Economic and Marketing Information for Indiana Farmers (Sep. 15, 1952) |
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Economic and Marketing INFORMATION FOR INDIANA FARMERS Lafayette, Indiana September 15, 1952 Prepared by members of the Agricultural Staff of Purdue University little feeding Outlook for 1952-53 by M. PAUL MITCHELL, Agricultural Economics CATTLE FEEDING in the year ahead can be expected to show more chances for profit than during the past year, but returns will be well below the average of the other post war years. Although continued strong demand conditions are expected, the prospective increased supply of all slaughter cattle in the year ahead will cause prices to average at least 10 percent less than the average of the year ending October 1, 1952. This is subject to uncertain seasonal patterns. A much larger potential supply of feeder cattle for the fall months and greater buying caution by cattle feeders have caused prices on these cattle to drop well below record levels of a year earlier. Further price declines are not unlikely, so feeders' profit margins should be much better than a year ago. The heavy movement of feeder cattle, which started earlier than usual this year, is expected to continue during the fall and early winter months. Feed grain production in general is large enough to make costs of gain in the feed lot comparable to last year or slightly higher. Increased production of cattle throughout the nation and poor feed conditions in much of the cattle country are the principal factors contributing to lower feeder cattle prices this year than last. Weather conditions during September and October will determine to a large extent the number of cattle that will move e'ther to slaughter or to feed lots. However, as of late August, it appears that the runs will be large enough to depress prices still further. During the late summer months, stocker and feeder prices have averted more than $6.00 per ewt. or 20 percent below a year earlier on the principal feeder markets. Early c°ntract purchasing in the range country has been small in volume and at prices from $6.00 to $10.00 less than the record levels of a year earlier. Cyclical Increase Cattle numbers in the U. S. have increased about 15 million head since 1948, a new record. However, this may not be as significant as it first appears, because of substantial reductions in other roughage- consuming livestock, chiefly horses and sheep. With feed supplies limited this year, there is likely to be some liquidation of stock cattle from many areas in addition to the natural increase from larger cow herds. The increase in cattle numbers has not been confined to the western range states. New cattle producing areas of the South as well as more beef cattle in the Corn Belt will add to the potential supply of feeder cattle this fall. Drouth Cuts Feed Supplies Western cattle producing areas have experienced a year of relatively short feed supplies. Ranges have been stocked to capacity since early spring. During the summer months, all of the range states east of the Rockies have reported below average feed conditions. Several states have had the lowest pasture conditions since the drouth years of 1934 and 1936. Increased cattle numbers and a rather severe winter reduced feed reserves in many areas last year. Needed feed reserves have not been rebuilt under the weather conditions of the current summer. The South has fared even worse, with extreme drouth conditions prevailing during much of the summer. For these reasons, the upswing in the cattle cycle may be slowed down or halted until more adequate feed supplies are available. In adjusting to this situation, substantially larger numbers of thin cattle
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Sep. 15, 1952) |
Purdue Identification Number | UA14-13-econ195209 |
Date of Original | 1952 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 02/27/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ195209.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Sep. 15, 1952) |
Purdue Identification Number | UA14-13-econ195209 |
Transcript | Economic and Marketing INFORMATION FOR INDIANA FARMERS Lafayette, Indiana September 15, 1952 Prepared by members of the Agricultural Staff of Purdue University little feeding Outlook for 1952-53 by M. PAUL MITCHELL, Agricultural Economics CATTLE FEEDING in the year ahead can be expected to show more chances for profit than during the past year, but returns will be well below the average of the other post war years. Although continued strong demand conditions are expected, the prospective increased supply of all slaughter cattle in the year ahead will cause prices to average at least 10 percent less than the average of the year ending October 1, 1952. This is subject to uncertain seasonal patterns. A much larger potential supply of feeder cattle for the fall months and greater buying caution by cattle feeders have caused prices on these cattle to drop well below record levels of a year earlier. Further price declines are not unlikely, so feeders' profit margins should be much better than a year ago. The heavy movement of feeder cattle, which started earlier than usual this year, is expected to continue during the fall and early winter months. Feed grain production in general is large enough to make costs of gain in the feed lot comparable to last year or slightly higher. Increased production of cattle throughout the nation and poor feed conditions in much of the cattle country are the principal factors contributing to lower feeder cattle prices this year than last. Weather conditions during September and October will determine to a large extent the number of cattle that will move e'ther to slaughter or to feed lots. However, as of late August, it appears that the runs will be large enough to depress prices still further. During the late summer months, stocker and feeder prices have averted more than $6.00 per ewt. or 20 percent below a year earlier on the principal feeder markets. Early c°ntract purchasing in the range country has been small in volume and at prices from $6.00 to $10.00 less than the record levels of a year earlier. Cyclical Increase Cattle numbers in the U. S. have increased about 15 million head since 1948, a new record. However, this may not be as significant as it first appears, because of substantial reductions in other roughage- consuming livestock, chiefly horses and sheep. With feed supplies limited this year, there is likely to be some liquidation of stock cattle from many areas in addition to the natural increase from larger cow herds. The increase in cattle numbers has not been confined to the western range states. New cattle producing areas of the South as well as more beef cattle in the Corn Belt will add to the potential supply of feeder cattle this fall. Drouth Cuts Feed Supplies Western cattle producing areas have experienced a year of relatively short feed supplies. Ranges have been stocked to capacity since early spring. During the summer months, all of the range states east of the Rockies have reported below average feed conditions. Several states have had the lowest pasture conditions since the drouth years of 1934 and 1936. Increased cattle numbers and a rather severe winter reduced feed reserves in many areas last year. Needed feed reserves have not been rebuilt under the weather conditions of the current summer. The South has fared even worse, with extreme drouth conditions prevailing during much of the summer. For these reasons, the upswing in the cattle cycle may be slowed down or halted until more adequate feed supplies are available. In adjusting to this situation, substantially larger numbers of thin cattle |
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