Dairy and Poultry

Fancy Butter Scarce-Undergrade Market Irregular

During the week ending September 13 the butter market ruled steady to firm with price changes small but gradually advancing. The tone was firm on top scores and ranged from easy to steady on the lower grades. Sentiment, however, was mixed, unsettled, and inclined toward lower prices, but because of the shortage of fine butter the feeling grew that the present level of prices would be maintained with a widening in the range of prices on the various scores.

The storage situation, always of great influence, is of especial interest this year because prices at the time of storing were considerably higher than at present. From practically all angles the situation this year appears unpromising with regard to the possibility of profitably moving into trade channels the butter now held in storage. The report issued by the Bureau during the week under review, as of September 1, indicated total storage holdings of 156,232,000 lbs., the largest quantity of butter held in storage at one time since any reasonably accurate reports became available. Compared with the report of September 1, 1923, which showed 102,731,000 pounds, there remains a surplus this year over last of 53,501,000 lbs. The movement of the surplus into consuming outlets is one of the biggest tasks now confronting the butter trade. A clearer insight into the hugeness of this task is gained by the following comparison of figures showing storage holdings on the first of September and the first of May, the two dates when holdings usually reach a maximum and a minimum, and the net withdrawals from storage during that period.

The report of total U. S. storage holdings on September 1, which was issued during the week, indicated total stocks of 76,431,000 lbs., a surplus of 12,471,000 lbs. over last year. This is an increase of 10,567,000 lbs. over total holdings on August 1 and an increase in surplus of 2,445,000 pounds. This situation is expected to cause little additional concern.

The greater part of the trade are apparently of the opinion that with the rapid development in the last few years of cheese grinders and loaf-cheese makers, it will be necessary to carry a much larger stock than before and the stock so carried will not have the depressing influence upon the market that a similar stock would have had before this branch of the industry arose.

Eggs:

Receipts for week.

Week ending Sept. 13, 1924

Pounds 13, 417, 833

Previous week

Last year

Pounds 13, 813, 177 539, 180, 616 1,958, 519 1,578, 271 +380, 248

552, 598, 449

1,825, 708

1,864, 155 -38, 447 85,931, 188

85,969, 635

3,857, 465 157,090, 278 1, 452, 172 1,388, 941 +63, 231

26, 134, 874

4,398, 722 183,296, 685 2, 375, 688 1,719, 587 +656, 101 26, 118, 246 Cases 212, 001

13, 205, 284

63, 951

155,950

4,318, 540 153, 232, 813 1,298, 075 1,022, 946 +275, 129 26, 071, 643

4, 113, 536 178, 897, 963 2,488, 217 1,446, 034 +1,042, 183 25, 462, 145 Cases 204, 981

12, 993, 283 56, 784 117, 768 -60,984

Pounds 13, 339, 258

505, 830, 888 1,710, 051

3, 215, 378 -1,505, 327 50, 300, 277

4,472, 446 158, 939, 197

1, 143, 937

1, 312, 629 -168, 692 23,588, 306

4, 508, 844. 171, 501, 459 1, 538, 753 2,443, 191

-904, 438 25, 239, 782 Cases 255, 173 14, 265, 846

40, 440 143, 663

-103, 223

-91,999

3,593, 076

3,685, 075

4, 219, 261

It will be noted that among the years shown, 1919 is the only one approaching 1924 in volume of holdings on September first, and in that year the net decrease during September to April, inclusive, was also the largest. However, when one considers that if our present stock, 156,232,000 lbs., as shown above, is reduced by May 1, 1925, to the average of our May first holdings during the past five years, approximately six and one quarter million pounds, it will require a net withdrawal from storage of about 149,982,000 lbs. This is over 26,148,000 lbs. more than was drawn out during the season of 1919-1920, and in that period there was a net export balance of nine million pounds. Thus we enter into the period of the year when storage butter is used with the greatest surplus ever recorded, with the necessity, if we are to be back to normal by May first next, of moving more butter out of storage than we have ever moved in a like period.

FOREIGN SITUATION

While English markets were somewhat easier during the week under review and prices were reduced the Danish markets ruled practically unchanged, there were no unusual developments in the export situation. Shipments to England reported for the week included 800 boxes of Argentine, 684 boxes of New Zealand, and 500 tubs of American.

Prices Advance at Cheese Primary Points

Price advances at the meetings of the Wisconsin Cheese Boards September 5th and 6th were fully sustained during the week ending September 13. Trade was reported as being unusually good throughout the primary sections, as dealers were able to keep receipts clear and at the same time to obtain a good margin. The anticipated southern buying which has been adding strength to the market for some weeks developed considerably and buyers from this section were reported as operating quite freely.

