The livestock and wool situation

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Material Information

Title:
The livestock and wool situation
Physical Description:
52 no. : ; 28 cm.
Language:
English
Creator:
United States -- Bureau of Agricultural Economics
United States -- Dept. of Agriculture. -- Outlook and Situation Board
Publisher:
Bureau of Agricultural Economics, U.S. Dept. of Agriculture
Place of Publication:
Washington, D.C.
Publication Date:
Frequency:
monthly
regular

Subjects

Subjects / Keywords:
Livestock -- Marketing -- Statistics -- Periodicals -- United States   ( lcsh )
Animal industry -- Statistics -- Periodicals -- United States   ( lcsh )
Wool industry -- Statistics -- Periodicals -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
statistics   ( marcgt )

Notes

Statement of Responsibility:
Bureau of Agricultural Economics, United States Department of Agriculture.
Dates or Sequential Designation:
LWS-1 (May 1942)- LWS-52 (Dec. 1946).
General Note:
Title from caption.
General Note:
Approved by: Outlook and Situation Board, 1946.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004884702
oclc - 01780425
lccn - 46034600
Classification:
lcc - HD9414 .A121
System ID:
AA00012196:00003

Related Items

Preceded by:
Livestock situation
Preceded by:
Wool situation (1937)
Succeeded by:
Livestock and meat situation
Succeeded by:
Wool situation (1947)


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S SITUATION


LWS-!


BUREAU OF AGRICULTURAL ECONOMICS
UNITED STATES DEPARTMENT OF AGRICULTURE

5 QSEPTE


PRICES OF SLAUGHTER LIVESTOCK AT CHICAGO.
AVERAGE 1931-40, AND 1941-42
DOLLARS
PER100 HOGS. PACKER AND SHIPPER PURCHASES
POUNDS I 1 I I |
14 1942


MBER 1942


JAN. FEB MAR. APR MAY JUNE JULY AUG. SEPT. OCT NOV DEC
iU DHPAIUr ET Or AHICULTUIRE RaI 9297 IUIEAU OF a*MICULTUAAL ECONOMICS


MARKETING OF ALL LIVESTOCK HAVE BEEN GREATER IN 1942 THAN IN 1941, BUT
THE EFFECT OF THE INCREASED SUPPLIES UPON PRICES HAS BEEN MORE TJ4AN OFF-
SET BY THE STRONG WARTIME DEMAND FOR MEATS. IN RECENT MONTHS HOG PRICES
HAVE BEEN AT THE MAXIMUM LEVEL PERMITTED BY CEILING PRICES FOR PORK AND
LARD. WITHOUT CEILINGS FOR MEATS, HOG PRICES PROBABLY WOULD HAVE RISEN
O MUCH HIGHER LEVEL, AND HIGHER CATTLE PRICES ALSO MIGHT HAVE PREVAILED.
BECAUSE OF EXCEPTIONALLY LARGE MARKETING, LAMB PRICES PROBABLY WOULD
EOT BE MUCH HIGHER THAN THEY NOW ARE UNDER THE RECENTLY ESTABLISHED CEIL-
.iG PRICES FOR DRESSED LAMB.
i4,.L
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INSPECTED SLAUGHTER OF LIVESTOCK.
AVERAGE 1931-40, AND 1941-42


JAN. FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
B A I DATA


U S DEPARTMENT 0F AGRICULTURE


NEG 3?829 BUREAU OF AGRICULTURAL ECONOMICS


FIGURE I.-- MARKETING OF LIVESTOCK FOR SLAUGHTER HAVE BEEN RUN-
NING MUCH GREATER THAN A YEAR EARLIER. IN THE FIRST 8 MONTHS OF 1942
INCREASES IN INSPECTED SLAUGHTER OVER 1941 HAVE AMOUNTED TO 17 PER-
CENT FOR HOGS, 15 PERCENT FOR CATTLE, 7 PERCENT FOR SHEEP AND LAMBS,
AND 4 PERCENT FOR CALVES. EX C E P T FOR CALVES, THE YEAR'S TOTAL
SLAUGHTER OF EA C H SPECIES OF MEAT ANIMALS IS EXPECTED TO B E THE
LARGEST ON RECORD.





-" ^


THOUSANDS


6.000



5.000



4.000



3.000


1.200


1.000



800



600
2.000


1.800



1 600



1.400



1.200




, .

LWS-5 3 -

-- -- -- -- -- ----------"- "' "--- - -
THE LIVES 0 K AND T0 0 L S I TUATI ON

-----" ------------------------------------
S'mn2ry

SThe mr.rket movement of the Irrcec 1942 spring pig crop soon will get

under way. Considerable numbers of n-'v-clop hogs already have been reported

at some markets, anC a so:.:.what e-ali.r th-a usual narrket novenent of spring

Sprigs appears likely this fall. Slaughter supplies of hojs during the next 3

months (0ctober--Decc'ber) are expected& to exceed those of year orlier by

at least 25 percent. No -reat decline is o:eected in ho,: prices during the

next several mortna unless temporary rnirkct cluts should result from unusual

concentrations in nmrketirg. Rith lond-lcase and domestic consu-cr purchases

of hog products exncctcd to tb steip.pe up s:'-r"ly in coning r'eeis, totnl demand
/
for ne.ts appears rreat enough to absorb the lerpe seasonal increase in sup-

plies at prices rot much lower then those which h.ve prcvpile'd urinF tht

past several r.nths.

Shipments of feeder cattle to 7 Corn Belt States rere about 20 percent

greater this August thnn lnst, rith the ]heavy movement continuing in early

September. Uncertainties regarding the possible effect of price ceilings

upon feeding margins probably have discourszed son" cattle feeders from buy-

ing cattle. But with abundant supplies of corn Pnd other feeds in the

Corn Belt, it appears likely that the total nunrher of cattle fed during the

,1942-43 feeding season will again be lrire.

