^^-*^^ Extension Service in Agriculture and Home Economics 



University of Illinois College of Agriculture, Urbana ^^^ 



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WEEKLY REVIEW AND FARM OUTLOOK LETTER ""^0%. ''v'f 



By G. L, Jordan *>s^ 



Professor, Agricultural Economics 

 (Prepaired October 25) 



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Hog prices remained at the ceiling even though there vas a slight seasonal 

 expansion in receipts, which is a normal development. This moderate expansion is ex- 

 pected to continue through November vlth a rather sizable increase in December. The 

 heavier marketings are expected to show up during the first quarter of 19^6. Cattle 

 prices have remained strong throughout the week with a slight weakening at the end. 

 All grain prices continued strong. 



The government has announced a lowered hog price support program for the 

 year beginning October 1, 19^6. The new support program assures farmers of a yearly 

 average of $12 a hundredweight with a system of weekly price variations. The present 

 $13 a hundredweight flat price guarantee has been extended from Septeiriber 1, 19^6, to 

 October 1, 19i<-6. At the time of announcing the new hog support price program, Clinton 

 P. Anderson, Secretary of Agriculture, called for a 19^4-6 spring crop of 52 million 

 hogs, practically the same as that produced in the spring of 19^5. 



If the current preliminary goals discussions of the United States Department 

 of Agriculture officials are any criterion, next year's soybean acreage goal will fall 

 between nine and 10 million acres, and the price support will come between $1.70 and 

 $1.75 a bushel. There is about 51 cents a bushel subsidy, on the average, in the pres- 

 ent $2.0^4- price support on soybeans. The fats and oils branch of the new Production 

 and Marketing Administration would like to lower the price support enough to remove 

 this subsidy. Soybean parity on September 15 was $1.67 a bushel, making the postwar 

 mandatory support, as of that date, $1.50 a bushel. 



Demand and supply factors for dairy products, except butter, in 19^6 are ex- 

 pected to be fairly well in balance at prices for whole milk somewhat lower than in 

 19^5. The supply of milk fat available for butter, however, is expected to be short 

 of demand. Military purchases of dairy products in 19^6 will be one-half to two- thirds 

 less than in the past two years. Export demand in 19^6 will be weaker than in 19^5 > 

 even if leirge credits are granted to foreign countries. 



The retail ceiling price of butter will be boosted 5 to 6 cents a pound No- 

 vember 8. John C, Collet, Stabilization Director, made this announcement in withdraw- 

 ing a wartime subsidy of 5 cents a pound paid to butter processors effective October 

 51. 



Production of fertilizer during World War II rose from 7 l/2 million tons in 

 1959 to 12 million in 19^^. Domestic capacity for production of nitrogen materials is 

 now far in excess of normal requirements. Supplies of sulphuric acid should now be 

 plentiful for the manufacture of superphosphate. Potash supplies will be siifficient to 

 meet all domestic requirements that can be anticipated, but probably little if any will 

 be available for export. Only the higher analysis grades may be available for pur- 

 chase. These higher grades may cost more per ton, but the price per unit of plant food 

 will generally be lower. 



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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 Congress May 8 and June 50, I91U 



