WEEFCLY MARKET REVIEW AND FAEM OUTLOOK 



# 



By G. L, Jordan 

 Professor, Agricu].tural Economics 



(Prepared July 12) 



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

 from 12:U8 to 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 580 kilo- 

 cycles.) 



Commodity Prices at Chicago 



Cesh 



September futures 



Wednesday 

 July 11, I9U5 



Week ago 



(close) 

 Wednesday 



Wheat (No. 2 red) 

 Corn (No. 2 yellow) 

 Oats (No. 2 white) 

 Butter (92 score) 

 Eggs (current receipts) 

 Hogs (top price paid) 

 Cattle (top price paid) 

 Hog-corn ratio, Chicago, 

 July 7 



$ 1.69 1/2 

 1.18 1/2** 

 .70 1/2 



.555* 

 1^.75* 

 18.00* 



12.1+ 



$1.70 l/U*** 



1.18 1/2** 



.75** 

 .kl* 



.555* 

 1^.75* 

 18.00* 



12.1+ 



Week ago 



$1.65 1/8 $1.61+ 5/8 

 1.18 l/2b* 1.18 1/2* 

 .65 1/8 .6h 3/8 



# 



*Ceiling prices. 

 **Nomlnal. No cash sales. 

 ***New wheat, graded No. 2 red, tough. 



Prices on the grain futures markets were erratic during the past week — not 

 because of any change in the cash situation, but because of changes in margin require- 

 ments. Rye futures wore especially hard hit. However, the milling demand for wheat 

 has remained strong, and all markets recovered Tuesday in anticipation of the rather 

 bearish com prospect. More and more attention is being given to the possibility of 

 further restricting exports of all grains except wheat, at least until new crop pros- 

 pects 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 absorbed by order buyers who shipped the cattle east. However, 

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

 vious week ccanmon, 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 ccxaplicated the cattle feeder's problems. This week medium to low grades 

 dragged, but choice steers were in active demand. 



Government crop estimate . The official government crop estimate of July 1 

 conditions was released Tuesday, July 10. The most striking feature was the half bil- 

 lion bushel reduction in corn 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. Last year we harvested 1,079 million bushels of wheat. Com pro- 

 duction is placed at 2,685 million bushels compared with the record crop of 5,228 mil- 

 lion bushels last year, Oats production is estimated at 1,1+19 million bushels, the 

 largest in 25 years and 255 million bushels above last year. The barley croR estimated 

 at 256 million bushels, is down slightly tram, last year, but rye production will be up. 