Contracting for feeder lkmbs in the Western States was curtailed sone-

what in early Septenber, following a. decline in fat lanb prices. Strong con-

petition for feederlamibs has been reported in recent reeks, and with abundant

feed supplies in most of the principal feeding areas, the number of lambs fed

this season ay exceed the record Iprge number fed last year.




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S3PTEMBER 1942 4 :i

Despite the slightly analler lanb crop this ye-.r than last, narketings

of shc-Tp nd lmnbs for slaughter since late spring have totaled. about 8 per-

cent larger than a year earlier. Thie, at a tine when range conditions are

generally good, indicates that sheep numbers probably have reached a peak and

that sone liquidation of breeding stock -ay be under v y.

Recent negotiations by the Army. Quartermaster for eubstantial quan-

titles of wool cloth and blankets to be n-de of 100 percent domestic wool

have had a strengthening effect on wool prices. Boston market prices of

nest domestic wools are now close tn the peak prices of early spring. Sales

at western actionss in early Septenber were reported at ceiling levels. Mill

consumption of apparel wool reached a new record high of 11. million pounds

a week (scurcd basis) in July. The July rate was 7 nerccnt higher than in

June and 23 percent higher thpn in July 1941.

-- September 21, 1942

REVIEW! O2 RECE:TT -EV'LOPMEITTS

Hog Prices Decline in Errly Scptenbcr

Hog prices declined moderatoly after rid-Aug;ust, reflecting a sharp
increase in narkotings. The moderate .ccline in hog prices was reflected in
a similar reduction in the hoF-corn price ratio. The ratio for the week
ended Scptcr.'er 12, based upon Chicego average prices, was 16.9, still higher
than a year earlier r. conrsiderably higher than the lone-time average.

The avera.-e prics nf $14.45 for butcher hogs at Chicago in.the week
ended Septonbor 12 was still substantially higher than in most previous weeks
of 1942, rnl nearly $2.50 higher thpn in the corresponding week of 1941. The
Unitca States average price of $14.13 received by far-ers for hogs in mid-
August ewa $3,65 higher then a year earlier and the highest in over 20 year's.

Hog Slaurhtcr an. Storage St-cks
R.-.luced Seesonally in. August

Further seasonal reduction in hog narketines occurred during August,
but supplies increased considerably iurinr er.rly Septenber as new crop hogs
began to be .erketed. Inspected ho; slnauhter during August totaled about
3.2 million -h!al, 17 percent less than in July but 15 percent mre than in
August 1941. Slaughter was the largest for the month since 1933. Packing






WO 5
I1-W5 5 -

sows accounted for 33 percent of total packer end shipper purchases at
7 important markets during August, compared with 30 percent a year earlier.
?: The actual number of sows marketed during July Pnd August probably was about
Sa little over 30 percent greater than a year nerlier, little nore than the
!' percentage increase -in the number of sovs farrowed last spring.

The average weight of barrows and gilts marketed during August ws
<;about the same th's year Ps last. But the increased proportion of packing
sown in total marketings was reflected in a somewhat heavier average weight
*'for all hogs than in August last year. So far in 1942 r'verngc eights of
boga slaughtered under Federal inspection have bean "bout 1-1/2 pounds
b:q.'eavier than in 1942 when the r.verpge for the yer no.s 241 pounds per hog.

The net out-of-storage novement of pork during August enounted to
I'aearly 94 million pounds, reducing stocks on September 1 to 340 million
pounds. The Septeo.ber 1 figure for pork was 145 million pounds less than
j last-'year, and about 130 million pounds below the 1931-40 average for that
Ma.dte. Lard stocks (including rendered pork fat) were reduced about 15 million
S pounda during August Storeae holdings on Septenber 1 were nearly 83 million
Sounds, compared with the record large Septonber 1 stocks of 288 million
.pounds last year and the 1931-40 average for that date of 138 million pounds.
S::.- AStorage stocks held by the FSCO on September 1 amounted to 49 million pounds
of pork and 23 nillion pounds of lard and rondero:d pork fat.

Government Purchases of P-rk and Lard
Also Reduced

SGovernnent buying of hog products was reluccd sharply during August
Sin line with the seasonally reduced supplies. Pork purchases by the FSCC
Sfor the month amounted to only 87 million pounds, compereo with a monthly
r.:rate of around 200 Million poun-Is during the late spring and early sunner.
Ip/.Aagust lard purchases of 35 million pounds were less thPn half the April-
June nnthly averpse. Purchases are expected to be increased sharply during
the next several months.

..-gttle Prices Moderately
S tronger in Mid-Septenber -

Cattle prices declined somewhat in late Augist and early September,
I:-reflecting exceptionally heavy narketings. Prices then strengthened and in
a:id-bSid-Septenbrer were about as high as in early August. The average price of
go. od grade beef steers at Chicago for the reek ended September 12 was $14.95,
'compared with $14.90 a nonth earlier and $11.70 a year earlier.

SPrices for feeder cattle fluctuated noderatelyin recent weeks but
continued near the level prevailing since nid-sunnor. The average price of
S..feeder steers at Kansas City in mid-Septenber was $11.75, the sa e as a nonth
-earlier but about $1.65 higher.than in September 1941.

I Slaughter at Reo rd Level

M;..I arketings of slaughter cattle continued exceptionally large during
i.Eagie. refleang a heavy movement of both rence cattle and cattle from feed






lots. Inspected slaughter totaled slightly nare thPn 1.1 nillionf 'aou.d l
largest on record for August, 5 percent nore than in July and 14 percent .6M
nore than in August 1941. So 'far in 1942 cattle sla.ughter has totaled 1l:
percent greater than'for-the sane period last year.

