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Federal Reserve Bank of Chicago --June 25, 1954

IT HAS BEEN KNOWN for some time that
farmers are stepping up their production of hogs, but
there has been great uncertainty as to just how large
the increase is. Additional data was made available
this week by the USDA following a survey of about
143,000 farmers.
The spring pig crop-- pigs born between December 1 and June 1-- is about 13 per cent larger
than last year. The increase in District states is
close to the U.S. average.
The seasonal pattern of farrowings was quite
different from last year. March and April, of course,
are always the peak months and together account for
nearly 60 per cent of the spring pig crop. The
biggest difference from last year's farrowings was in
February which accounted for about 17 per cent of
the total spring pig crop this year, compared with
14 per cent last year. Hence, nearly 10 million pigs
were farrowed in February, compared with a little
over 7 million last year. The number of sows farrowing and per cent change from last year were:
December _ _ _ _ _ 274,000
_ 515,000
January _
February _ _ _ _ _ 1,410,000
March _ _ _ _ _ _ _ 2,428,000
2,213,000
April _ _ _ _ _
1,288,000
May

+25%
+17
+34
+15
0
+2

21
Number 254
last year. For District states the indicated increases
are as follows: Illinois, +15; Indiana, +17; Iowa, +10;
Michigan, +5; Wisconsin, +12. This would bring the
total 1954 pig crop to about 91 million head which
would be 12 per cent larger than last year but still
slightly below the average of the past ten years.
PIGS RAISED
million head
100
total
80
60 —

spring pigs
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40
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fall

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pigs

20
Assuming the February pigs are "full fed" for
an early market, as farmers attempt to get them sold
before prices go down sharply, there would be an
early and larger than usual increase in the number
of hogs showing up at markets this summer-- probably
beginning in late July and continuing through August.
Thus, the fall- winter decline in prices is expected
to show up earlier than is usual and to be quite sharp.
April and May farrowings on the other hand,
were only nominally larger than last year. This suggests that after hog prices decline seasonally they
may be fairly stable at the reduced level. The more
uniform distribution of farrowings through the spring
months can be expected to bring a better distribution
of marketings during the last half of the year.
MARKETINGS of hogs in the next month or so
may be below the year-ago level. The number of hogs
over six months old on farms June 1 totaled 7 per
cent less than on June 1 last year. This reflects
the smaller number of pigs raised during the last half
of 1953, and since sows held for fall farrowing represent a larger proportion of the June 1 inventory than
last year, the marketable supply of hogs over six
months old is probably more than 7 per cent smaller
than last year. This deficiency could be largely offset by the early farrowed spring pigs if they are
"hurried to market" at light weights.
THE FALL CROP, pigs born June 1 to becember 1, as indicated by farmers' intentions in early
June, will show about a 10 per cent increase over

0
1944

'46

'48

'50

'52

'54

HOG PRICES—BARROWS AND GILTS AT CHICAGO
dollars per cwt.
24

20

16
Fz.

1944
28-

'46

'48

'50

'52

'54

0%
0

1954

24

se

1953

rmar

june

sept

dec

Research Department