OCR Text |
Show Cattle Prices May Remain High Because Of Smaller Marketings Small marketings and continued good consumer demand are expected expect-ed to maintain the high prices of well-finished slaughter cattle this fall, says Dr. W. E. Carroll, Animal Husbandman of the U.S.A.C. Dr. Carroll cited factors set forth in the August beef cattle situation report of the Bureau of Agricultural Economics, of the U. S. Department of Agriculture. A 29 percent smaller number of cattle cat-tle on feed in the Corn Belt States this August 1 compared with last was reported. For the longer term, he said, prices of grain-fed cattle are likely like-ly to decline more than seasonally next winter and spring on increased increas-ed marketings, but that prices of the lower grades of slaughter cattle cat-tle are expected to continue relatively rela-tively high. Some seasonal advance in prices of the lower grades during dur-ing the first half of 1938 "is not unlikely." t;-i,, The report indicated "a fairly strong demand is likely to develop for feeder cattle" this fall in view of the large production of corn and other feed grains and the relatively relative-ly small number of hogs to be marketed during the remainder of this year. Such a demand will ease, and perhaps prevent entire y a seasonal decline in prices of the lower grades of slaughter cattle Carroll said "it is probable that slaughter supplies of cattle will be smaller i" the last half of 1937 and first half of 1938 than a year earlier. The short supplies LSIgh price- ftyf'aJSSSI-resulting ftyf'aJSSSI-resulting from the 1936 drougm, forced the liquidation of many cattle cat-tle which otherwise would have been retained on farms. "In view of the favorable feed crop prospects, and the high prices of finished cattle", he pointed out, "it is likely that the number of cattle that will be fed during the coming season will be much larger than was the case last winter." The Buerau's report stated that cattle feeding operations in 1936-37 1936-37 were generally profitable. Stacker and feeder cattle will cost feeders more money this fall, but feeding costs are likely to be less than they were last fall. The conclusion con-clusion is presented that "returns from cattle feeding in the coming season, therefore, may be somewhat some-what less profitable than, last winter win-ter and spring, but losses from feeding operations are not likely to be sustained by experienced feeders." It is believed that the consumer demand for meat is likely to remain re-main relatively stable through the remainder of 1937 at least. With continued small slaughter supplies of hogs in prospect for the next year or longer, consumer demand for beef is expected to continue high in relation to the demand for other meats. |