Inspected calf slaughter af 460,000 head during August was sliitgliy
smaller than a nonth earlier but was 11 percent greater then a year earlieG
The S-nonth (January-August) accumulation for calf slaughter is 4 percent-' .
larger this"year than last. -

Lanb Prices Decline Sharply; Slaughter Lre ..

Unusually heavy mnrketings of sheep and labs during late Auiust and.":
early September were reflected in a sharp decline in lanb prices. The aver-
age price of $13.95 fcr good and choice grade slaughter larTbs at Chicago for
the week ended Septenber 12 compares with $14.95 three reeks earlier and
$11.80 in the corresponding week last year. Average prices were about $6.00
for g~od and choice grade slaughter ewes at Chicago in rid-September, nearly
$1.00 higher than a year earlier.

Despite the slightly smaller l.nb crop this year than last in the
past 2 months slaughter supplies of sheep a.nd lanbs have been much larger
than a year earlier. Slaughter-under Federal inspection during August was
a record, totaling 1,840,000 head, 8 percent nore th.n in July and 21 peraeon
more than in August 1941.

OUTLOOK HOGS

BA:CKGROUND.- Eor roriccs declined to a low level in 1940,
and a. re-uction in the 1941 pig crop was in prospect. In
December 19L0 farmers were urged not to reduce the spring
pig crop, and in April 1541 thcy were asked to step up hog
production as rapidly as possible. Government support of
hog priccs was Pssured at a- level substantially higher than
in late 1940, and prices advan-ed sharply in response to
ex-paUrin..- consumer der.nd :and lend-leese buying. As a
result, the 1941 crop vms 5 million head greater thpn the
1940 crop; a further increase nf 20 million head in the
1942 pig crop is indicated.

Seasonal Increase in Hog Marietings -
Soon to Get Under Wy

The narkot movement of the lar.ze 1942 sprinF pig crop will get under.
way in volume within the next for weeks. Considerable numbers of new crop
hogs already have been reported at sone markets, Pan P. somewhat earlier th
usual market movement of spring pigs appears likely this fall. If the pro-
portion of the spring crop brrketed. before January 1 is about average, ;i
slauolter supplies of hogs in the last quarter'(October-Decen:ber) of 19,4- .
are expected to be at least 25 percent greater than in that period last. yea
Slaughter under Feleral inspection for th, quarter probably will total betwk
18 and 19 million head, 4 to 5 million head nore than a. year earlier. ,


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1936-41 average V --al
spread between Value of hog Average
Month live-hog and product" ob- price
ho-product trained from : live hogs : Spread
values 100 pounds 2
_______l ___live to. 11/ :_
Dollars Do:Ia',s Dollars Dollars


January
February
March
April
May
June
July
August
"Sept:ember :
October
November
-December


.83
.72
.71
.91
.94
.99
.50
1.04
1.31
1.00
.96
.81


12, ,2
13.64
14.27
14.59
14.56
lh.56
14,64
14.72
l/ 14.77


11.53
12.73
13.36
1'.03
14,05O
14.26
i4.63
14.92
1/ 14.35


.79
.91
.87
.56
.4g
.30
.01
-.20
3/ .42


:..:.Compiled from Agricultural Marketing Administration reports.
I Value ofall edible products, fresh basis, lard.rendered, carlot basis.
Good and choice 180-220 pound weight.
Week ended. September 12.
N ,.. ,


Outlook For Hog Prices Cortlnues F'-orab.le

Despite the .exceptionally heavy marketing in prospect for this fall and
winter, no great decline in Lho prices is ejected during the next .few -months.
Unless marketing should so exceed transrorc tion. rnd prr.ce-zsir.s facilities as
to result in temporarily glutted marketing conrd:ticas, the sti.n. consumer
demand, together with increased buying for lend..:-.s e, is expected to absorb
the increased production of porl; and lard rwithcu; a seriously depressing effect
upon live hog prices. Ordinarily h6g prices advance curing the summer as
marketing are reduced seasonally and then decline with the creaseae in
supplies during the fall and.'winter. This year the sr-rTer *r-.--a in hog prices
has been leveled off by the ceiling prices for Y -k a i lar;. He,..e current
prices fo.r hogs may nob be greapily above the le;.L wh.ch normally could be
expected on the basis -of the prospective supnly and demand conditions this fall
and winter.

One factor of unusual iminortance in the outlook fcr hog prices during
the next few' weeks is the spread, -b-twpen li-.e-hog and hog-i odi.ct values.
Packer competition for hogs has been very strong during th ase st several
months, with the result that iive hog prclr- have rlzeni :eltiLve to prices for
hog produces at ceiling levels, Hence, tlis spread wa's reilded sharply and
some packers reported financial losses. With ho- ruo-lics expected to in-
crease greatly during the next several wee'cs, pc-:.crs probably will be able to
buy hogs at prices more nearly in line with the u',al relationship to product
values. As .-nown in the acccmnu.rying table, t.-is rwiening rf the margin would
permit a decline in live ho, pr:'cs of abcut .1 from tne hl:h Augv-' prices,
even though prices for pork and lard are maintained at ceiling levels.

Table 1.- Monthly average wholesale value of hog products derived
-from 100 pounds live hog, co.-mpared %ith pii.es of live
hogs, Chicago, 1936-41 average, 1942





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SEPTEMBER 1942 A 5 *r,*.9(

Other factors which may influence-hog prices during coming month
revisions in pork price ceilings now being formulated by the Office of ricei
Administration, and the possibility that ceilings will be established for .'.f
prices of live hogs. Licensing of mea.t packers and wholesalers by Office of014
Price Administration, allocation of meat sup-lies, and:prospective future :.N
action in consumers' rationing of meats also may influence live-hog pridesa;.

