ECONOMIC   INFORMATION
FOR INDIANA FARMERS
No. 10
April, 1942
HOG SITUATION
Large hog numbers in Indiana and prospects of a less favorable hog-corn
feeding ratio in the winter of 1942-43 point to the importance of Indiana
farmers adjusting fall pig breeding operations in line with probable available
feed supplies. Certain other crop and livestock enterprises will probab'y
increase in profitableness relative to hogs by the latter part of 1942. Although hog marketings are expected to average approximately 20 percent
larger for the period April to September than a year earlier, demand and
price factors appear to be sufficiently strong to keep hog prices fluctuating
near March, 1942, levels, allowing for the normal March to September seasonal trend, and not far from prices allowable under present and probable
wholesale pork ceilings. With expected receipts for the late fall and winter
of 1942-43 somewhere near 30 percent greater than for the previous year
and with the normal seasonal increase in receipts, substantially lower hog
prices are in prospect for this period than those prevailing in late summer
in spite of the increasing demand and tendency for higher prices in genera1.
1942 Hog Price Outlook Not Mate- maximum price for prime steam lard
rially Changed by Price Ceiling en    in  tierces  at  Chicago  was  set  at
Pork Products—Despite the price
ceilings put into effect on wholesale
pork products on March 23, the hog
price situation has not been materially changed. While a strong demand
for pork products is expected to keep
prices near the ceiling levels until
late summer or early fall, the fundamental forces of supply and demand
for pork products were not such as
to indicate materially higher prices
than present and probable 1942 price
ceilings on wholesale pork, except for
possibly short periods. During late
fall and winter the price ceilings will
likely have little effect because the
increased marketings of hogs are expected to keep hog prices below probable ceiling levels. Inasmuch as the
price of things farmers buy are rising, the parity price for hogs is rising. With the general uoward movement in prices, prebably by late summer the parity price for hogs will be
higher, and by nex: fall and winter
still higher.
Effective February 4, ceiling prices
for lard were again adjusted upward
by the Office of Price Administration. Under this second revision, the
12.695 cents per pound. This was
1.765 cents higher than the price ceiling of 10.93 cents established on January 2 and 2.845 cents higher than
the first ceiling of 9.85 cents set on
December 13, 1941.
General Price Level Continues to
Move Upward—The index of wholesale prices of all commodities rose
from 118 for January, 1941, to 139
for January, 1942. During this same
period the index of prices rec3ived
by farmers for all products sold rose
from 104 to 149 for the United
States. The index of prices paid by
farmers for commodities used in production and living rose from 123 to
146. This general movement upward
in all prices is a strong force affecting hog prices.
Domestic Demand Strong — Domestic consumer demand for pork
products continues strong and is expected to increase as conversion from
civilian to war prcducticn is more
nearly accomplished. Government
spending for defense in February
was running about two billion dollars a month higher than a year
earlier.   Increased buying powsr in