t\ 



"ITf / L^^ Extension Service In Agriculture gmd Home Economics 



University of Illinois College of Agriculture, Urbana 



O^ 



X 



WEEKLY REVIEW AND FARM OUTLOOK LETTER 



By G. L. Jordan 

 Professor, Agricultui^l Economics 

 (Prepared October ll) ^ ^, - c. 



With com at the celling, a great deal of interest has been shown in oate 

 during the past few weeks and oats prices have risen cohsiderably. The strength in 

 wheat prices has been maintained by the strong demand from millers and distillers, by 

 heavy exports and by the inflationary implications of the Pace Bill. If the Pace 

 Bill becomes a law, p€irlty auad support prices will be raised substantially. 



The hog price ceilings at Chicago and other markets were raised during the 

 past week. New ceilings at Chicago are ilU.S^ and $lU.10. Feeder cattle prices have 

 also risen during the past two weeks. Market analysts point out that the market for 

 stocker and feeder cattle was strengthened by the excessive September rainfall fol- 

 lowed by cold weather in the com belt and frosts which prevented the maturity of much 

 of the late-planted corn. However, the October 1 crop report forecasts a com crop in 

 excess of three billion bushels. Apparently many farmers who were waiting for lower 

 prices on replacement cattle have decided to get into the market even though prices of 

 feeder cattle are rising counter to the normal seasonal trend. On the other hajid, 

 slaughterers are not bidding as competitively for medium grade steers as they were 

 several months ago. One of the uncertainties in the outlook for cattle feeding is the 

 possibility of the withdrawal of subsidy payments on slaufi^ter cattle. The government 

 expects hog prices to remain at ceilings except for a possible temporary decline when 

 marketings reach a seasonal peak in December or January. 



Ample supplies of turkeys are forecast for the coming holiday season. The 

 I9I4.P turkey crop is roughly one-fifth larger than last year's production and restric- 

 tions have been removed from turkey marketing. 



As a result of high yields on reduced acreage, the United States has a po- 

 tato crop 15 percent above the ten-year prewar average. Militcury needs are reduced, 

 and potato growers in Maine were receiving about two-thirds of parity for their crop. 

 Growers demanded relief, and the government has purchased several million bushels of 

 potatoes to get them off the meurket cuid is offering nonrecourse loans at 90 percent of 

 parity to growers who will store the potatoes. 



Egg production is about 55 percent above prewar. Cancellation of military 

 and lend-lease contracts has reduced demand by about 12 percent. With larger meat 

 supplies in prospect, consumers will eat fewer eggs. As a result of this heavy produc- 

 tion and decline of demand, some plan will have to be worked out to support egg prices 

 next spring and some means found of disposing of the suiticlpated surplus. 



A study by life insurance companies disclosed that the American farmer has 

 emerged from the war period with nearly $2.00 in financial assets for every $1.00 

 owed. At the start of 19^5, assets in the form of demand eu:id time deposits, currency, 

 U. S. savings bonds, crop receipts and investments in cooperatives totaled about 17 

 billion dollars, but total debts were only about nine billion dollars. At the begin- 

 ning of 19'K), assets were about 5 l/k billion dollars euid debts of the rural popula- 

 ^ tion were about 10 billion dollars. 



-0- ' 



^cooperative Extension Work in Agriculture and Home Economics: University of Illinois 



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



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



I 



