The Snowflake herald., 1918-11-22

The entire marketing situation has
so changed since the September joint
conference as to neceSSitate an entire
alteration in the plans Of price stabi-
lization. The current peace talk has
alarmed the holders of corn, and there
has been, a price decline OF from 20
cents to 40 cents per bushel. The fact
that the accumulations Of low priced
corn in the Argentine and South Afri-
ca would, upon the advent Of peace
and liberated shipping, become availa-
BILE to the European market has Gre
ated a great deal of apprehension on
the part of corn holders. This decline
has spread fear among swine growers
that a similar reduction in the prices
of hogs would naturally follow. More
over, the lower range of corn prices
would, If incorporated in 13-tO-1 ra-
ito, obviously result in a continuously
falling price for live hogs. In view
of these changed conditions many
swine producers anticipated lower
prices and as a result rushed their
this overshipment has added to and
aggravated the decline.
The information of the Department
of Agriculture indicates that the sup
ply Of hogs has increased about 8 per
cent, while the highest unofficial esti-
mate does not exceed Is per cent. in
creased production over last year. On
the other hand, the arrival of hogs
during the last three weeks in the
seven great markets has been n per
cent. more than last year, during the
corresponding period, demonstrating
the unusually heavy marketing of the
available supply. In the face of the
excessive receipts some packers have
not maintained the price agreed last
month. On the other hand, many
Of the packers have paid over the
price offered to them iu an endeavOr
to maintain the agreed price. The re-
suit in any event has been failure
TO maintain the October price basis
determined upon at the September con-
terence and undertaken by the pack
ers. Another factor contributing to
the break in prices during che month
has been the influenza epidemic; 1t
has sharply curtailed consumption OF
pork products and temporarily de-
creased the labor staff of the packers
about % per cent.
The exports of 13O,O00,OOO pounds
of pork products for October COM
pared with about 100000 pounds
In October year ago, ana the
export orders placeable by the Food
Administration for November, amount
to 17O,OOOOOO pounds as contrast
ed with the lesser exports OF
oS 600 900 for November, 1917. The
increased demands of the allies are
continuing, and are In themselves
proof of the necessity for the large
production for which the Food Admin
istration asked. The increase in ex-
mort demands appears to be amply
sufficient to take up the increase III
hog producti III, but unfavorable mar
bot conditions existing in October af-
ford no fair index Of the aggregate
supply and demand.
II must be evident that the ehor-
mons shortage in fats In the Cehtral
E,,,niros and neutral countries Woulu
Immediately upon peace result In ad-
ditional demands for pork products
which. on top Of the heavy shipments
to the Allies, would tend materially
+o increase the American exports, IN
osmuch as no considerable reservoir Oh
~rnnlies exists outside Of the United
states It seems probable that the
present prospective supplies would De
tnodoouate to meet this world demand
with the return to peace. So far as 1t
@ nossible to interpret this fact II ap-
nears that there should be even
stronger demand for pork prouucts
ofter the war. and therefore any alarm
of hog producers as to the erect OF
rooce Is unwarranted by the outlook.
In the light of these circumstances
II is the conclusion of the conference
that attempts 10 nolu the pil0o "a NO"
TO the price of corn may work out TO
the disadvantage of pork producers
It Is the conclusion that any lnterpre-
tation of the formula shouha De a
broad gauged policy applied over a
long period. 1t is the opinion OF the
conference that In substitution OF the
previous plans of stablIlzatlon the
live Stock subcommittee of the Agrl-
cultural Advisory Board, together with
the specially invited swine representa-.
lives should accept the invitation OF
the Food Administration TO JOIN win
the Administration and the packers in
determining the prices at whlcn con
trolled export orders are to De placeu.
This will be regularly done. Inc IN
! 1uence of these orders will be dlrecteu
70 the maintenance of the common oO-