i@ 0 21,71. 30 0 25,00 GAg6 )[email protected]? 2540 '2 0 25,30 7 0 25,20 6@ 25,15 25,10- 7 24,7$ 0@ 24,10 '7 © 24,7s 0@ 24.10 14th year no. 27 September 3, 1968 as p 18,50 18,10 35 @, 18,10 5 ing to the supply of fed beef. 18,00 Pork production this fall al- 0(a 18,00 7@ USDA Fear Of Heavy so is expected to be seasonally 17,75 10 higher from a year ago. 17,60 5@ 17,60 So far this year fed cattle 10 p Fall Marketings prices have been higher than in 17,50 i0 1967 despite an increase of about 17,10 This fall's slaughter marketpace the demand. 4 per cent in sales. Choice steers 17,10 There was 8 percent more cat - 7@ of fed cattle is expected to con- at Chicago averaged $27.25 a 16,60 cattle being fattened in feedlots 30 p tinue "very large" and could be hundred pounds the first half of 16,60 accompanied by weaker prices,on July 1 than a year earlier,1968, about $2 more than a year 20 p 16,30 the department said. These cat- :5@ the Department of Agriculture earlier, the department said. 16,10 says. tleusually comprise about 60 Total cattle numbers appear 0 p 16,00 percent of the supply for slaugh- 50 p Though stronger consumer to be holding steady, around the 15,70 -Two, Loads OfCattle demand has helped hold the ter in the fall. 108,800,000 estimatedowJanu- 0 @ 15,60 Jesse Tolman of Westmoreland hauled two loads price line this summer, the de- In addition, as the departmentary 1. This year's calfclap,how- @ 222,50 of cattle in the G&G area last week. When this pic- partment said in August live-has noted before, feeders areever, is estimated at 1 percent @ 211,00 stock outlook, increased sales in atpresent shipping cattleto above 1967. -@ ture was taken there was a drizzle of rain, and Tolman 202,50 was loading to take cattle back to Westmoreland. a few months could notout- market at heavier weights, add - Hog slaughter this summer is - @ 097,00 about the same as a year ago.. -@ 171,00 On June 1, the number of pigs expected to reach slaughter SIGNTraders See Futures In Iced Broilers weight this summer was up The Chicago Board of Trade,the 9 billion pounds of broilers As a result, processors couldn'ttion on broiler supply and somethree percent over a year ear- lier, but the supply of pigs for ,-unhappy over badly sagging tn.- sold last year. materially alter the volume ofon the demand for chickens rel- "ding volume in grain futures, As a result, the big, integrat- their marketings until 12 weeksative to pork and beef and lev-the fall market was down about thinks it may have come up ed concerns that grow and pro- after burdensome supplies occur-els of disposable income," the 3 per cent. with a contract that will bring cess broiler chickens are show-red and prices already had fal-trader explains. "With the sea- The department said produc- larys,new life to the pits. ing great interest in the new len. sonal price swings this marketers indicate next winter's sup- contract. "This market is the Reinforcing the swings in has, a lot of speculators will be ply of hogs for slaughter will On Aug. 1, the board opened rise again over year-earlier lev- trading in iced broiler chickenbest thing that's come down chicken prices was the uncer- coming into the market soon," the road for chicken processorstainty of chain store demand. he predicts. els. On June 1 they reported Kans.futures, and there are indica- having 2 percent more sows for tions that the new contract willin a long time," says an officialOver half of all broilers are sold Of course, if the processors of Allied Mills Inc., a livestockto supermarkets and many of succeed in mastering the broiler farrowing in the June -Novem- gain popularity with the Indus-feed manufacturer with a largethese chickens are aggressive-contract as a future demand in- ber season. NIMAfi try and thespeculators, both es- Pigs born in these months will sential to a successful market. interest in broiler chickens. ly marketed at irregular inter- dicator, prices aren't likelyto About half of the annual broil- vals during price specials. Whenfluctuate as sharply as before. supply the bulk of hogs for Through a full two weeks of Nonetheless, the Board of Trade slaughter during January -June, trading, 291 contracts changed er production comes from a doz-chicken consumption varies sea- sonally(highest during the is confident the contract will 1969. Ilinalhands in the iced broiler sectionen big companies such as Ral- Lamb slaughter for the re- of the board's soybean pit. ston Purina Co., Swift & Co., summer cookout