

* 



PROSPECTS FOR CATTLE FEEDING IN 19l^p-U6 

 By L. F. Stlce, Extension Marketing Specialist 



Because of present high prices of feeder cattle and uncertainties as to feed 

 supplies, future demand and government policies with respect to subsidies and price ceil- 

 ings, Illinois cattle feeders have a difficult problem in deciding on the kind and number 

 of cattle, if any, to put into feedlots this fall. 



Civilian supplies of meats will be more plentiful in 19^6 than the extremely 

 short supplies of 19^5* but the demand will continue strong, even though consumer incomes 

 will decline from wartime levels. As meat supplies increase and consumer incomes decline, 

 the grading of slaughter cattle will become more strict and cattle prices will react in a 

 more normal manner to seasonal changes in marketings. The result may be somewhat lower 

 prices for finished cattle in the late spring and early summer of 19^6 than those which 

 have prevailed in 19^5^ but no drastic decline is expected. The ending of slaughter sub- 

 sidies without increases or elimination of price ceilings on beef will result in lower re- 

 turns to fanaers. 



Prices of feeder cattle have declined since midsummer, but whether they decline 

 sufficiently to permit the purchase of cattle for feeding with much prospect for profit 

 remains to be seen. Marketings have been lighter in July and August than in 19^^ and may 

 be bunched in September and October (see chart). However, a smaller supply of yearlings, 

 t^he probability of soft corn, good feed conditions in the west and slaughter competition 

 for cattle in killing flesh are all bullish factors in the feeder cattle market. Cattle 

 feeders should watch the cattle market very closely diiring the next few weeks in order to 

 take advantage of any sharp price dips that might occur. 



WEEKLY RECEIPTS OF SALABLE CATTLE AND CALVES AT 12 MARKETS, 19^^ AND 19U5 



1^ 



Head 

 (000) 



350 



500 

 250 

 200 



150 



19^^ 



^/''. / 



\ I 

 \ I 



\ i 



» ' \ 



19^5 



UuloJ 



7J' 



XA.\'>1 .IxLJ-t.l. I I J. 



350 



300 



250 

 200 



Jan. Feb. Mar. ^pr. 



j^Lj^Ju^x^J^^jj^Ajjii^^ 1:50 



May J\me July Aug. Sept. Occ. Nov vec. 