OUTLOOK CAOTLBE

BACKGROUND.- Cattle numbers tend to fluctuate in cycles of
around 15 years in length. A low point in the cycle was :
reached in 1938, but herds have been built up greatly since
then. The total number of cattle and calves on farms and
ranches on January 1, 1942 was slightly larger than the :'
previous peak number at the beginning of 1934. In 1942
goals, farmers were asked to increase marketing of cattle
this year rather than to increase production by continuing
to hold ba:k breeding stock. Strong consumer demand
conduit on3 have more than offset the effect on price of in-
crease.. marketing of cattle during the past 12 months, and
the gei.eral level of cattle prices is now the highest in :
over 20 years. .'

Cattle Marketings Expected to Continue
Large During Remainder of 1942

So far in 1942 marsetings of cattle for slaughter have.totaled about.'
15 percent greater than a year earlier. A large part of this increase over
1941 has been in fed cattle from the Corn Belt. Because of the 19 percent
reduction in the number of cattle on feed in the Corn Belt August 1, supplies
of well-finished cattle during the remainder of the year may be a little
smaller than in the fall and early winter of 1941. This decrease probably'
will be more than offset by marketing of grass cattle from all areas,
however, and total cattle slaughter is expected to continue substantially .
greater than a year earlier. Even though the 15 percent rate of increase of,
the past S months should not be fully maintained during September-December,
it is now quite certain that this year's cattle slaughter will set a new
high record. Slaughter under Federal inspection may total more than 12
million head. This compares with 10.9 million head in 1941.and the previous
record of 11.8 million head in 1918. Present indications are that the 1942
goal for total cattle and calf slaughter of 28 million head will be about
reached.

Feeder Cattle Shipments Continue
Larger Than a Year Earlier

Shipments of feeder cattle to the Corn Belt were large during the pasf i
month, despite some uncertainties in the cattlefoeding outlook. Shipmentsto.si
enCorn Belt States for August totaled 173,000 head, about 3000 more than a'i
year earlier. Purchases of feeder steers at four important feeder cattle :
markets during the period also were much larger than a year earlier, with th
heavy movement continuing in early September'.



U';i U
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SLWS-5 9 -

: As pointed out in the August issue of this report, the relationships
Between feeder' cattle, feed, and fat cattle prices this summer and fall have
r not been particularly unfavorable, compared with other recent years. Un-
certainties regarding te possible effect of pzire ceilings upon feeding
Margins probably have discouraged some cattle feeders from buying cattle.
h. But with abundant supplies of corn and other feeds in the Corn Belt, it ap-
jpeale likely. that tne number of cattle fed in the 1942-43 feeding season will
again be large.

Table 2.- Shipments of stocker and feeder rattle, 1941 and 1942

.' Shipments to seven Corn belt State- I/ : Shipments of feeder
month : Direct : From public : ootal : steers from four
:t :: stockyards __markets 2/
1: i 142 : 1o4i : 19h2 1: 1)4l : :I.C IL : 19 2
S'T Thou- Thou- Thou- Thou- Thou- Thou- Thou- Thou-
sa.ds saids sands .sands sends sands sands sands

ary : 28.9 16. 75.1 72.3 104.0 89.1 4g.2 53.6
uary : .7 12.1 54.I 49.2 72.8 61.3 39.4 '42.9
6h 3 17.1 57.. 67.4 62.7 84.5 44.- 58.8
1 : 3'- 42.2 72.8 S4.1 10g.h 126.3 5.6 72.9
S 32.1 27.1 63.9 63.8 9.0 90o.9 36.3 45.7
: 23.3 18.4 46.4 61.2 69.7 7.6 27.7 32.5
10 21. 13.0 58.6 56.C 2.7 74.0 1. 25.7
set ,: 4^.1 57.4 97-6 115.4 142.7 172.S 53.1 82.7
ptember : 117.2 153.0 270.2 110.7
stober : 173.1 231.7 404.q 146.6
memberr : 91.4 12.2 273.6 94.9
cember 51.1 137.7 18.7? 94.3
Potal 65.6 1.20.9 ,96.5 735.5

SOhio, Indiana, Michigan, Wisconsin, Minnesota, Iowa, Nebraska.
"KChicago, Kansas City, St. Paul, Omaha.
CUTLOOK SHEEP AidD LjP'BS

BACK 'ROUND.- The total sheep population of the United States
has increased during the past several years. Numbers of
sheep and lambs on farms and ranches at the beginning of 1942
totaled 56 million head. The 1942 lamb crop of 32.3 million
hr.fd was slightly smaller than the record large crop of 1941.
SLamb prices have advanced considerably during the past 4 years.

Moderate ROduction in Sheep Numbers
Likely Diring 192

SDesptte the slightly smaller lamb crop this year than last, marketing
of sheep ani lambs for slaughter since early-May, the beginning of the spring
lamb marketing season, have totaled about 8 percent larger than a year
earlier. Some of this increase may have resulted from a larger than usual
carry-over of yearlings into the 1942-43 marketing season. But with the sharp
increase in slaughter during the past 2 months, qnd with range feed conditions

: A. *:,. : i" ...







SEPTEMBER 1942 10 *' :

generally good, it now appears likely that a larger than usual proportion of
the 1942 lamb crop is being marketed for slaughter, and fewer ewe lambs are
being held for replacement in herds. This, together with the large marketing
of ewe sheep, indicates that some reduction of sheep numbers, particularly in |
the Western Sheep States, may be under way. The total number of sheep and i
lambs on farms and ranches at the beginning of 1943 may be smaller than the
record large number on hand a year earlier.

Lamb Feeding Situation

Contracting for feeder lambs in the Western States was curtailed some-
what in early September, following the recent decline in fat lamb prices.
Contracting had been quite active with strong competition reported between
feed lot operators from the various feeding areas and buyers for wheat field
grazing. Wheat pastures are expected to provide at lepst as much feed for
livestock grazing this fall as last. If shipments of feeder lambs to the Corr.
Belt during the next 2 months continue as large relative to a year earlier as"
in July and August, the total number of lambs fed in the 1942-43 feeding season
may be a little larger than the record number fed last year.

