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WEEKLY MARKET REVIEW AND FARM OUTLOOK 



By G. L, Jordan 

 Professor, Agricultural Economics 



(Prepared December 6) 



(Highlights of the Weekly Market Review and Farm Outlook are broadcast each Friday 

 from 12; t^ to 12:55 p.m., as part of the Illinois Farm Hour, Station WILL, 580 kilo- 

 cycles.) 



Commodity Prices at Chicg^to 



Cash 



Deceanber 

 (close) 

 Wednesday 



futures 



Week ago 



Wheat (No. 2 red) 

 Com (No. 2 yellow) 

 Oats (No. 2 white) 

 Butter (92 score) 

 Eggs (current receipts) 

 Hogs (top price paid) 

 Cattle (top price paid) 

 Hog- com ratio, Chic€igo, 

 December 1 



$1.80 1/2* $1.80 l/2» 

 1.18 1/2* 1.18 1/2* 

 .75 1/2 .75 5/8 



12.2 



12.5 



m 



*Ceiling prices. • 



**Nominal. No cash sales. 



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

 sharp recovery Tuesday, December k» At Chicago $lU.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. Cat- 

 tle meurketings have fallen off within the past week, and this decline may have con- 

 tributed strength to the hog market as well as steadiness to the cattle market. Fanners 

 as a whole would seem to be well €tdvised to top their hogs, selling only those which 

 have reached the heavier weights and thus preventing gluts on the market during J)ecem- 

 ber emd January. 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. Producers held back lambs during the latter peurt of November, waiting for the 

 increase in the subsidy December 1. However, lamb prices declined after reaching a 

 peak Wednesday, November 28. The decline in many cases more theui offset the increase 

 in subsidy. Prices were more nearly steady Tuesday, December U. 



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

 steady, but rye prices have declined substcmtially and there have been heavy deliveries 

 of rye to fulfill commitments on December contracts. The collapse in rye prices wew 

 probably accelerated by the new ceiling on rye at $1.^ a bushel beginning June 1. 



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

 the production of grain alcohol to be used to produce synthetic rubber. The Office of 

 Rubber Reserve indicated that butadiene, which is used in rubber manufacture, costs 



