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Extension Service in Agriculture and Home Economics 

 University of Illinois College of Agriculture, Urbana 



"WEEKLY REVIEW AND FARM OUTLOOK LETTER 



By G. L. Jordan 

 Professor, Agricultural Economics^ 

 (Prepared December 6) \i^^ 



Following the collapse in hog prices beginning November 30, there vae a 

 sharp recovery Tuesday, Deo?mber h. At Chicago $ll4-.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 

 ceiling is the development of bottlenecks in slaughtering. So long as receipts do 

 not exceed slaughtering 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 only those 

 which have reached the heavier weights and thus preventing gluts on the market during 

 December and Jeuiuary. Packers probably will be able to handle more hogs in January 

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

 few weeks. 



Wheat and corn prices have been firm at the ceiling. Oats prices have been' 

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

 probably accelerated by the new ceiling 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 manufacture, costs about UO cents a pound when made from alco- 

 hol compared 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 higher than during war years. Goals for feed grains, including 

 com, barley, oats and grain sorghums, are all at or slightly above 19^5 indicated 

 production. The goal of soybeans for beans is reduced 10 percent, com up 5 percent, 

 oats unchanged and beirley 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 farms January 1, a decline of 15 percent in egg production, a 

 decline of 17 percent in the number of chicks raised on farms, a decline of 10 percent 

 in the number of turkeys raised, an increase of 1 percent in spring pigs saved, a de- 

 cline of 2 percent in the number of cattle emd calves on farms December 31 e^nd a de- 

 cline of 3 percent in the number of beef cattle on farms December 31* No change is 

 called for in the number of sheep and lambs on farms. 



Prices received by farmers averaged 117 percent of parity in mid-November 

 compared with ll^f percent in October oxA 115 percent a year ago. 



I understand that the com loan in Illinois will be 3* cents a bushel higher 

 than last year. This differential probably will apply 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 U". S. and Chinese money, suspended 

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

 production of inanufactured goods may lead to more inflation in the U. S. 



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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 30, I91U. 