THE WOOL SITUATION

BACKGROUND.- As a result of large production of wool fabrics
for Army use and strong civilian demand, mill consumption of
wool has been at a record level since the latter part of 1940.
Because of the large prospective requirements for military
use under war conditions and because of the possibility that
wool imports (chiefly from Southern Hemisphere countries)
could be sharply restricted, actionn was taken by the War
Production Board in January 1942 to curtail the manufacture
of wool for civilian uses. Wool prices advanced rapidly in
1940 and 1941 and maximum prices were established for wool
by the Office of Price Administration in mid-December 1941.
Local !.!rket prices for wool in the current season are the
highest since 1925.

Sales Large, Prices Strengthen at Boston
in August and Early September

Sales of domestic wool have been large and prices have strengthened
during the past month. The opening of negotiations for large quantities of
Army and lend-lease fabrics to be made of 100 percent domestic wool was chiefly
responsible for the strong market position. Demand was centered on fine and
1/2 blood wools during most of the month but interest in medium grades in-
creased when requests for Army cloth were found to require thd use of large
quantities nf medium wools. Quoted prices for fine staple combing territory
wools remained unchanged at $1.1S-$1.20 a pound (scoured basis) for fine and
$1.13-$1.16 for 1/2 blood. Prices on these wools are at or close to ceiling
levels. Quoted prices on 3/8 and 1/4 blood bright fleece wools advanced 2
cents a pound (grease basis). These grades were sold at 50-54 cents a pound
in the early part of September compared with 49-51 cents a month earlier and'
about 48 cents a year earlier. The average price received by farmers for wool



.. .. ......M




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was 39.4 cents a pound on August 15 compared with 39.2 cents on July 15 and
35.6 cents on August 15, 1942. The August price this year was 142 percent of
the parity price for wool.

Western Wool Auctions Bring
Ceiling Prices

SSubstantial quantities of wool were offered at auction in Western
:: markets in the latter part of August and in early September. Auctions were
.held at Denver, Billings (Montana), Portland, and San Francisco. Demand was
good at all centers and most of the offerings were sold. Buyers and market
observers report that prices were at or close to ceiling levels in most cases.
Prices at the 3 days sale at Denver, August 27-29, ranged from 27 to 55 cents
a pound (grease basis), with an average price of 40.6 cents on sales of
2,567,400 pounds. Sales at Billings, Montana in early September totaled
S2,728,900 pounds at an average price of 46.2 cents a pound. The "high" of
55.5 cents a pound at the Billings sale probably was the highest price paid for
Western territory wools in many years. The bulk of the offerings were original
bag wools and fine graded wools.

July Conswrntion of Apparel Wool
Tops Previous Record

Mill consumption of apparel wool j averaged 11.5 million pounds a week
('coured basis) in July, a new high record. The July rate was 7 percent high-
er than that of June and 23 percent higher than in Jully 19!l. Ab-utl 41 percent
of the apparel wool consumed in July was domestic wool, compared with 37 per-
cent in June. Consumption of apparel wool on a greas; shorn and pulled basis
totaled 610 million pounds in the first 7 months of this year compared with
about 532 million pounds in the corresponding period last year. About 277
million pounds of domestic wool were used from January through July.

The increased consumption of apparel wool so far in 1942 has been offset
in large part by the decline in consumption of carpet wool 2/ which is not
used to any great extent for military purposes. Consumntion of carpet wool in
July was only one-third as large as in July 1911. Conrsuption in the first 7
months of 1942 was 40 million pounds (greasy shorn and pulled) compared with
112'million pounds in the corresponding period last year. Consumption of
carpet wool was at a relatively high level until restrictions were imnosed by
the War Production Board at the beginning of 1942.

Army Will Order Large quantities of
Wool Fabrics and Blankets

The Army' Quartermaster Division is negotiating with mills for large
quantities of military and lend-lease fabrics to be made of 100 percent
-d;omstic wool. This is in fulfillment of measures recently agreed upon to
provide an outlet for remaining supplies of the 1942 domestic clip. Where

1/ All domestic wool and duty paid foreign wool.
2/ Duty-free foreign wool, used chiefly in floor coverings and press cloth.



*.





SEPTEMBER 1942 12 ...

mills are now working on Army orders the deliveries. on the-new' orders will
follow existing contracts, but deliveries are to be compl ted-.b' .u.sl. 30,
1943. Present contracts run through the remainder of 1942 and delivery on
new orders will be chiefly in the first half of 19h3. The items specified.
by the Arny will require about 78 million pounds of scoured wool, according.'
to commercial estimates. This is equivalent to about 170 million pounds of
greasy shorn domestic wool.

Unfilled Orders For Wool Cloth Thrae Times i
Average; J4 of Total For Government Use ,

Unfilled orders for wool cloth reported by 119 mills on June 27.
totaled 110 million linear yards, according to statistics published by the-.,::i
National Association of Wool Manufacturers. S'ch orders were about 13
percent larger than a year earlier and were about 3 times the average for the.::
years 1936--40. About 3/4 of the total (80 million yards) was for Government
account. Unfilled orders for civilian fabrics have been reduced each
quarter since tnc ra.iddle of ?.934 and at the end of June 1942 totaled only
29.5 million. ;'artis :omrjarEd with 73.9 million yards a year earlier. Delivery.-
of Government fabrics was scheduled through January 1943. Production of
fabrics by reporting mills in the second quarter of 1942 was at a rate of
about 23 million yards a month.

