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Show fl)iJvestoclc! P-nmiinm " ' i Los Angeles Union Stock Yards, December 5 Reports from the western states as regards the cattle cat-tle feeding situation indicate that there will be a sizable reduction in the number of cattle fed this season. Here in Los Angeles county, the number of cattle in feed lets at the end of November, 1938, was set at 15,474, which is only 56 per cent of the 27,701 head that were in feed, lots here during, the latter part of November, 1937. Estimates place the numiber of cattle cat-tle in the Imperial valley at about 40,000, which is below normal. All through the state, we are advised there are fewer cattle on feed than last year. Arizona also- shows a substantial decrease in the number of cattle on feed. Feed prices generally are the lowest in the past several years. The spread in price between feeder anil fat cattle of recent months hasa been very narrow. In fact, in relation to the level of cattle prices, it has been about the narrowest nar-rowest cn record. Notwithstanding Notwithstand-ing this, the corn belt feeder has set the market in the southwest for stockers and feeders, buying them at a price wjhich our western feeders are reluctant to pay. The latter cannot see in the present price level of fat cattle a chance for reasonable margin over cost of the stockers and feeders. Corn belt feeders must have livestock in some form to move their crops. Even at the present price of fat cattle, they figure they will get more out of their corn by feeding at home rather than selling the corn on the present market. This situation has been responsible for the continued purchase of feeder cattle at levels little lower than fat cattle prices. Southern California has had practically no moisture so far this year. Other sections of the state are spotted. In the central and northern part of the state where there has been considerable rain, the grass is started sufficiently to encourage ranchers to stock up. As soon as we begin to get the usual rainfall there will be an increased in-creased demand for stockers and feeders. After all, California and ether southwestern states are not much different from the corn belt in the marketing of our grain and fcrrage through livestock. At the present time there is a good demand de-mand for stockers and feeders from these sections that have feed that can be marketed to best advantage ad-vantage only through livestock. As somewhat affecting the situation generally, it is well to keep in mind that hog prices are now down to a point where pork products are going to enter more extensively in competition with j beef and lamb, and it logically I follows hat a shortage of cattle , will be offset by increased pork supplies. The situation is somewhat confused con-fused as to the future trend of price levels but feeders are holding back supplies in anticipation of an increased price. Bow-ever, a great deal depends upon the movement of cattle from middle western feed lots to market. Furthermore, we have a readjustment of duties on Canadian and other favored nations na-tions which may have a material effect upon our price structure. It seems logical that the rafledted shortage of cattle on feed forecasts fore-casts a general strengthening up of price levels on fat stuff. |