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Federal Reserve Bank of Chicago - -

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gric

October 27, 1961

AS THE WEATHER CHANGES from summer to fall,
farm acti‘iities take on a new flavor. In the Corn Belt
the pace of activity begins to quicken as crops mature
and farmers begin comparing notes on yields and deciding whether to sell crops now, store for sale on a
later market or feed to livestock. At the same time,
ranchers in the West are rounding up, selling and shipping feeder cattle. However, weather conditions vary
from one year to the next and this together with the flexibility of most livestock operations bring significantly
different _ actions in even heavily seasonal activities.
Thus, each new feeding year provides a unique
experience for the cattle feeding operation and two
notable differences are apparent this year. First, prices
of feeder steers reached a seasonal price low in July and
have been above last year's levels since August. This
is in contrast with lows in October last year and in
December 1959. Second, 'shipments of feeder cattle
were somewhat higher earlier this fall than in 1960 but
somewhat smaller than in 1959.

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tter
Number 630
FEEDER CATTLE AND CALVES RECEIVED
8 Corn Belt States
thousand head
1,400
1961
IMO OD INN MID

1,200

- 1960
- 19593z DEPT, OF AGRICULTLIZE.

1,000

LIBRAFY

NOV,6 1981

800

SZRIAL RECORV

600
400

4.110

•
•
•••ft
I

I

Mar.

FEEDER STEER PRICES
average of good and choice 500-800 lb.
at Kansas City

June

Sept.

Dec.

Shipments of feeder cattle into eight North Central
states in October dropped 7 per cent below last year
bringing the total since midyear within 2 per cent of the
1960 total. In the three months of July, August and
September, the three western Corn Belt states of Iowa,
South Dakota and Nebraska reported an increase in
total shipments of more than 20 per cent—enough to offset the decline in the other states.

dollars per cwt.
31

29

Cattle on Feed by Weight

October 1
1960
1961

27

Per cent
change

(thousand head)
25

Mar.

•

June

Sept.

Dec.

One important element in the strength of feeder
cattle prices last fall and again this summer and fall
has been the excellent conditions in the southwestern
wheat areas. With the necessity of removing any lush
growth of wheat pasture in the fall to obtain maximum
yields the following year, wheat farmers can afford to
outbid the Corn Belt feeder for stocker cattle. An additional factor this year is that wheat acreage does not
have to be reduced for compliance with the new program
until late next spring, therefore, wheat growers may
graze all available wheat pasture during the winter.

315
Under 500 pounds
991
500-699 pounds
1,767
700-899 pounds
1,690
900-1,099 pounds
364
1,100 pounds and over • •
5,127
Total, 26 states

372
1,039
2,001
1,785
354
5,551

+18
+5
+13
+6
—3
+8

Cattle on feed on October 1 provide a clue to
marketings and prices of fed cattle in the months ahead.
Since there is only a 4 per cent increase in cattle
weighing over 900 pounds in feed lots compared with
year earlier, prices of fed cattle may strengthen into the
early winter. However, a 13 per cent increase in the
number of cattle on feed weighing 700 to 899 pounds
would indicate large marketings and pressure on fed
cattle prices in the late winter and early spring.
Research Department