Table 3.- Wool cloth: Unfilled orders reported by 119 mills,
United States, specified dates 1940-42

: ________ len's year : : :___
D : : : : Women's : Auto
:Government: Other :Total wear cloths 1: Tota

: 1,000 1,0 00 00 1,000 1,000 000 ,:00
: linear linear linear linear linear linear
: yards yards zard.s yards yards yards ..
1940
March 30 : 743 21,297 22,045 4,429 1,136 27,610
June 29 : 9,436 17,564 27,000 12,933 3,064 42,997
Sept. 28 : 12,806 19,200 32,006 10,919 2,927 45.852
Dec. 28 : 23,457 25.799 54,256 11,403 2,494 6C,153

1941 :
March 29 20,143 40,256 60,404 12,170 2,675 75,249
June 2d : 23,013 49,315 72,333 18,961 5,605 96,899
Sept. 27 :29,010 48,546 77,556 17.805 3,097 98.458

1942 :
Jan. 3 : 54,126 34,189 88,315 12,470 1,508 102,293.
March 28 9 51,519 27,243 78,762 10,357 672 89,791
SJune 27 : g0,495 21.520 102,015 791'9 9 .109.973
Compiled from Monthly Statistics of Wool manufacture, published by the National'::
Association of Wool Manufacturers. Statistics are for cloth containing by weightil
over 25 percent of yarns spun on the woolen and worsted system. Cloth less tha::!
inches wide reported in equivalent 54 inch yardage. ...
1/ Excludes cloth with pile or jacquard design. :

". '.': ":i
....iAA




"" '
i
i ;



r
;;;.
:r


Stocks of Wool and Similar Fiberq
at Record High

Stocks of wool held by Unit,-.a States dealers and manufacturers on
July 4, 1942 totaled 645 million pounds (.Troasy shorn and Dulled basis). This
total included apparel and carpet class wooli. About 321 million pounds were
domestic wools and 324 million pounds ''ere foreign wools. On June 28, 1941
dealers and manufacturers reported 192 million pounds of domestic wool and
246 million pounds of foreign wool on lind. The totals for the 2 years are
not strictly comparable because of the larger number of firms reporting in
1942. The July 4 stocks this year were much larger than in any recent year.
They were not unusually large, however, in relation to the current high rate
of mill consumption and the large backlog of unfilled orders held by mills.
The stocks reported by dealers and manufacturers were about 6-1/2 months
supply at the July rate of consumption. Because a considerable quantity of
the domestic clip is still unsold on farms and ranches in early July, the
reported stocks do not include the total supplies of domestic wool available.

A breaK-down of the July 4 figures shows that about 525 million pounds
were wools sgading finer than '44s, the grades required in the manufacture of
Army fabrics. About 117 milli--i pounds were 44s and coarser, including 30
million poun'LL of coarse carpet wools. The coease vools are not being used to
any great extent in military fabrics. Stocks of wool and similar fibers
reported on July 4 are shown in the following table:


S Teble 4.-





Gr-----de-
Grade


.m-r' on* '


Stocks of wool and similar fibers held by dealers and manufacturers,
in the United States, grease basis, shorn and pulled
July 4, 1942 /j

: Domestic Foreign ; _Total

: Dealers : Mau-: Dealers: Mu- : Dealers :4 anu-
facturers .facturers, .facturers
:1,000 lb. 1,000 lb. 1,000 0b. l,OOO l.b. 1,000 lb. 1,000 lb.


wnnli


Ungraded 2/ .............: 52,297 -- -- -- 52,297 ---
Fine (649 and finer) ....: 51,331 65,558 11,572 83,159 62,903. 1I8,717
1/2 blood. (60s-62s) .....: 26,265 20,006 6,836 31,228 33,101 51,234
3/8 blood (56s-58s)......: 32,503 29,708 16,547 34,427 49,050 64,135
1/4 blood (50s-52s) .....i 15,967 18,566 5,063 9,853 21,030 28,449
low 1/4 blood 4.(6-48s) .: 1,847 4,076 2,525 9.218 ,4172 13,394
Total above f-.*ited to:
k Army fabrics) ......: 180,210 137,914 L2,3hL 163,015 222,553 305.929
common (14s) ............: 552 1,698 2,877 8,227 3,429 9,925
Braid and coars''(36s-40s:
ead fine carpet omle).. : 385 292 13,485 59,742 13,870 60,034.
'Cease carpet wools 7....: 274 155 3,385 25,789 3.659 25,924
Total sheep's'wool ...: 181,421 l40,0o9 62,090 .261.773 243.511 401 812
Mohair ................... 8,786 6439
Alpaca ................... 1.300 983
Other llama fibers ...... 226 148
Camel-hair ..........*....: _6 138
compiledd from Wool Stocks Report, Bureau of the Census.
These stat',tics do -not include wool afloat to United States dealers and
manufacturers, land wools held by the Defense Sup-plies Corporation as a strategic
serve. 2/ Warehouse and country dealer wool. The bulk of this .wool probably is
I.fine and 1/2 blood grnAes.


LWS-5


- 13 -





SEPTEMBER 1942


Livestock: Marketings and slatghLar statistics, by species,
August 1942 with comparisons


: : Jan.JulJy 194
Item : Unit : 1940 1941 : 1942 SAug* JFuly h Aug.
0 *
-*____ ___ N U ____6-- S_ r. r -_ --- -* --- -
S .


Cattle and cPlver -
Number slaughtereol under
Federal inspection:
Steers ...................... Thousand
Cows and heifers ..........:
All cattle ..................
Percent cows and heifers
are of total cattle .......: Pct.
Calves ......................: Thousand.


