Economic and Marketing INFORMATION 
FOR
INDIANA
FARMERS
Lafayette,   Indiana
June  27,   1952
Prepared by members of the Agricultural Staff of Purdue University
The Road Ahead for Cattle Feeders
By
M.  PAUL MITCHELL, Agricultural Economics
FED CATTLE prices are expected to strengthen after mid-year as market receipts decline. Late summer
and early fall will likely
bring best prices for top
grade cattle, probably approaching last year's levels.
Demand conditions are
likely to remain at high
levels under the Defense
Program. A prospective increase in supply of market
cattle at the end of the
grazing season can be expected to depress both
slaughter and feeder cattle
prices.
The main factors affecting the cattle market during the remainder of 1952
are: a slight change in
number of cattle on feed, a changed feed situation,
expected strong demand conditions, cyclical changes
in cattle numbers and  price controls.
Little Change in Cattle on Feed
The April 1 government report of cattle on
feed showed only a 3 percent increase in the number
as compared with a year earlier. There were some
changes in location of cattle on feed, however. The
Eastern Corn Belt states reported a 9 percent increase
while the Western Corn Belt showed no change from
a year earlier. There were no significant changes
indicated either in expected time of marketing or in
fhe class of cattle on feed. There was a slight increase in the length of time cattle had been on feed
as compared with a year earlier, and also slightly few-
er calves in the supply for future markets.
Feeder cattle prices last fall were so low that under
price controls for slaughter cattle only very small price
Margins were in prospect, if any at all. Cattle feed-
|n9 under these conditions has required emphasis on
low cost gains. More dependence on grass with less
9rain feeding during the summer will delay the mar
keting schedule of fed cattle after mid-year.
Feed Grains Limited
Government estimates
indicated a reduced supply
of corn on cattle feeders'
farms as compared with a
year earlier. This was especially true in Western
Corn Belt states where the
1951 corn crop was not
only relatively small, but
so badly frost damaged
that feeding before warm
weather was imperative.
The soft corn situation in
that area has been largely
responsible for the heavy
marketings and seasonally
depressed prices of fed cattle during recent weeks.
Relatively large numbers of grain consuming livestock, particularly hogs, have been responsible for a
material reduction in the reserve supply of corn during the past two years. Fairly tight grain supply
conditions are expected to continue during the summer of 1952. Indiana is less affected than most Corn
Belt states because of a relatively good corn crop
in 1951.
Expected Strong Demand Conditions
The nation's economy is running in high gear. Full
employment at record high wages prevails and is
likely to continue through 1952. Although some reduction in buying on the part of consumers has been
reported during the first half of 1952, there has been
little evidence of this in the fed cattle market. No
slackening of demand is in prospect for beef, especially since less competition from pork is assured
for the last half of the current year.
Cyclical Changes In Cattle Numbers
It has been estimated that cattle numbers have increased by 12 million during the past four years. Half
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