Cheyenne record., 1918-11-28

The entire marketing situation Il:
SO changed since the September JONI
conference as 10 necessitate an entire
alteration in the plans Of price stabs-
lizatlon. The current peace. talk has
alarmed the holders of corn, and there
has been price decline of from ~
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 nraila'
Bile to the European market has ere
ated a great deal of apprehension on
the part of corn holders. This decline
has spread fear among swine growers
that Il similar reduction in the prices
of hogs would naturally follow. More
over, the lower range of corn prices
would, If Incorporated II 4 13-to-l ra-
Ito, obviously result in continuously
falling price for live hogs. In view
of these changed conditions many
swine producers anticipated lower
prices and as result rushed their
hogs to market In large numbers, and
this overshipmcnt has added to and
aggravated the decline.
The information of tic Department
of Agriculture indicates that the sup
ply of hogs has Increased about per
cent, while the highest unofficial esti-
mate does not exceed 10 per cent. in
creased production over last year On
the other hand, the arrival of hogs
during the last three weeks In the
Cevcn great markets has been 27 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 in aH enacavor
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-
ference and undertaken by the pack
ers. Another factor contributing to
the break in prices during the month
has been the influenza epidemic; 1t
has sharply curtn;lcd consumption of
pork products and temporarily de-
creased the labor staff of the packers
about % Per cent.
The exports of 13O,0OOOOO pounds
nrtnlar
pared with about 52,CO0,O0O pounds
In October a year ago, and the
export orders p!aceable by the Food
Administration for November, amount
to l7O,OOO0O0 pounds as contrast
ed with the lesser exports or
oS, 900 900 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-
port demands appears to be amply
sufficient to tax" up the increase in
hug proluc,i ~, but unfnvorable mar
ket conditions rNiSting in October nf-
ford no far index of the aggregate
supply and demand.
! 1t must be evident thnt the enor'
nous shortage In fats In the Contra
Empires and neutral countries would
Immediately upon peace result IN hd
ditional demands for pork products
which, on top of the heavy shipments
to the Allies, would tend materially
! TO increase the American exports In
ssmuch as no considerable reservoir OF
| supplies exists outside of the United
| States. 1t seems probable that the
prcscn, prospective supplies would he
| tnadcuuate to meet this world demand
with the return TO peace. SO fnr rs II
/ Is posslblc to interpret this fact. II APP
pears that there should he even u
stronger demand for pork products
| pfter the war, and therefore any alarm
! of hog producers ns to the effect oi
peace is unwarranted by The outlook
| In the light of these circumstances
II Is the conclusion oc the conference
| that attempts to hold tl,S price Of hogs
| to the price of corn may work ont &c
the disadvantage of pork producers
1t Is the conclusion tina, any interprr
, tRtion OF the formula should be Il
broad sauGcd policy applied over a
long period. II is rhe opinion OF ths
conference that In substitution of the
previous plans Of stabilizntion the
Live Stock Subcommittee Of the Agri
cultural Advisory I:nard. together with
the specially invited swine representa-
tives, should accept the invitation oi
the Food Administration to Join with
the Administration ard the packers W
determining the prices nt which con
trolied export orders nre to he placed
This will he rcguiarly done. The in
Huence Of these orders will be directed
TO the maintenance OF the common oh
Icct-namely. the stab'iizatlon OF the
price Of live hogs 50 rs to secure us far
II Is possible fair returns to 'he