Evening star., 1931-12-27
LIVE STOCK TRADE
SHARPLY Debated
Six Billion Dollar Industry
Feels Effect of Business
Depression.
BY FRANK E. MOORE.
Special Dispatch to The Star.

BY FRANK E. MOORE.
Special Dispatch to The Star.
CHICAGO, December 26-Live stock,
ton this year after escaping during the
greater part of 1880.
AS a consequence, one of the last
bulWarkS of farm income was badly bat
tered. Hogs during the closing months
of the year sold at the lowest prices of
the present century. Sheep brought
lower returns than at any time in 20
years and cattle. except in prime divi-
sions, were below the level at which
Profit is possible.
Pre-war prices of meat failed to at
tract public buying and unseasonably
warm weather throughout the year
added to the troubles of the marketer
Packers found profits extremely slim
and hard to realize, with inventory at
the end of each month valued at less
than at the close of the previous period.
The fundamental cause of the price
disaster was hard to locate, although
with live stock it seemed to be a case
primarily of demand shortage. Supplies
were by no means excessive, measured
fact, the cattle supply was the smallest
since 1915 and the run of hogs the
smallest since 1927. There was a gain
OF about 10000 in the supply of sheep
brought to market here. compared with
1880. but that was of little Importance
III meat pounds compared with the de-
crease in ether departments.
Concern Over Present Conditions.
Farmers who could count upon their
meat animals to provide them with an
income above expenses in the past 10
years of agricultural depression this year
found that source of cash largely lost,
although with 3O-cent corn it still was
possible to feed hogs at slight profit.
The condition of markets causes con-
Germ to packers, who fear that existing
prices may discourage feeding of meat
animals and result in severe shortage
during the next few years.
While the cattle market showed more
stability than either the hog or sheep
markets, conditions were far from sat
isfactory. Under normal conditions the
supply would have been considered
small, but demand was so weak and
uncertain that values declined rapidly.
January started out with best steers
selling at sl425. BY the first of June
cattle equally good sold at $3.50.
The first half Of the year cleaned out
about all of the feeders that we're
bought at comparatively high prices
during the Fall of 1880. These cattle,
when marketed, showed a distressing
loss over first cost plus feed.
After the low point late in May there
was some reaction and prices for good
steers gained during Summer and Fall
months. Buyers concentrated on the
good to choice cattle that were heavy
| enough to meet the Eastern shipping
demand. Grass-fed cattle and the low
grade steers that had received but a
taste of corn remained at the low Sum-
mer level during most of the year. They
comprised a large percentage of the re-
ceipts, so the advance on the limited
number of prime cattle failed to bring
up the average price materially.
Rangers Flowed Freely
Western range cattle flowed in freely
after the first of September and had a
depressing effect on bovine stock of
native origin that showed similar quail
ity. There were $4,000 rangers re-
ceived. Many were COWS and heifers
with liberal percentage of feeders.
The average price of beef cattle dur
ing the first II months of the year was
s805. or s285 less than in 1890 and
the lowest average since 1912. There
we're many depressing factors outside
the regular market that helped to dra G
values to this low level. Hides declined
to the lowest point in 40 years and
other by-products Of the packing houses
were low priced. Grease, talloW and
fertilizer materials all were at record
low levels.
The experience of cattle feeders
made buyers of stockers and feeders
extremely cautious during the Fall
months when most of the replacement
cattle went back to the country.
Despite the fact that feeder cattle were
at the lowest in over 20 years, de-
mand was not broad and buyers were
discriminating Statistics covering Is
primary markets for the first II months
of the year. show that the movement
of stockers and feeders back to the
country was IA per cent short of last
year and the lowest in many years
This may be reflected in higher prices
late in the Winter and next Spring
when a shortage of fat stock is certain
to develop if demand holds even to
present levels.
Calves Followed Steer Trend.
The market for calves followed
closely the trend of the steer trade with
receipts slightly less than in 1880
There was a fairly good market for veal
| material during the first half of the
year, but later with increased supplies
and a narrow outlet, the market broke
to the lowest in 20 years. During the
early part of December packers were
buying most of their calves at from S5
to $6 compared with $l2.50 to $3.50
during January.
Producers of hogs can mark up 1881
| as their worst year since 1899.
The supply was no larger than last
year at Chicago and at 20 primary
points will show a decrease of some
| failed to stabilize the market. The
| declining demand from consumers
proved surprising and disappointing
| The outlet for pork products was mar
rover in all directions and even in the
| face of decrease slaughter of swine
| packers were not abe to merchandise
pork on satisfactory basis.
General conditions were bad In
Europe and Germany and Holland
! greatly expanded their swine produc-
ton. Our export business fell A per
cent. Lard met with restricted sale
and showed 26 per cent decline in
| exports.
Everywhere pork products sold son a
restricted basis In the South, where
most of our salt pork is consumed, de-
mand was unusually low owing to the
| demoralized condition of the cotton
market, which modified buying power
Hog prices started to tumble early in
| February and found the grade con-
| tinually sleeper as they neared the end
| of the year. The usual September rise
failed to develop because the Spring
crop Of pigs started marketward earlier
than usual. Buyers were offered more
| hogs than they needed. From mid
Summer until the 1st of De ecember, the
! decline was precipitous and touched
S4.25 for the top during December, the
p 81,