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Show frS . r Los Angeles, August 27, 1934 The rank and file of livestock producers pro-ducers have the most hopeful outlook for an improved price structure than has been the case in a long time. Drouth conditions at the moment are intensly serious and it is a question whether or not some producers will be able to pull through with sufficient suffi-cient foundation stock to -take advantage ad-vantage of the better price levels. However, on the Pacific coast, if weather conditions during the coming com-ing season are favorable, it seems very probably that this secton will enjoy a degree of prosperity. All livestock supplies . in 1935 will be greatly reduced from the numbers on hand during the past several years. Already, the hog market mar-ket has reflected the greatly reduced number available and prices have made rapid advances to the best levels lev-els since 1931. While this price structure may be subject to some revision, there is a general opinion in the trade that we will see no great increase in market supplies, as usually usu-ally may be expected in the fall, due to decreased farrowing last spring and shortage of feeds and relatively high prices. The federal government has purchased pur-chased more than three and a half million cattle in its drouth relief program pro-gram and apparently millions more will be purchased. In North Dakota, practically 50 of all the cattle in the state have gone to federal buyers. buy-ers. There is talk that the government govern-ment buying may eventually take ten million and possibly fourteen million cattle; this number running to a great extent to breeding stock. Heavy forced marketing of cattle is generally anticipated until January 1st, with estimates that the government govern-ment will buy a million or more a month for the balance of this year. This program is going to either force midcile western feeders to pay higher high-er prices or else greatly curtail their feeding operations. In either event, the only answer must be reduced j supplies, not only in 1935, but for, some years to come. The long time outlook certainly is for a higher price scale. j ) Much the same situation exists on sheep and lambs. Government buying buy-ing that is now getting underway is expected to call for approximately five million ewes, which certainly 'will cut down production in 1935. Government planning is to be anticipated an-ticipated and it is doubtful if the present administration will permit any great increase in production of foods, at least to a point considered beyond what consumers will and. can take at ..fair prices,. For those who are in position to grasp advantage the present situation seems to offer an ideal time to become established in the livestock business, whether for beef cattle, swine or lamb production. |