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percentage of western grass cattle arrived at Chicago. There has been a recent tend- 

 ency to pay the $l8 celling for all kinds of cattle that could possibly be classed 

 good and choice, even thoijgh not hi^pily finished. It appears that feeders are trying 

 to meet this minlinum quality standard rather than to sell shortfeds which would Bring 

 from $15 to $17.25 at this time. In spite of the moderately heavy runs of stocker cuid 

 feeder cattle, prices remain high. The range cattle marketing season Is alreeidy past 

 Its halfway mark, emd with the strong demand frcai corn-belt feeders It does not seem 

 likely that there will be any substantial decline In feeder cattle prices. 



The livestock outlook . 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 I9U6 Is likely to be about In balance with 

 demand at the 19^5 level of wholesale euid retail prices. If subsidy payments to 

 slaughterers axe removed In 19^> some decline in cattle and hog prices is likely to 

 occur. Output of meat in 19^ will continue at or moderately above the 19**-5 level. 

 Pork production may be moderately greater in 19^ than in 19^p even if market weights 

 of hogs are reduced. However, output of lamb Euid mutton will be reduced in 19^6, re- 

 flecting continuation of the pronounced wartime decline in sheep numbers through 19^5." 



Soybean prices ceilings sujiggested . The demand for soybeans is so strong 

 that there is likelihood of an advance in prices beyond the support level. As a 

 result, the Office of Price Administration has warned soybean dealers that if market 

 prices on this year's crop of beans continues to advance, it will immediately apply 

 ceilings. Usually ceilings are not applied until the harvest has been completed in 

 all sections. Meurket prices of soybeans tend to be below the ceiling prices proposed 

 for the next crop during the harvest season and to reach support prices late in 

 December or early in January. 



The fats and oils situation . Prices of fats and oils in the United States 

 probably will continue at high levels throu^ 19^ and early 19^1, according to the 

 United States Department of Agriculture. If price ceilings are removed In 19^> 

 prices of some fate and oils should advance. It Is ejcpected, however, that prices of 

 oilseed meal may be lower in late 19^6 and 19^7 because of reduction in the demand for 

 high -protein feeds, reflecting a probable decline in retiims to poultry and dairy pro- 

 ducers . Any reduction in prices of meal would be reflected in lower prices of soybeans 

 and other domestic oilseeds. The prices farmers receive at present for soybeans are 

 approximately 30 cents higher than the oil and meal equivalent value of soybeans. If 

 the processor's subsidy is removed after the 19^5 crop contracts are completed, prices 

 to growers would decline by approximately the amount of the subsidy. Soybean acreage 

 and production may decline in 19^6 as a result of shifts into hay and pastiure. The 

 government suggests that a crop 5 to 10 percent smaller than in 19^5 would bring sup- 

 plies of edible fats and oils into balance with probable demand at 19^5 F^'ces. This 

 would tend to maintain soybean prices at a level moderately above 90 perc. it of the 

 comparable price. The minimum support price under the "Steagall Amendment" would be 

 about $1.50 a bushel. 



Lard prices may decline in mld-19^7 M.a, result of Increased competition 

 from lower priced fats (notably tropical oils and whale oil) in European markets. A 

 decline in lard prices would tend to depress prices of other fats and oils in the 

 United States, but no major decline in fats and oils prices is likely in I9U7 unless a 

 general business recession occurs. Some increases in imports of fats and oils are 

 likely in 19^6. 



