Good News

Into the nation's stockpens last week crowded the biggest shipments of steers since World War II's end. Some had come from such drought-parched areas as Oklahoma, where ranchers could not grass-feed them any longer. But most of the shipments were moving because of a simple fact: after six years of high beef prices and bumper corn crops for feed, U.S. ranges are bulging with 88 million head of beef cattle, the greatest in history.

Did this mean that the law of supply & demand would bring prices down? Livestock prices had already taken some pretty sharp turnbles. The best steers last week were bringing only about 25-c--33 3/4-c- a Ib. on the hoof v. 29-c--37 1/2-c- a year ago. Retail prices were down, but relatively not 'as much. Spokesmen for two big chains last week predicted further drops. Said one: "There will be huge quantities of cattle coming to market within the next month or so, and we fully expect prices to go down substantially." But packers pointed out that higher freight rates and higher packinghouse wages would make it impossible to pass on all of the wholesale drops. And ranchers themselves argued that demand is apt to go right on rising with the supply. The U.S., eating 48.7 Ibs. of beef per person in 1930, last year ate 63 Ibs. in spite of high prices. With incomes high, any cut in beef prices is apt to bring a lot more buying of sirloin from people who have had to make do with hamburger. And that is apt to keep prices from falling very far.

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