380 



Types and Market Classes of Live Stock 



illustrating the comparison between monthly average prices and aver- 

 age receipts at Chicago for ten years, 1913 to 1922 inclusive. The 

 chart strikingly illustrates the fact that supply and demand rule prices. 

 Demand for hogs for slaughter is fairly constant, hence supply very 

 largely determines prices. The chart explains why prices are highest 

 in the period from July to September, and lowest in December and 

 January. Increased receipts in May and June when fall pigs arrive in 

 numbers also has its effect in lowered prices. 



The chart does not take into account the monthly variations in 

 average weight of hogs. If this were done the correlation between 

 supply and price doubtless would be even more marked. 



It should be noted that when the monthly receipts are decreased, 

 one-half the price is not doubled, hence the correlation is not perfect. 



RECEIPTS 



Fig. 140. — Hog receipts and prices at Chicago. This chart shows average 

 monthly receipts of hogs in thousands and monthly average prices of hogs for ten 

 years, 1913 to 1922. Prices are represented by black bars. Receipts are represented 

 by white bars, but each white bar is prolonged in black to make all of equal length, 

 the longer the black coloring the smaller the average monthly receipts. This brings 

 out in striking manner the correlation between hog receipts and hog prices. 



This is partly explained by the fact that much pork is cured and is 

 stored in seasons of large receipts for consumption in seasons of small 

 receipts. But it is more largely due to the fact that pork is in competi- 

 tion with other meats and all meats are in competition with other kinds 

 of food. If the available supply of all human food were decreased one- 

 half, no doubt the price would more than double. 



