33«J 



X^^ *(o(t>^^^ Extension Service in Agriculture and Heme Economice 



yi University of Illinois College of Agriculture, Urbana 



i 



WEEKLY REVIEW AND FARM OUTLOOK LETTER 



"by G, L. Jordan 

 Professor, Agricultural Economics 

 (Prepared July 12) '^ :" 



Prices on the grain futures markets were erratic during the past week "because 

 of changes in margin requirements. The milling demand for wheat has remained strong. 

 More and more attention is "being given to th ^ possibility of further restricting exports 

 of all grains except wheat, at least until new crop prospects are a little more clearly 

 defined. 



There were heavy runs of fed cattle Monday and Tuesday of this week. Monday 

 the large run was well a"bsorhed "by order "buyers who shipped the cattle east. However, 

 the receipts were again large Tuesday, and prices declined somewhat. During the pre- 

 vious week common, medium and average good grade grassy steers advanced as much as 

 50 cents. This was contrary to the usual seasonal trend and represented a situation in 

 plain cattle that has not "been seen in several years. The rise in the cost of feeder 

 cattle relative to the price that can "be received for the finished product has further 

 complicated the cattle feeder's problems. This week medium to low grades dragged, "but 

 choice steers were in active demand. 



The most striking feature of the government crop report was the half "billion 

 "bushel reduction in com production compared with last year. On the other hand, the 

 total wheat production is estimated at 1,129 million bushels, which would be the largest 

 on record. Com production is placed at 2,685 million bushels compared with the record 

 crop of 5,228 million bushels last year. Oats production is estimated at 1,^19 million 

 bushels, the largest in 25 years and 255 million bushels above last year. The barley 

 crop, estimated at 256 million bushels, is down slightly from last year, but rye pro- 

 duction will be up. Part of the reduction in com producticxi will be offset by an in- 

 crease of about 186 million bushels in the stocks of com on farms July 1. Oats holdings 

 were also up 26 million bushels, but farm stocks of wheat were down Ik million bushele. 

 Another large acreage of soybeans is in prospect for 19^5, but the acreage of beans grown 

 alone for all purposes is down 2 percent from last year. The following comparisons 

 apply to Illinois: Winter wheat production, July 1 estimate, 28.1 million bushels; fi- 

 nal 19i;U, 2k,3 million bushels. Oats production, July 1 estimate, 15^.2 million bushels 

 (102.0 million bushels). Com production, July 1 estimate, 365.5 million bushels (^05-7 

 million bushels). 



Prices of the principal products ranked as follows June 15 for the U.S. : 



Percent Percent Percent 



Item of parity Item of parity Item of parity 



Potatoes lifif Soybeans I5I Eggs 112 



Chickens lifO Milk 125 Com 100 



Beef cattle I58 Butterfat 120 Wheat 98 



Lambs 152 "Veal calves II8 Oats 98 



Wool 152 Hogs 112 Hay 77 



The largest potato crop ever reported is in prospect for this year. The 

 crop is forecast at 65. 1 million bushels this year compared with 52.7 million bushels 

 in 19iflf. 



-0- 



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



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



H. P. Rusk, Director, Acts approved by Congress May 8 and June 50, I91U. 