Monday. Tuesday Wednesday. Thursday. Friday. Saturday.

Average for week. Previous week..

Grain

Grain Market Firm

Although the market was comparatively quiet early in the week it was strengthened materially by active export buying of wheat and grain prices advanced and closed higher in spite of a reaction on Saturday's market. Wheat prices gained about 4e for the week. The department's September I forecast of 247,000,000 bushels of spring wheat was about what had been expected and did not materially affect the market but the Canadian forecast on Saturday of 291,000,000 bushels was below expectations, while considerable frost damage was thought to have occurred since the compilation of the report. Reports on the European crop condition continued pessimistic and it was claimed that French imports would be materially larger than previous expectations. These factors overbalanced the rains reported in Argentina, and foreign markets were strong. Liberal export sales were reported. British crop authorities estimate the world crop as very little over requirements and foreign markets proved sensitive to reports of shortages. European buyers were covering their requirements more freely than they have for sometime and export sales over Wednesday night and Thursday were estimated at 7,000,000 bushels, including United States spring and winter wheat and a fair amount of Canadian. The flour demand continued good and mills bought freely.

Prices lost about 2¢ of the 6e advance for the week Saturday on the selling movement originating from an alleged report by the United States Department of Agriculture claiming that the world's wheat situation had been fully discounted at present price levels. Later this claim was attributed to the Kansas State Board of Agriculture. However, the selling had run into stop-loss orders and the rallies were not sufficient to make up for the early loss.

Soft winter wheat continued in active demand with receipts light at St. Louis. Receipts were about equal to the demand at Cincinnati where mills were buying in small lots to keep supplies up to storage capacity.

The milling demand for durum wheat improved and cash durum was in excellent demand. No. 1 amber sold 1e-8e over Duluth September, which closed Friday at $1.2834.

The corn market was firm in sympathy with wheat, with higher hog prices and cooler weather in the Corn Belt strengthening factors. Traders, however, were cautious at present price levels and profit-taking sales checked the advance. The department's September 1 forecast of 2,513,000,000 bushels was higher than private estimates, but private investigators stressed the poor condition and the prospect of a lower proportion of merchantable corn in case of an early or average frost.

The market fluctuated with weather conditions and fears of frost in the Northern States checked the decline on Saturday. Receipts of corn at primary markets were heavier than for the preceding four weeks and demand was fair. Offerings, however, were readily absorbed. The feeding demand continued light and the movement of corn was mainly to the industries. Yellow corn commanded a premium over white at most markets. The demand from the southwestern Cotton Belt territory was slack. Southwestern corn is being freely offered for new crop shipment but buyers are cautious.

The oats market was firm in spite of the continued heavy marketings, with the position of corn and good export demand the chief elements of strength. Receipts of oats at Minneapolis very nearly set a record, and the stocks at this market increased 2,950,000 bushels for the week. The heavy offerings were well absorbed with all classes of domestic buyers in the market. The demand from the South was only fair at Omaha and Kansas City and cereal mills and exporters absorbed all offerings at Milwaukee.

The rye market was very strong with heavy export sales, principally to Germany, Norway, and Denmark. The Canadian crop was estimated at 12,799,000 bushels against 23,231,000 bushels last year. The demand was active at Minneapolis with mills and exporters competing for receipts, and elevator stocks at this market decreased 310,000 bushels for the week. No. 1 and 2 rye sold largely at 1e over Minneapolis December, which closed Friday at 92346, an advance of 61⁄2¢ for the week.

The barley market was steady. Receipts were liberal at Milwaukee with a good demand from maltsters and exporters and the market was unchanged to 16 lower. Monday's receipts at Minneapolis were heavy and cash prices sagged, but demand improved later in the week and cash barley sold Friday at 70-834. Minneapolis September barley closed Friday at 82é, a gain of 2e for the week.

The demand for flax seed was good and mills bought steadily. September flax advanced 11e for the week, closing Friday at $2.31, but cash flax did not follow the full advance of the futures. The department's September 1 forecast indicated a crop of 29,000,000 bushels against 17,400,000 bushels harvested in 1923. Yields 6-20 bushels to the acre are reported and the quality of the arrivals has been uniformly good.

1,802

1,547

12

1745

1, 186

197

460

487

Receipts at

Chicago.

Minneapolis..

Duluth.

St. Louis.

2,470

Closing Prices of Grain Futurès

No report.

