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Show iLivestpclc A feature which has caused considerable con-siderable comment in the past several months has been the lowering tendency ten-dency of hog price levels lower thru-out thru-out the year, the decline being noted until near the close of the year when prices struck more or less of a steady l keel. In some quarters this has been attributed at-tributed to possible increased pork supplies but receipts at the principal markets do not bear this out. The supply for the year was virtually steady with the preceding year but the weakness of the market cropped up in the demand and it is thought that an important factor in this weakening weak-ening was due to decreased exoprts of pork and pork products. A decrease de-crease of around 30 per cent is recorded rec-orded in exports for the year along with a 5 per cent decrease in lard exports. ex-ports. This is accounted for to a large extend by increased hog production pro-duction in European producing sections, sec-tions, with a heavy increase in European Euro-pean hog slaughter in the face of substantial decreases in the number of cattle and sheep slaughtered. During 1927 the volume of pork in cold storage was heavier throughout through-out the year than during 1926 and, no doubt, served to diminish buying power. One way of accounting for these heavier stocks of pork was the anticipated hog shortage which seemed seem-ed imminent in 1926, resulting in the laying of larger supplies than normal to cover what was thought might be a period of short supplies during 1927. Although stocks of pork in storage at the beginning of the present year are heavier than a year ago, and the decreased export demand continues to prevail, it is evident that hog prices have reached a level in their downward down-ward movement which will probably be passed for at least several months to come, with the possible exception of local fluctuations which may occur oc-cur at the various markets. There is a strong undertone to the market and if there were any appreciable change in the near future conditions would indicate that the trend would be upward. This is, of course, justified justifi-ed to a large extent by three governing govern-ing factors, these being the presence of a supply of hogs in the country which does not exceed requirements, the strong position of the sheep market mar-ket and price levels being realized for beef cattle which everything indicates indi-cates will be maintained at least during dur-ing a good portion of the present year and perhaps longer. The Western hog producer is, of course, fortunately situated in this instance as production of hogs West of the Rocky Mountains does not at this time exceed 30 per cent of the Western requirements and in California Cali-fornia it is estimated that not over from 10 per cent to 15 per cent of local lo-cal demands are filled with production produc-tion from within the state. So long as this situation exists, of course, the Western producer will receive the benefit of the differential in prices in his favor at the Coast markets, mar-kets, presenting the shipping expense and risk involved in bringing in supplies sup-plies from distant points, and it is very likely that this differential will remain for some time to come as increased in-creased Western production is falling fall-ing short of keeping pace with increased in-creased consumer demand presented by the constant growth in population popula-tion at Pacific 1 Coast metropolitan consuming centers. |