Average livc woight :
Cattle ...................... Lb. :
Calves ......................: "
Total dressed weight:
Cattle ....................... Mil. lb, :
Calves ......................: "
Shipments of feeder cattle rnd :
calves to sevon Corn Belt :
States / o...................: Thousand
* 0 -
Iumber slaughtered under :
Federal inspection ..........: 2
Average live weight .......... : Lb.
Percent packing sows are of all:
purchases at seven markets ...: Pt.
Total production under :
Federal inspection: a
Pork ......................... Mil. lb. :
Lard ................
Average yield per hog: :
Pork .........,............. Lb.
Lard 2/ ..................... "
Storage stocks end of month: :
Pork ,........................ Mil. lb. :
Laord 2j/ ....................I "
Shopp and Irmbs- *
Number slaughtered under :
Federal inspection ........... Thousand :
Average live weight *,.........: Lb, :
Total dressed weight ..........3 Mil. Ib.
Shipments of feeder lambs to :
seven Corn Belt States I/ ...: Thousand a
Total dressed weight of livo- :
stock slanghtered under :
Federal inspection ..,.........: Mil. 1b. :


2,910
2,259
5,393


3


2
'8


3,072
2,574
5,909


3,714
2,823
6,So6


491
42S
969


1,O4
114


41.9 43.6 41.5 44.2 42.0
,109 3,132 3,232 414 461 460

950 950 969 962 957
179 '185 190 209 211

,sl9 3,120 3,6-2 509 552 "4i
314 326 3&5 49 55


611 616 6o6 143 74 173


,220 26,319 30,813 2,796 3,886 3,223;
235 241 243 261 265

10 8 10 30 28 E 33


,713 3,821 4,243 415 583
910 876 1,016 98 139

132.3 137.1 138.3 149.1 150.4
32.3 33.4 33.1 35.2 35.9
S- -- 45 434 D44
-- 288 98 / 9 S


9,777 10358 10,918 1,522 1,705 1,&f
87 90 91 85 84 .:
399 436 459 60 67 .

719 742 817 379 135

Sin CC8 i in 6 719 1 1CI 1&7 1
O,13L OLPT LIJJ1~ -u


1. Total shipments direct and from public stockyards to hio, Indiana, Michigan
Wisconsin, Minnesota, Iowa, and Nebraska.
2 Including rendered pork fat.
/ Preliminary. :,


-- *,* i..:'. :


--


- AJ -


3


(


O8, O91 UUT Ul|W 2LI' *I "1 I


I








i::
|
f^'


choicee and Prime ,,......
iod ............ .......
Medium ..*..... ...........
Oommon .*.u*,,...a.........
All grades .C....s..........
id grade cows at Cnicago ...:
1Lers. Good and Choice at :


12,23
11.36
10.02
8.64
11.33
8.43


13.61
12.20
10.35
3.25
11,91
8.50


11.69
10.82
9.21
7.21
11.00
7.41


12.06

10.62

11.73
8.72


14.09
13.12
12.07
10.89
13.11
10.70


14.6g
13-75
12.73
10.78
13.63
10.53


15.77
14.87
13.38
11.27
14.87
11.29


ago .......... ......: 12.17
Br and feeder stet-'s at :
as City ....... ........ : 9.93


rage price paid by packers :
All cattle ................:
Steers ,......... sm.......:
Calves .....................:


9.14
10.67
10.12


age market price at
cago :
Barrows and gilts .........: 9.47
sowa ......4................ : .34
A1l purchases ......,....: 9,45
rage price paid b.' packers : 9.42
,erage price No. 3 yellow :
chrn at Chicago 3 ..........: 70.4
corn price ratio at
Chicago !] ................... 13.4
Sand lambs -
ring lambs, Good and Choice
r.gade at Chicago ............ --
?6eding lambs, Good and Choice:
-p.ade at Omaha ..............: 10.27
MoS, Good and Choice grade
at .Chicago .................. 5.43
*erage price paid by packers 1
Sor sheep and lambs ......... 10.16
taX retail meat prices 5/ .. 92.4
Raex income of industrial
workers / ..................: 127


i7 8.87


8.68

10%5


2/

10.77
10.93


8.53 9.79

8.24 9.57
9.95 11.03
9.33 10.55


6.69
5.60
6.21
6.19


11.23
10.03
10.68
10.1 l


11.83 11.09 12.05


11.40
12.56
12.42



14.26
13.82
14.19
14.05


11.30
12.59
12.22


14.55
13.73
14.25
14.12


14.74
13.95
14.37
2/


102.0 66.0 74.9 s4.6 86.0 84.4

10.8 9.4 14.3 16.8 16.6 17.0


13.74 9.40 11.63 15.13 14.43 14,77

13.22 8.39 10.63 12.52 12.94

6.04 3.30 4.80 6.11 5.68 6.o01


12.61
102.9

100


8.12 10.06
85.3 95.6


12.59 12.14 2
108.9 109.6 11l.


94 136 169 177


1925-29 avo'age; not available prior to 1925.
Not' available.
C;,ents per bushel,-
.cItmber of.bushels of corn equivalent in value to 100 pounds of live hogs,
I;Bureau of L-tr Statistics, converted to 1924-29 base.
IAtarea- of Agcultural Economics, 1924-29 = 100.


..:.. ? .:. .1 .5-
S15 -
Zd i took prices per 100 pounds (except where noted) by species,
August 19.-2, with cooarpaisons
; ." ". 191 : t 19 42
ta e auaul :192i- 1940 3:941 June July August
': .3. 1 ,ol. I D Dol. Dl Dol. Do. Dl. *.

t steers sold out of first :
pa- at Chicago:


...*B;.^T*^F. *.." ^^7


13.71 10.73 12.41 14.45 14.30 14.S'8


;.. ..






