Qjg^ 'X Sztenelon Ser7ice In Agriculture and Hcne EccQcmlcs 



^ \ University of Illinois College of Agriculture, Urbana ^ 



WEEKLY RE7IEW AND FABM OUTLOCK LETTER 



AUG 2 S 1946 



Sgr 0. L. Whalin 

 Associate Professor, Agricultural £]^nsion 



(Prepared Septeittber 12) \^*\^ " 



Grain prices remained strong in spite of the September tunper crop report. 

 With small receipts, hog prices continued at ceilings. Cattle prices continued weak, 

 only a few loads hringing ceiling prices. All grades were under pressure and buyers* 

 discrimination extended even to strictly choice steers. Better cattle shewed renewed 

 strength Wednesday with removal of the federal slaughter restrictions. 



Western grass cattle hare hegun their flow in earnest to Chicago. Quality 

 is showing conslderahle Improvement, euid prices are about in line with those of a 

 year ago. 



Wheat prices at the end of the war (August 1^) averaged $1.^^ a bushel and 

 com $1.13 a bushel at the farm ccmpared with $2.05 for wheat and $1.38 for com at 

 the end of World War I. For two years after World War I fana prices for wheat and 

 com averaged considerably above parity, but during World War II wheat averaged 

 slleJitly below parity and com about parity. Farm prices of wheat August 15 averaged 

 95 per cent of pearl ty, whereas com avereiged 102 per cent. 



Another bumper crop is in prospect, according to the September federal crop 

 report. Outstanding was the estimate for another com crop in excess of 3 billion 

 bushels— 225,000 bushels more than was reported a month ago. The four major crops, 

 of which both wheat and oats are the hie^est of record, together with sorghum grains 

 and soybeans, promise a ccmblned production of 6,393 million bushels caqpared with 

 6,132 milllgn bushels harvested in \9kh. Continued favorable weather in September 

 and later than normal frosts will be necessaiy, the report stated, if these prospects 

 are to be borne out. 



Subsidies on cattle may be removed by April 1, 19'*6, according to a state- 

 ment by Clinton P. Anderson, Secretary of Agriculture. The date, he said, would be 

 announced far enough ahead to permit feeders to govern their purchases. 



* 



The Department of Agriculture and the OPA agree that meat rationing should 

 end as soon as supplies are sufficiently adequate and distribution is sufficiently 

 equitable to permit such action, according to a statement made by J. B. Hutson, Acting 

 Secretary of Agriculture. The present supply situation, however, doee not make pos- 

 sible predictions as to the exact time meat will be off rationing. 



The break in shell egg prices was Influenced by rumors of the end of meat 

 rationing on October 1. Demand had already weakened, since meat, poultry, cheese and 

 potatoes had become more plentiful. 



' -0- 



Cooperatlve Extension Work in Agriculture and Hcgne Economics: University of Illinois 



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



H. P. Busk, Director. Acts approved by Congress May 8 and June 30, 191^. 



