
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, June 30, 1994                   TAG: 9407010007
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

CATTLE PRICES CONTINUE TO DROP

The lowest beef cattle prices in six years led to a 2.1 percent drop in the prices farmers received for their products from May to June, the Agriculture Department reported Wednesday.

The prices were 0.7 percent lower than in June 1993.

Beef cattle prices have been dropping steadily. In June, they reached $63.60 a hundredweight, the lowest since July 1988. Prices were $67.20 in May and $74.50 last June.

The overall meat index for June was 4 percent below a month ago, and 14 percent below June 1993.

Cattle have been jamming slaughterhouses. Last week, the department reported record red meat production in May.

The glut has meant lower feedlot prices, with some producers reporting losses of more than $100 on each slaughter steer.

Economists generally believe consumers will encounter beef specials rather than steady price declines at the supermarket. Retailers want to wait out the market before setting prices too low.

Wednesday's report also cited lower prices for cotton, hay and wheat than in the previous month. Prices increased for tomatoes, corn, lemons and sorghum.

Compared with June 1993, price decreases for cattle, hogs, calves and eggs more than offset price increases for corn, soybeans, wheat and oranges.

Cotton, at 60.7 cents a pound, dropped 13 percent from the previous month but was still 12 percent higher than a year ago. New crop production was projected to reach a near record 17.7 million bales.

Tomatoes caused an increase in the commercial vegetable index because of good demand for the early summer crop. Prices were $35.30 per hundredweight, compared with $20.60 a month earlier and $23.50 a year earlier.

by CNB