X Srtenslon Service In Agriculture emd YLoob Econoalcs 



Ifalveralty of Illinois College of Agriculture, Urbana 



C4^ 



^f WEEKLY REVIEW ABD FARM OUTLOOK USTTSR 



By 0. L. Jordan ^ . 



Professor, Agricultural Economics^ AUG ^ . 19^6 

 (Prepared Deceaber 6) \^*|> 



Following the coilapea In hog prices beginning November 30, ttere vas a 

 sharp recovery Tuesday, Deetmber 4. At Chleago $1^*^.85 was again paid for numerous 

 loads of barrows and gilts. This recovery verifies the opinion that the demand for 

 pork Is especially strong and that the only reason for a decline In prices below the 

 celling Is the development of bottlenecks In slaughtering. So long as receipts do 

 not exceed slau^terlng facilities, the price of hogs is likely to remain strong. 

 Farmers as a whole would seem to be well advised to top their hogs, selling cxily those 

 which have reached the heavier wel^ts azid thus preventing gluts on the market during 

 December and January. Peuskers probably will be able to handle nore hogs In Jaxojtxj 

 than In December, but heavy runs may continue to cause price declines during the next 

 few weeks. 



Wheat and com prices have been firm at the celling. Oats prices have been 

 steady, but rye prices have declined substantially. The collapse In rye prices was 

 probably accelerated by the new celling on rye at $1.U2 a bushel beginning June 1. 



Announcement has been made that no more grain of any kind will be used for 

 the production of grain alcohol to be used to produce synthetic rubber. Butadiene, 

 which Is used In rubber manufactitre, costs about kO cents a pound \rhen made from alco* 

 hoi conqpared with eight to 10 cents a pound from petroleum. 



National production goals have been announced. State goals will be worked 

 out In detail during December. Production Is expected to provide for a civilian per 

 capita consumption hl^er than during war years. Goals for feed grains. Including 

 com, barley, oats and grain sor^^ums, are all at or sll^^tly above 19**^^ Indicated 

 production. The goal of soybeans for beans Is reduced 10 percent, com up 3 percent, 

 oats unchanged euid barley up 9 percent; all tame hay up 1 percent and hay seeds up l6 

 percent. In general a decline Is expected In numbers of livestock on farms. The goals 

 call for 2 percent reduction in milk production, a decline of 13 percent In the number 

 of hens and pullets on fcmns January 1, a decline of 15 percent In egg production, a 

 decline of 1? percent In the nuniber of chicks raised on farma, a decline of 10 percent 

 In the number of t\urkeys raised, an Increase of 1 percent In spring pigs saved, a de- 

 cline of 2 percent In the nuober of cattle and calves on farms December 31 and a de- 

 cline of 3 percent In the nusiber of beef cattle on farms December 31* No change Is 

 ' called for In the nvanber of sheep and lainbs <m farms . 



Prices received by farmers averaged 11? percent of parity In mld-Noveaiber 

 eoo^ared with llU percent In October and 115 percent a year ago. 



I understand that the com loan In Illinois will be 3 cents a bushel hl^^r 

 than last year. This differential probably will apj>ly to each county. 



The purchasing power of the Chinese dollar In Shanghai Is only 2.3 cents. 

 This severe inflation is attributed to an Influx of IT. S. and Chinese money, suspended 

 production, population Increase and hoarding. Large supplies of money and restricted 

 production of manufactured goods may leeid to more inflation in the U. S. 



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Cooperative Extension Work in Agriculture and Home Economics: Iftiiverslty 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 30, 191*|.. 



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