months and gain popularity. Mr. Lebeck, of Pillsbury Co., Textron Inc., Cen-lowest during the winter holi- the Board of Trade, says he isn't mainder of this year is expected That would bring the board's tral Soya Co., Armour & Co., days), the level of retail sales too concerned over the new mar- to be down from a year earlier broiler trading volume fairly and Wilson & Co. They are call-is heavily dependent on the fre-ket's modest trade volume. "The because of a 4 percent smaller close to the total 336 trades ed integrated producers becausequency of grocery store spe- pork belly market languished lamb production. Prices are ex- pected to continue above a year ir made on the Chicago Mercantile they control all aspects of their cials. for several years before it took cattle i Exchange in 1962-63, the last broiler production, from fertili- But while supermarkets can off," he observes. earlier, the department said. are'...m.mootime broiler chickenswere list-zed eggs and feed to marketing schedule chicken specials almost ed in a futures market. The Mer- the finished product. Producersat whim, the processors have to cantile exchange dropped its that have shown greatest inter-keep moving their iced birds 69 % 25,50broiler contract for lackof in-est in the new broiler contractbefore they spoil. This has left 188 @26,0terest. (But it wenton to score are those that already are fa-the processors at a disadvantage 196 @ 25,80big with contracts in frozen miliar with the workings of fu-in hard -nose bargaining with 174 % 27.90 rk bellies and live choice cat- tures markets through their the big chain stores, especially le. The Board of Tradehas be- grain 'trading. when supplies are plentiful. come a little jealous of these The processors, of course, areTheir choice, as one chain store .07@ 19,10 successes.) particularly anxious to developpoultry buyer puts it, is to "sell 19,80 the new contract into a solid 'em or smell 'em." 20 @ Warren Lebeck, executive vice 15,85 hedging market to insure their The futures contract will both i67 Dresident and secretary of the 11,80 production against price de- allow processors to "lock in" '05 @ Board of Trade, figuresthe Mer- 19,80 clines.(Indeed, the industry prices of their birds (sometimes 27 P cantile's broiler contract failed 19,75 trade group, the National Broil-even before the eggs have been 26 @ to catch interest becauseit call- 19,65 er Council, first suggested cre-laid) and to gear their produc- 04 @ ed for frozen broilers.The 19.80 ating the contract to Board of tion to anticipated demands as @ board's contractis for 25,000 597 @ 16,10 Trade officials.) In the past, expressed through the futures pounds of iced, whole, ready -to- 17,50 chicken processors didn't haveprices. 30 @ cook broilers. Icedbroilers are 24 @ 19,10 any means of forward priding, The same benefits apply to the 12,60 the major factorin the broiler 570@ industry, with the result that during someever-expanding chains of carry- 19,6° accounting for 80% of 523 @ periods of overproduction, broil-out fried chicken outlets. An of- 13.3° 110 @ er prices fell to below -cost lev-ficial of Kentucky Fried Chick- 13.0° els. In the past 30 months, broil-en Corp., Nashville, says the 15.0° New Ownership er prices have fluctuated 40% company will be using the new 17.0° from the low to the high. market in the near future. "We 17,2i A year ago, chickens were inare meeting with a brokerage 19.09 AtAbilene Ford oversupply and broilers deliver-house this week to learn more 16,23 Burns -Salisbury,Inc., Man- ed to Chicago brought 24 cents aabout the intricacies of hedging. hattan Fordfarm machinery pound wholesale; since then, theWe can't constantly change the dealer, hastaken over the loca-industry has cut back output prices on our printed menus so tion ofthe former Abilene Fordsomewhat and prices have mov-that anything which helps us TractorCo. and will be opened higher. Currently, Chicago - project and set our main cost thisweek with a parts and ser-delivered broilers are priced atitem, chickens, will certainly aid vice storeat 501 NW 2 in Abi-27 cents a pound wholesale. our operations." co. lene, Kans. By its very nature the broiler Speculators, too, are showing Don Zumbrunnwill be in industry has a sensitive price some interest. On the Board of 40 chargeof the Abilene branch,structure. First, broilers are Trade floor, a trader who al- Bob Burns,manager, announc-produced on a rigid timetable ofready has taken a speculative Wet Day ne ed.