X^^^K**^ Extension Service in Agriculture and Home Economics 



University of Illinois College of Agriculture, Urbana 



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WEEKLY REVIEW AND FARM OUTLOOK LETTER 



By G. L. Jordan 

 Professor, Agricultural Economics 

 (Prepared November l) 1 "^ *-/ 5 



New com that arrived at Chicago during the week met a ready demand at ceil- 

 ing prices subject to official discounts for moisture. The lowest moisture test was 

 21,l|-0. The market for spot oats was steady to firm. Wheat prices have been strong as 

 a result of the continued large use of cash wheat by flour mills plus more liberal move- 

 ment of wheat into export channels. Heavy movement of wheat has resulted in lower 

 stocks than usual in interior mills, elevators and warehouses and at terminals, but 

 farm stocks are slightly higher than in recent years. 



Sales of cattle at the 12 principal mearkets Monday, October 29, were the 

 second largest of the year. In Chicago approximately 22,000 head were placed on sale, 

 and this was the largest number marketed on any one day since last February. The un- 

 loads of cattle at principal Missouri River centers ran better than 60 percent to 

 stockers and feeders. An increased percentage of western grass cattle eurrlved at 

 Chicago. There has been a recent tendency to pay the $l8 ceiling for all kinds of cat- 

 tle that could possibly be classed good and choice, even though not highly finished. 

 It appears that feeders eire trying to meet this minimum quality standard rather than 

 to sell shortfeds which would bring t^om $15 to $17.25 at this time. In spite of the 

 moderately heavy runs of stocker and feeder cattle, prices remain high. The range cat- 

 tle marketing season is already past its halfway mark, and with the strong demand from 

 corn-belt feeders it does not seem likely that there will be any substantial decline 

 in feeder cattle prices. 



The United States Department of Agriculture estimates that the "returns from 

 sales of meat animals probably will average moderately lower in 19^6 than in 19^5. The 

 supply of meat in 19^6 is likely to be about in balance, with demand at the 19^5 level 

 of wholesale and retail prices. If subsidy payments to slaughterers are removed in 

 19^6, some decline in cattle emd hog prices is likely to occur. Output of meat in 

 19^6 will continue at or moderately above the 19^5 level. Pork production may be mod- 

 erately greater in 19^6 than in 19^5 even if market weights of hogs are reduced. How- 

 ever, output of lamb and mutton will be reduced in 19^6, reflecting continuation of 

 the pronounced wartime decline in sheep numbers through 19^4-5," 



Prices of fats and oils in the United States probably will continue at high 

 levels through 19*4-6 and early 19^7* according to the United States Department of Agri- 

 culture. If price ceilings are removed in 19^6, prices of some fats and oils should 

 advance. It Is expected, however, that prices of oilseed meal may be lower in late 

 19^6 and 19*4-7 because of reduction in the demand for high-protein feeds, reflecting a 

 probable decline in returns to poultry and dairy producers . Any reduction in prices 

 of meal would be reflected in lower prices of soybeans and other domestic oilseeds. • 

 The prices feunaers receive at present for soybeans are approximately 50 cents higher 

 than the oil and meal equivalent value of soybeans. If the processor's subsidy is 

 removed after the 19*4-5 crop contracts are completed, prices to growers would decline 

 by approximately the amount of the subsidy. Soybean acreage smd production may de- 

 '^llne in 19*<-6 as a result of shifts into hay and pasture. The government suggests 

 that a crop 5 to 10 percent smaller than in 19*4-5 would bring supplies of edible fats 

 ^id olio Into balance with probable demand at 19*v5 prices. 



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'^ooperative 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, 191*^. 