The Minneapolis cash market was firm in spite of heavy arrivals at Minneapolis and Duluth with cash prices closely following the advance in futures. Choice offerings were in good demand at firm premiums over futures while lower grades continued to move mainly at the futures price. Mills were in the market at Kansas City and the Northwestern mills continued to purchase high protein hard winter wheat. However, the mills have a considerable stock of wheat on hand and exporters absorbed a large proportion of the cash receipts. Export demand from the Gulf continued active relieving the congestion at Kansas City with sales for September 612-7¢ over the Chicago December, f. o. b. The marketing of hard winter wheat continued fairly heavy and exporters were buying all classes of wheat at Wichita for Gulf shipment. Shock threshing of winter wheat is about completed.

Chicago. Minneapolis. Kansas City. Winnipeg. Liverpool.

Chicago. Kansas City.

Chicago. Winnipeg.

1 March futures for Liverpool.

The tame hay crop will be half a million tons short of last year's production, 88,500,000 tons against 89,100,000 in 1923, according to the department's forecast of September 1. However, the territory including Minnesota, Iowa, Missouri, and eastward to New England, approximately the northeastern quarter of the country, shows an increase of 18% over last year's crop, while Montana and Oklahoma show slight increases. The New England crop is 90% of last year's figure, while Louisiana, Mississippi, Alabama, Georgia, and South Carolina have only two-thirds as much as the 1923 production, and other States show varying reductions.

Although the tame hay crop is smaller than last year, the timothy forecast is 11% larger, 14,873,000 tons against 12,749,000 tons harvested last year, and the increase is largely in the area having a larger tame hay crop while only a few of the other States show a material decrease.

The timothy market averaged barely steady during the week. The market was easier on all grades at Boston with the tendency toward a lower level. New hay was arriving in better condition. Receipts at New York were lighter the latter part of the week and the market closed steady after about a dollar per ton decline. Trade continued light at Philadelphia and Pittsburgh, with a practically unchanged

market. There was no demand for outside hay at Baltimore, and Richmond, as local supplies were adequate. Scanty receipts of high-grade hay helped to move supplies of ordinary hay at Cincinnati. The Chicago market continued strong on light receipts and best grades sold at a premium. Competition for good quality hay continued keen at Kansas City. Trade was light in southeastern markets as local hays were being utilized. Demand from these markets was almost entirely for high-grade hay and low-grade arrivals were difficult to move.

The alfalfa market held steady. Receivers had inquiries for a limited amount of best quality alfalfa at Chicago, with no offerings. Good alfalfa was in light supply at St. Louis. Receivers had more calls for alfalfa at Omaha, but trade at this market continued light, with mills buying very little alfalfa. Prices held steady. Low grades continued hard to move at Kansas City, but the market was steady on good quality hay with slightly improved demand from the South. Mills bought steadily and there was an active demand for good quality dairy hay while feeders took sound brown alfalfa. The market was steady at San Francisco but weaker with indications of lower prices at Los Angeles. Oregon markets were firm with good local demand and continued inquiries from California.

The prairie market was weaker. Receipts were larger at Chicago and prices declined 50¢ a ton. Demand continued active for good quality Southwestern prairie with the stockyards taking the bulk of the offerings. The market was firm at Minneapolis and St. Paul, with over half the arrivals of prairie going direct to the stockyards. Indications are that the crop of prairie in this territory will be lighter than last year's and shipments are not expected to be burdensome. The Omaha market was steady with the stockyards taking the bulk of the offerings. Inquiries through the exchange were slightly more numerous, but trade continued light. The stockyards company continued to take the bulk of the Kansas City receipts and there was a small local and shipping demand. Low-grade and damaged hay was very slow sale. Prices declined 50¢ a ton on Saturday, due to a reduction in prices paid by the stockyards.

German Hog Prices Rising, Receipts Steady

German hog prices continue to rise rapidly, according to the regular weekly cable from the Berlin office of the United States Department of Agriculture. Hogs of 220-265 pounds weight averaged $17.67 per hundred at Berlin for the week ending September 10 as compared with $16.37 for the previous week and $15.34 for the corresponding week of August. Weekly receipts of hogs are steady at about the level maintained for the past two months. Lard prices at Hamburg are steady at around $16.50 per hundred pounds, the average for the week ending September 10 being $16.56 as compared with $16.68 last week and $16.22 for the corresponding week in August. There was no change in margarine prices.

Feed

Feed Prices Hold Firm Despite Inactive Demand Principally as a result of the strength in grains, feed prices advanced to slightly higher levels during the week September 6-13, which induced quite some purchases for immediate shipments. There was also a large inquiry for future shipments, but due to the fact that the advance was not caused by any real consuming demand few sales for deferred deliveries were effected as bids were usually lower than prevailing prices.

