376 



Types and Market Classes of Live Stock 



The spread ^ in the price of hogs is usually narrowest in December, 

 January, and May. It is usually widest in August, September, and 

 October. The following figures are averages of ten years at the Chicago 

 market: ^ 



Average monthly spread in monthly extreme range of prices for mixed packing, medium, 

 and butcher hogs, 195-255 lbs., at Chicago for ten years 



Monthly Monthly 



Month Monthly receipts Month Monthly receipts 



spread Thousands spread Thousands 



957 

 779 



January ($1.69) 957 July 



February 1.85 779 August. . . . 



March 2.16 665 September. 



April 1.85 548 October . . . 



May (1.68) 618 November. 



June 1.83 627 December. 



Monthly 

 spread 



$2.57 

 3.88 

 3.35 

 3.58 



2.18 



(1.70) 



551 

 479 

 429 

 577 

 736 

 919 



These ten-year averages show twice as much spread in August, 

 September, and October as in December, January, and May. It may 

 be noted also that in a general way the spread narrows in months of 

 large receipts, and vice versa. Beginning in May, the spread in price 

 widens steadily to its greatest width in August, continues wide during 

 September and October, and then narrows from October to January. 

 It widens again, but to a lesser degree, from January to March, and 

 narrows from March to May. 



These variations in spread are explained by the fact that good 

 hogs are most numerous on the market in the months when the spring 

 pig crop and fall pig crop are marketed in largest numbers. The 

 spring crop makes its heaviest run in December and January. The 

 fall crop makes its heaviest run in May and June. During these 

 months the price of good hogs is depressed by large supplies. In 

 August, September, and October, good young hogs are held in the 



iThe spread is the difference in price. For example, if hog prices in a certain 

 day, week, or month range from $9 to $10, the spread is $1. 



2 Compiled from Drovers Journal Year Books of Figures covering the years 

 1912 to 1914, and 1916 to 1922, inclusive. 



