The Denison review. [volume] (Denison, Iowa) 1867-current, 1918-11-06
sTAsILlzATIoN OF HOG PRICES

STAsiLIzATIoN OF HOG PRICES
The following statement is trans
nAltted by the food administration at
request OF conference.
The conference between the live
stock subcommittee of the agricultur.
III advisory board, including special
members Of swine industry and of the
food administration, held on October
2Sd to 25th, has. after consideration
Of the present situation of the pork
and hog market, reached the follow
ing conclusions:
The entire marketing situation has
80 changed since the September joint
conference as to necessitate an entire
alteration in the plans of price stabili-
1ation The current peace talk has
alarmed the holders of corn and there
4 has been price decline Of from TWEEN
tysdve cents to forty cents per BUSH
Ell. The fact that the accumulations
"a Of low priced corn in the Argentine
and South Africa would, upon the adj
vent OF peace and liberated shipping,
become available to the European
prehensiOn on the part OF corn hold
ers. The decline has spread fear
among swine growers that a similar
L reduction in the prices of hogs would
naturally follow. Moreover, the low
err range of corn prices would, If in
s3corporated In a thirteen to one ratio,
! obviously result in continuously
falling price for live hogs. In view
Of these changed conditions many
swine producers anticipated lower
prices, and, as a result, rushed their
hogs to market in large numbers and
this oyershipment has added to and
aggravated the decline.
The information of the department
Of agriculture states that the supply
0E hogs has increased about eight per
cent, while the highest unofficial esti-
mate does not exceed fifteen per cent
increased production over last year.
On the other hand the arrival of
hogs during the last three weeks in
the seven great markets has been
4 twenty-seyen per cent more than last
year, during the corresponding period.
Demonstrating the unequally 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
4 packers have paid over the price Of
Tered to them in an endeavor to main
tain the agreed price. The result in
any event has been a failure to main
tain the October price basis deter
mined upon in the September confer.
q ence and undertaken by the packers.
Another factor contributing to the
break In prices during the month has
been 1.-THE Influenza epidemic. It has
sharply curtailed consumption of pork
products and temporarily decreased
the labor staff of the packers about
twenty-five per cent.
The exports of one hundred thirty
million pounds Of pork products for
October compared with about fifty
two million pounds in October of last
year. and the export orders placeable
Il ~ the food administration for Novem.
ber, amount to one hundred seventy
4 million, contrast with the lesser ex'
ports Of ninety-eight million for No
/ vember 1917. The increased demands
OF the allies are continuing and are OF
themselves proof Of the necessity for
I the large production for which the
food administration asked. The in.
crease In export demands appears to
I be amply sufficient to take up the in
crease in hog production but unfavor'
able market conditions existing in Oc
tober afford no fair index Of the aggre
gate supply and demand.
It must be evident that the enor'
nous shortage in fats in the central
I empires and neutral countries would
4 Immediately, upon peace, result in ad
StditiOnal demands for pork products
which, Son top of the heavy shipment
10 the allies would tend materially to
increase the American exports, mas
uuch as no considerable reservoir OF
spplies exists outside of the United
u ates. 1t seems probable that the
esent prospective supplies would be
! inadequate to meet this world demand
! with the return to peace. So far as II
q Is possible to interpret this fact, 1t ap
pears that there should be even a
stronger demand for pork products af
ter the war, and therefore any alarm
Of hog producers as to the effect OF
,eace Is unwarranted by the outlook
n the light of these circumstances, !,
the conclusion of the conference
at attempts to hold the price OF hogs
the price of corn may work out to
disadvantage of the pork produc'
1t is the conclusion that amy in
,retation of the formula should be
road gagged policy supplied over
ng period. 1t is the opinion OF
conference that in substitution OF
PREVIOUS plans of sterilization the
.ock subcommittee of the agricul-
advisory board, together with the
lily invited swine representa-.
should accept the invitation OF
,od administration to join with
ministration and the packers in
lining the prices at which con-
exports are to be placed. This
regularly done. The influence
orders will be directed to the
ance of the common object
the sterilization of the price
ogs so as to secure as far as
sible fair returns to the pro-
nd the insurance OF an ade-