The opinions of members of the trade as to the future trend of the market were decidedly mixed. Some thought that present values compared with corn and oats were low, while others expressed the opinion that the lack of a general demand from the important dairying sections during the transition period from the pasture season to the fall feeding season reflected fairly substantial supplies in retail dealers' hands.

In this connection it is well to bear in mind that the high prices of grains, which are a material help to the grain-growing farmer, are a distinct disadvantage to the dairy farmer. Higher feed quotations have been the result. While on the basis of present corn and oats prices, wheat-feeds and other concentrates are quoted at reasonable figures yet they have reached a level where farmers can not afford to force their cows as long as milk prices are relatively low.

Under the circumstances farmers will feed largely home-grown grains and roughage and will get along with as little of the straight and mixed feeds as possible.

With this tendency more or less pronounced in practically all dairying sections and production of most feeds showing steady improvement it is thought quite probable that prices will work lower before the season of heavy demand arrives.

Wheat mill feeds.-Flour mills operated on a very large scale, practically at capacity, in Kansas City territory and offerings of wheat mill feeds were quite heavy. Large sales of shorts were made to Texas on the basis of $30-$30.50 per ton Kansas City and a full $1 higher for October. A fresh spurt in grains on Thursday and Friday caused holders of feed to advance their asking prices rapidly. Speculative interests did most of the buying, however, and the consuming trade failed to become interested on what at first appeared to be a runaway market. With a reaction in grains on Saturday the prices of feeds also became less firm and quotations were a shade easier than the day before. All through the week it was evident that the market was largely a speculative proposition and that any change in grains was promptly reflected in feed prices. An outstanding feature in the situation was that not for quite sometime past have the mills been so generally disinclined to place future offerings of feed on the market. For the most part mills have confined themselves to offerings for prompt and 30-day shipment only and very little feed has been sold for shipment beyond October, although flour bookings have been made in liberal volume up to the first of the year. It is, therefore, evident that mills expect higher prices to prevail in November

and December than can be realized at present. Bran prices were nervous and middlings followed the erratic bran fluctuations closely, but the heavy feeds stayed firm at the top of the previous range. Stocks, especially those in storage, were heavy. Cottonseesd cake and meal.-There was a broad absorption of cottonseed cake and meal offerings, both by feeders and mixers. Europe too bought rather heavily which tended to firm up prices, especially for prompt and quick shipment. As long as Europe is in the market, sudden and perhaps violent fluctuations in prices may be witnessed. The output of southern mills was heavy, with the production of southwestern mills especially large. September, October, November, and December shipments were quoted at the same prices. Interior supplies were generally believed to be fair, while stocks at mills were somewhat larger than usual at this time of the year. Hulls were in liberal supply. They were in good request in the Southeast at about $13 per ton loose, $16 per ton sacked.

Linseed meal and cake.-Linseed meal and cake prices were unchanged from last week. The export demand for these feeds has been sufficient to keep the surplus production off the market. Mills indicated a steady increase in output. During the next week or 10 days quite a good many additional mills will commence crushing and within two weeks it is expected that mills in the Northwest will be operating at maximum capacity. Several large shipments of flax from the Northwest are expected in Toledo and Buffalo in the next week or two. The consuming demand showed a slight improvement in the Northwest. Several good sized lots of 34 per cent meal were sold to speculative interests during the early part of the week at $42.50 Minneapolis. In the Northeast demand and offerings were light.

Gluten feed. There was a fair inquiry for October and more deferred future shipment but very little demand for transit and near-by shipment. Offerings were extremely liberal and with consumption not keeping up with production, resellers were at times forced to dispose of transit or track feed at discounts from mill prices. The mills held their prices firm and the guarantee against loss due to price reduction, if any, on date of arrival remained effective. Stocks were heavy and interior supplies were generally believed by the trade to be quite ample. Gluten meal was in good supply at $52.80 sacked Chicago basis. The movement was heavy.

Hominy feed.-While hominy feed was quoted at several dollars per ton less than corn, the demand for this feed was very slow. Offerings were liberal, especially by the mills which seemed anxious to obtain near-by business.

Alfalfa meal.—Alfalfa meal was available in liberal supply. Reflecting an improved demand from the feeding trade the inquiries from commercial mixers were substantially better. High blackstrap molasses prices, however, still have a tendency to check sales to mixers. More interest was displayed in the distant positions with sales for November-December shipment at about $1 per ton over spot basis. The No. 2 grade of meal sold nearer a parity with the No. 1 meal than it has for some time. Present indications point to firm prices for this feed, for the next few weeks at least, as hay growers are holding their hay at higher prices and advance their quotations at any indication of an increased demand. Production and the movement were heavy.