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Show mp& -'uv In considering the value realized by the cattle producer for his product it i reasonable to consider the purchasing power represented by the cattle or in ' other words, how much of different staple commodities will the sale of a given number of cattle permit the producer to purchase. Taking the Chicago livestock market mar-ket as a basis recent figures show that it has only been in the past few months that cattle values have gone above 100 per cent of the pre-war purchasing power of cattle, this be-iiiff be-iiiff the first time since the beginning of 1919. Prior to 1W19 this purchasing purchas-ing power only once before reached this percentage since 1910 and that was during the period of 1912 to 1916. The purchasing power of cattle reach- ed its lowest ebb (about 62 percent oi' v..e ..e war value) when it struck bottom in the fall of 1921. Since tiuit time a sustained rise in values I has been recognized, if we eliminate ! the .-casonal decline occuring toward ' the er.i o: Vj-2, 1923 and 1924. There appears to be no question ! but that cattle price levels travel in cycles in much the same manner as other staple commodities. Opinions have differed to some extent as to the i length of the swing in cattle cycles. : Many authorities state that from six to eight years is a fair period for the cycle to perform its revolution from the top to the bottom and others have placed the period as high as sixteen years from the time we have a supply of cattle below the demand with accompanying ac-companying higher price levels to the time when production through the stimulus created by these price levels, reaches its peak and the price level line on its downward movement cross-e cross-e sthe cattle production line as it climbs. There is no question but the quicker quick-er turnover in the cattle industry through the utilization of younger animals has a direct effect in shortening shorten-ing these cycyes. We may be entering a period somewhat some-what similar to that experienced in 1912 when an upward trend followed a period similar to that which we have just passed through. At that time prices reached their peak in 1915 but, of course, the war situation was to be reckoned with. However, the same situation is recorded in 1896 when a similar era was passed throueh and prices reached their peak in 1899. If this movement is to be repeated . the contention of market observers ; would seem to be well founded that j steady and even stronger prices for i cattle might be expected and the peak would be reached, if it worked according accord-ing to Hoyle, around 1930, or 1931, with the beginning of a downward , swing presenting itself at that time. However, the quicker turnover resulting re-sulting from the constantly increasing increas-ing consumer demand for younger animals is very likely to upset these figure sto some extent and if it does it is likely that the peak will be reached earlier than past cycles would indicate. When it is considered that in 1912 the bulk of the choice cattle for which there was the broadest outlet out-let consisted of three year olds and during the present year a substantial percentage of the beef range in age from fifteen to eighteen months, thereby doubling the time required for a complete turnover from the range to the feed lot and ultimatly to the consumer. It is a fact that feeder cattle from the ranges have again come into their own and prices being paid many times hrinf them into competition with the demands of packers. This is a heal-' heal-' by condition, of course, for the range producing sections and one which should not seriously handicap the feeders if beef price levels may be maintained. From an economical standpoint this -itvntion in the feeder classes is healthful as from 1919 to 1925 feed buyers were not an important factor on the market due to their inability to carry on operations to any extent during the liquidation and deflation period and accompanying inability to finance. However, present curtailed supplies and healthy demands due to general good conditions throughout the country resulting in highly satisfactory satis-factory price levels have again created creat-ed confidence in feed lot operations which has again put the feeder buyer on the market with a resultant valuable valu-able outlet to the range producer. |