised upward its 

 estimate of the quantity of eggs, particularly dried eggs, that it will need for the 

 armed forces and shipment to Russia and Great Britain. The domestic demand for 

 graded eggs and the demands of governmental agencies are expected to maintain usual 

 grside differentials in price . 



# 



In some areas of Illinois last year, the price of eggs to the farmer dropped 

 as low as 19 cents a dozen. This year the War Food Administration hopes to get its 

 organization set up in time to be able to purchase eggs directly from farmers at the 

 minimum support levels. There is, however, a need for substantial culling of flocks 

 in Illinois, The goals established recently call for selling one out of every four 

 hens before March 1, 19^5* In spite of some revision upward in government requliTements 

 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 com- 

 parison with the sale of milk and other livestock products. 



Noveniber livestock receipts . Receipts of salable hogs at 12 principal mar- 

 kets in November were 55 percent less than November 19^5. Cattle receipts were down 

 15 percent, but calf receipts were up 17 percent. Feeder and stocker steers sold at 

 Chicago, Kansas City, Omaha and St. Paul were down 50 percent from November 19'*5. 



Ceiling on live cattle rumored . A press association report says that a new 

 proposal for flat ceilings on live cattle will be submitted by the OPA to Stabiliza- 

 tion 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 

 circumatances where competition forces them to pay higher prices for cattle than they 

 can get for the meat under OPA ceilings. The small specialized cattle slaughterer who 