Wool: Mill consumption and machine activity, United Statee e
selected periods, 1940-42

Si gte eekly aver e:
Item : 2 : Jan.*-Julyl1I JulJy t June uuJ
S1940 1 91 1941 1942 :l9 4l. 2/ 9 11:2/ 19

S1,000.oo ,ob 1,Q00 1,000 1,000 1,000 "lT


:pounds PUids
Mill consumption 2
(revised. basi) 4/
Grease basis 2/
Apparel wool- I 639,618 967,685
Domestic .........:; 4 i6, 56 493,934
Foreign
(duty paid) ......: 152,862' 473,751
Carpet wool-
Foreign
(duty free) ...... 138,746 199,453
Scoured basis
Apparel wool ......: 309,163 509,014
Carpet wool o...... L 18,9?J1
q ," __ _


iny pounds pond Ipomnds


547,638 610,344 17,513
261,284 277,242 8,088

286,354 333,102 9,425


115,575 39,997 3,329
291,213 327,752 9,321
80. 06 23.432 g2,293
Weekly average in bours


19.783 21..55
8,698 10,541

ll,oS5 11,07i1

1,150 1,030

10,702 11,46'
85 .Jp


Machine activity
Hours per available
machine
Worsted combs .....
Bradford .........
Fronch ,..........
Worsted spina.ies ..
Woolen spindles ...:
Worsted and
woolen looms
Brood ...........
Narro ,.........
Caroet and rug
looms
Broad ..........,
Narrow .........:


551l
43.5
79.4
37.7
43.2


39.0
13.6


37.9
21.9


86.7
74.9
110.6
61.o
63.8

6l.4
31-W7

50.8
30.3


85.0
72.2
111.4
58.7
60.7


59.1
28.7


49.5
30.3


92.0
79.2
116.5
58.4
74.1


71.3
35.0


4.;l
24.9


83.6
72.1
106.9
6o 3
60.3
83.6


59.6
32.8


45.5
27.7


90.1
77.2
114.8
59c7
72.7

69.9
32.6


39.5
21.2


92,5.
79. 1
-.4J
1164
63.1
S77..2,|
".C

31.5


24 g


Compiled from rbro--ts ",f the .ilreaaL of the Census.
If The January-.luly period covers 31 weeks in 1941 and 30 weeks in 1942, hence *Mf.i
totals are not cnoparablo.
5-week period. ::
4-/ weel: per: ~1 :
New basis adopted by the Bureau of the Census in January 1942. Apparel wool
includes all dLmo ic wools and all duty paid foreign wools. Carpet wool includes.
only foreign wools encroed free of duty for the manufacture of floor covering$ presi
cloth, knit or felt bool-s or lunbe-r.:cns socks. In this table data for 1940 and.
1941 have been adjiist.1 to tie new basis,
T/ Total of shorn ani pulled wool. Pulled wool, grease basis, is in condition.
received from pulleries and is mostly washed.

E"EE= qE=f




.. ,i.i ,,..S .' ; :' "' :.i. .




:- theo nited Stat, s


I tem.



i: "oston narklet-
Territor:-, scoured tasis-
64s, 7,.1, 0- ."'in" stenle
combin' *... e .. .. .... ....,
: 56s (38 blo. ) co;.*-ing ........:
S46s (lov 1/'4 bljod) .. ........ .
'Bright fleecs, frreas- :
64s, 70s, "s (fine) delaine ....:
S 50s (3 blooL) cobling .......
46s (lo-. 1/4 .blood) ........ ,.:
Foreign wool in b:nrd
t Dos on 1
S Sydney; sco.reu baris
6t' 4s, 70, go c6r'bing .........
SCape :ecotur basi:
12 nonthG, -'onhin a ...........*.:
SIontevideo gras3 b3si. -
S l.rins (60-13) ..............
*1s (l5 s) 1d.............. ........
Prices received Ly farr.-er,
greacs brtSis, 15th of month ....:

Text-ile fibers:
Hool, territor- fine Gtal 2/ .:
Cotton, 15/16"' idetlirg / .....:
Rayon yarr, 150 dor.ier 4,..... :
SRaycn ctaple fiber 5/ :
i Vise-..e 1-1/2 deniEr *.........:
Acetate 5 denier ............:


- 17 -


irnd oticr textile rwvr natnrials in
elected periodC, 193C-42


.:-e ar, : 19, L: i 4L
.. I1.,0 1l4.1 Au.0.- June' July Aug.

Ce;.t; Ce 1ts Cents Ce.ts Ca'.ts Cents Ccnto


82.7
69.3
62.6

32.9
36.2









26.1
28.3

22.3


82.7
9.30
51.6

25.0
46.0


913.3 10.'.S


107.0 120.9 119.0


79.7 91.2 0O.4 10-.5 104.5
7-.1 S2.3 S;.4 91.5 91.5


32.0
41.2
41.0


43.1
46.5
46.5


67.9 72.7


42.0
45.
48.0


4'.0
49.0
4P.5


47.0
49.2
49.3


119.0
101.5
91.5

47.0
50.0
4r(11 S)


70.3 79.0 79.0 79.0


e.9 7 '.9 62.C 7C.5 76.5


76.5


J1..2 -10.4 -11.0 4 ,0 43.0 43.0
32.4 3'.6 3 .5 42. 42 4. 2.2


22.3 33.5 35.3 39.7 39.2


96.3 108.8
10.17 13.92
53.0 53.6


107.0 120.9
16.14 18.94
53.0 55.0


25.0 25.0 25.0 25.0
43.0 43.0 43.0 43.0


113.0
1.4212
55.0

25.0
43.0


39.4


119.0
!,.37
IP. 57
55.0

25.0
43.0


Compiled from reports of the Ar-iciulttra?. i.h.ri:-tin.: Ailb:Listration except as
Otherwise n~oted.
i:;/ Before pay .ent of dut,'. Compiled fronI thie Poston Coi m;rcial B~lletin.
Z Scoured basi-, Soston market.
M Average: at 10 rarkjts.
DomeFtic y.rn, first quality., Btrau of LabI Statistic.
F.o.b. producing plrrnts, Bureau of Labor St-tistics.





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