Show BUSINESS end and the STOCK MARKET by BABSON'S REPORTS INC ht 1971 CROP AND LIVESTOCK OUTLOOK Our latest Babson survey of nationwide nationwide nation nation- wide prospects generally confirms August August Au Au- gust official estimates of a 26 per cent increase in grain feed-grain output However spread d of the corn blight and the possibility pos pos- possibility of frost damage to this and other late crops croS in the critical growing period ahead could hold total outturn well below the forecast Corn And Soybeans Even if the projected record corn production production production pro pro- of 53 billion bushels is not attained attained attained at at- we could have a bumper crop matching or exceeding the 1967 top of 48 billion bushels Most observers observers observers vers feel this surplus output stems from the governments government's new corn set aside program aimed to make producers less dependent on Uncle Sam We look for more price weakness than strength over the near term sharper dips later And Anda a a big boost in livestock output next winter Still strong demand for oilseed meal at home and abroad suggests that this years year's anticipated million bushel in increase in crease in soybean output to a total of 12 million bushels wont won't be unduly burdensome burdensome burden burden- some since stocks will be pretty well whittled down by start of the new marketing marketing marketing mar mar- year However we expect prices to be on the defensive from harvest time on and following corn trends pretty closely Wheat Prospects The prospective record U. U S S. S 1971 wheat output of 16 million bushels has basically basically basically basic basic- ally bearish connotations However production of winter wheat is expected 1 to lag year-ago year levels slightly and supplies supplies supplies sup sup- plies of this category owning to the smaller carryover will be appreciably below 71 1970 levels Stocks next July 1 will be up sizably Sharp increases in wheat output in Canada and Western Europe are arc forecast forecast forecast fore fore- cast and some betterment over the poor showings made in Australia and Argentina Argentina Argen Argen- tina last year is anticipated If these expectations expectations ex are realized U. U S S. S exports in inthe inthe inthe the 72 1971 season will sill lage year earlier totals by a substantial margin Accordingly Accordingly Accord Accord- we look for wheat prices to lag those of last season on average Cattle and Hogs Reports from the 23 major feeding states at midyear indicated that cattle and calves on feed there numbered two per cent more mo than a year ago If feeders in these same states adhere to early intentions to step up in the current September July-September quarter as seems so far to be the case needs should be met without difficulty This will continue to put prices under pressure and further weakness lies ahead Rut nut for the most part cattle quotes will sill hold above last years year's levels and producers will fare better than hog breeders and feeders Looks like the national national na na- na pig crop for 71 would come within five per cent of 1023 million out turn Hence will continue burdensomely large for at least another 60 days perhaps longer However we think the price bottom has been seen for this cycle and expect somewhat higher averages next month and more firmness thereafter Poultry And Eggs Poultry consumption has had trouble holding its own over o. the thc past several months partly because supplies of corn com pork were large and moderately priced While this had led to some cutbacks cut backs in the production of broilers com corn compared pared with a year ago on the whole supplies have been and continue to be bein in excess of requirements Cold stor age holdings of turkeys recently were far above year ago levels Some price |