t6lj 5^ ^ Extension Service in Agriculture and Home Economics 



' UnlTereity of Illinois College of Agriculture, Urbana nnr, i a^r^^^ 



^^ WEEKLY REVIEW AND FAEM OUTLOOK LETTER 



By G. L. Jordan / "^^^ 



Professor, Agricultural Economics ^^^'^^i^^SBAHDRY 

 (Prepared November Ip) k 



Prices of corn and wheat remain at the ceilings, but oats and rye futures 

 price movementfl have been erratic during the past week, climbing to new hig^ followed 

 by reactions Tuesday, November 15. The December rye future sold at $1.90 l/8, the 

 highest price for^any type of rye future In 2^ years. May oats came within 1 5 A 

 cents of the ceiling. Most classes of cattle were steady. The largest hog supply 

 since mid-January sold at celling prices. The government reported that October ship- 

 ments of stocker and feeder cattle into the corn-belt states were the largest on rec- 

 ord for that month and revised upward the estimate of the number of cattle ,to be fed 

 in the winter season. It now seems probable that more cattle will be fed for market 

 both in the 11 corn-belt states and in adjoining regions than were fed last year, and 

 that the total on feed JanuEiry 1, 19^6, will be a near-record number. Concern is ex- 

 pressed in some quarters that there may be a heavy run of cattle to market next spring 

 or early summer. 



Stabilization Administrator Judge John 0. Collett said that the government 

 proposes to end virtually all wartime food subsidies by June 50, 19^6. Mr. Chester 

 Bowles of OPA said, "This office will take no action to decrease the amount of the 

 direct feeder subsidy in such a way as to destroy the proper expectation of the feeder 

 that cattle which he has commenced to feed in reliance upon the subsidy will be in- 

 eligible for subsidy payment. When conditions change sufficiently to warrant subsidy 

 reduction, feeders will be given ample advance notice of the proposed change in order 

 to permit them to adjust their operations." 



As indicated in a special section by Professor Stlce, supplies of feed per 

 animal unit are expected to be relatively large during 19^5-^6. However, the demand 

 for feed is expected to remain strong. Later In the season the demand from livestock 

 producers may decline somewhat, but exports of some feed grains and by-product feeds 

 are expected to Increase. Feeding rates are likely to continue at a high level during 

 19^5-^6 but possibly not so high as the near-record rate of feeding in 19^^-^5. Sup- 

 plies of high protein by-product feeds, on the basis of ollmeal equivalent, probably 

 will bl slightly lower than In 19^^-^5> and ollmeal prices may decline somewhat by the 

 summer or fall of 19^6, after the government's 19^5 crop commitments to support meal 

 prices run out. The supply of hay for the 19*^5-^6 season is one of the largest on 

 record and, in relation to the livestock to be fed, Is the largest In nearly 20 years. 



A decline Is expected during 19^6 in gross farm Income, cash receipts, ex- 

 penses of production and net Income to farm operators. Net Income of farmers in 19*'^ 

 may decline as much as 15 percent from 19^5; according to the U. S. Department of Agri- 

 culture. This would still leave the indicated total more than double the prewar aver- 

 age and higher than in any year prior to 19^5* Production expenses are expected to 

 reach a record peak this year and. to decline in 19^6. Farm wages are expected to fall, 

 and more hired help will be available in the next crop year. Expenditures for farm 

 equipment and farm rehabilitation in 19^6 are expected to Increase considerably as 

 machinery and building materials become available. 



The quantity of food available for civilians in 19^6, total and per capita, 

 '^ will be considerably greater than in 19^5 and may even exceed the high record of 19^i, • 

 which was 11 percent above 1955-1959. 



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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. 



E. P. Rusk, Director. Acts approved by Congress May 8 and June 50, 191^*-. 



