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Show jSituatioiiJ rj : C EAT MORE OR PRODUCE LESS. The depressed condition of the wool market is undoubtedly the most bearish bear-ish factor in the recent drastic decline de-cline in fat lamb values. Pacific Coast packers are said to be getting only 80 to 90 cents for pelts from winter-fed lamb3. This compares with $2.50 and i better at the same time a year ago. Thus the carcass must carry almost the entire burden, otherwise the meat price must come down commensurate with the reduced value of the byproducts. by-products. There is considerable interest being manifested just now as to what is going to happen to the lamb market when the milk lambs begin to move. Will the new crop of spring lambs have a tendency to increase or decrease de-crease the price of fed lambs That is, of course, a very difficult question to answer, but the result will depend a great deal upon the total supply. J In the usual course, the new crop may start off anywhere from $13.00 to $15.00 per cwt. the market. The owners of fed lambs are apparently crowding their product on the market in the belief that prices will not be strengthened, notwithstanding the higher price level of the milk lambs. It is well to remember, however, that there are now a lot of unfinished lambs coming to market which does not do the market nor the owner any good. Many believe that feature is also having to do with the recent big Eastern drop in lamb prices. Anyhow, marketing and slaughter of immature lambs decreases the supply and that's all to be said in favor of the policy.! Some are willing to concede that the l'ghter weight fed lambs stand a chance of benefiting by the increased prices paid for the milkers and possibly pos-sibly reflecting some help to the heavier heav-ier kind. Spring lambs coming on to the market about Easter time command a top price for it is becoming a national nation-al custom to grace the closing of the Lenten season with the delicate, tender ten-der and nutritious meat of lambs taken tak-en directly from the mother's milk. Thus far, the western markets have not reacted fully to eastern price declines. de-clines. A continuation of this condition condi-tion depends upon the law cf supply and demand. A rather important decision has just been made by the United States Department De-partment of Agriculture to the effect that the Surety Bond required of all commission firms doing busin;ss at the central markets and the other restrictions placed upon the handling of proceeds of live stock sales to safe- guard the onwers, apply only on shipments handled through central markets and do not, as some had thought, cover slr'pmjnts handled otherwise than through the market. This decision mvst require some thought as to where the owner stands in handling his livestock through outside out-side agencies. It is easy to appreciate that the Federal Government cannot be expected to extend its trading arm here, there and everywhere, as it would, to say the least, be extremely ilifficult, to say nothing at the expense, ex-pense, to try to supervise the trading under such conditions. 1 |
