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Extension Service 'in Agriculture and Home Economics 

 ^ University of Illinois College of Agriculture, Ur^ana 



WEEKLY EEVIEW AND FARM OUTLOOK LETTER 



By G, L. Joinian 

 Professor, Agricultural Economics 

 (Prepared October l8) Y^y*^ 



Grain prices rose to a new high level followed by some reaction in prices of 

 futures. Currently offers eire being made for com at ceiling prices plus all permis- 

 sible charges for com shipped as far ahead as next February. However, as more com 

 comes to market, the demEind for other grains may decline scaaewhat. The October 1 re- 

 port of stocks of grain on farms shows that feeding of corn was heavy in the July- 

 through -Sept ember period. The corn waa fed to an increased number of hogs and poultry, 

 6uid hogs were fed to heavier weights. The large livestock population and the favor- 

 able hog-corn feeding ratio will sustain the demand for com for many months 



A surplus of turkeys is in prospect this fall as the result of reduced armj 

 requirements . 



A speaker at the meeting of the Grain and Feed Dealers' National Association 

 told the group last week that American farmers are going to produce so much grain In 

 peacetime that converting it to alcohol will be the only means of avoiding disastrous 

 surpluses. He said that better farming mjethods, including the replacement of 12 mil- 

 lion horses and mules by two million tractors, mesms that in 1950 the United States 

 can produce as much com as in 19^U on 58 million fewer acres. 



Based on the October 1 government estimate, the aggregate total crop produc- 

 tion will probably equal that of the exceptionally favorable years of 19^2 and 19^^ 

 and will exceed the production in the big year 19^3 by about 6 percent. Food grain 

 production is the largest and feed grain production the second largest on record. Rec- 

 ord crops are expected for wheat, oats, rice, soybeans, peanuts, tobacco, peaches, 

 pears, early and midseason oranges, grapefruit, almonds, hops and truck crops for mar- 

 ket. Near-record crops are in prospect for hay, potatoes, flaxseed, sugar cane, grapes, 

 com and sorghum grain. Milk production promises to establish a new record. 



For the month of August 19^5 the hog-corn ratio for the U. S. was 8 percent 

 above the long-time August avereige. The butterfat-feed ratio was up 17 percent, the 

 milk-feed ratio up 12 percent and the egg-feed ratio up l6 percent. 



Developments in the cattle feeding situation to early October indicated that 

 the volume of cattle fed during the coming winter feeding season may be little dif- 

 ferent from that of the winter season of IShk-k^, Indications point to an increase in 

 the eastern com belt, a decrease in the Great Plains area from Kansas to Texas and 

 little change in the far-western states. A large supply of feeder cattle may be avail- 

 able to meet the Increased demand resulting from relatively large supplies of soft 

 corn. 



The early October report indicates that the number of lambs and sheep to be 

 fed for the coming winter and spring meurket will be less than the number fed a year 

 earlier. Feeding is expected to be on a larger scale in the eastern corn belt but 

 will be reduced in the western com belt and in the western states. 



Farm wage rates October 1 were 5^5 percent of the 1910- li^ average. Wage 

 rates were generally the same or higher than on July 1 in all but the southern states. 



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



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



H. P. Rusk, Director. Acts approved by Congress May 8 and June 50, 191U. 





