Economic and Marketing Information 
FOR INDIANA
FARMERS
INFORMATION
Lafayette,   Indiana
April 18, 1948
Prepared   by  members  of the Agricultural  Staff of  Purdue  University
Outlook Favorable for Hog Producers
WITH smaller total
meat supplies in
prospect for the summer
than were available last
summer and with a relatively strong demand,
hog prices are expected to
average well above the
late February and early
March levels for the period
April 15 to October 1.
Recently there has been
a tendency to reduce ail
classes of livestock in the
United States relative to
probable grain production.
This would seem to justify
maintaining the number of
sows for fall farrowing on
Indiana farms at normal
levels. Feeding ratios are
likely to be favorable in
the latter half of  1948  if
average or better than  average crop yields are
prospect or obtained.
In judging the future hog price situation in times
like these, it is important to appraise not only future
pork and meat supplies, but also the prospective demand. The amount of money the public will spend
for meat depends largely upon consumers' incomes.
At the present time, prospective supplies can be estimated fairly well. The most unpredictable factor is
the demand.
Demand Expected to Continue Strong
The drop in the United States farm price of $5.10
for hogs, 69 cents for wheat, 54 cents for corn, and
$1.14 for soybeans from January 15 to February 15
has raised the question, "Is this the beginning of the
much predicted post-war price realignment or is it
simply a corrective price adjustment in the grain and
livestock fields resulting from an over-extended market price rise growing out of the 1947 domestic and
world grain shortage?"
By
J. CARROLL BOTTUM, Agricultural Economics
in
The normal seasonal decline at this time in retail
store sales, employment,
and the like, makes it difficult to determine whether
anything more than the
seasonal adjustments are
taking place. The lag in the
time that it takes to collect
and make available data,
allows for real changes to
take place before they
show up in the trends.
Therefore, one cannot too
definitely appraise the
present situation in the
light of current data available.
Nevertheless, what data
are available would indicate that while an increased degree of caution
and conservatism has been
thrown into the entire economy, there are no definite
evidences that the price declines in the grain and
livestock fields have spread to the industrial phase
of the  economy.
Industrial production in general continued at the
peacetime record of the previous two months in January, or 193 per cent of the 1935-39 level. Employment was off seasonally in January and February,
but still averaged higher than for the same period a
year  earlier.
Retail store sales in both January and February
were below the December levels, but still above the
previous year's levels in dollar sales. Quantity of
sales in many cases had declined below the previous
year's levels. Average weekly income payments of
all industrial workers in February were nearly the
same  as January.
Barring more aggressive action on the international front, the three most important factors affecting
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