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Show The Livestock Situation Los Angeles, November 2, 1937 Declines that have taken place in livestock markets were not unexpected, unex-pected, yet the severity of the break in hog prices was far greater than members of the livestock trade anticipated. an-ticipated. From an extreme top of $14.15 a cwt. on the Los Angeles Market August 9th, the market declined de-clined gradually until the extreme top early in October was $12.00. The most severe drop in years came during dur-ing the last ten days, the decline carrying the top below the $10.00 level for the first time this year. Statistically, the hog market does not seem to warrant such a drastic decline, for supplies of hogs reported report-ed at the leading markets are far below normal. There are many who believe that after such a spectacular decline, some definite upward reaction reac-tion seems probable. As it is, about the most economical meat food available to the public at this time is pork. It seems certain that if the normal laws of supply and demand de-mand are permitted to function, that some recovery in hog prices may be anticipated. As this writer pointed out several months ago, extremely high prices for a few loads of prime cattle were bound to attract widespread newspaper news-paper publicity to the detriment of the whole livestock structure. Many trade observers believe that unfavorable unfav-orable publicity attracted by n few high cattle sales at Chicago is the primary factor back of the present unsettled condition of the markets. Fundamentally and statistically, the livestock markets appear in rather strong position, although of course, the livestock price structure must always depend to n great extent upon up-on business and Industrial conditions condi-tions generally and the buying power pow-er of the consumer. Middle western demand for feeder feed-er cattle is somewhat unsettled due to delay on the part of the Federal government in making clear Its agricultural agri-cultural policy, particularly in regard re-gard to corn loans. Here on the west coast, there is a healthy demand for replacement cattle, a factor which adds much to the firmness of the present cattle market. About 25 per cent of the cattle and calves now being marketed at the Los Angeles Union Stock Yards are being be-ing purchased to go into fecdlots and back on ranges and pastures. , n . |