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Numbe r163----·



19 -~ i951

. .... Wednesday, December

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Federal Reserve Bank of·DaJ.las
A"N D p RI c ·E · supp 0 RT s
--National . . E!'oduction goals !~~ ~~)2 call f ·o r a new record-hign -level of
total crop production~ A new high level of livestock production also is expected
next year. If crop goals are reached a.nd if livestock production comes up to
expectations,'the total volume 0f agricultural commodities produ8ed in 1952 will
be about 41~ above 1951 and 49% .above the 1935-39 average.
The USDA has asked producers of feeds and cotton to make every effort
to increase production by obtaining high~~ ~~eld~- ~ the ~".~~}ab~~ _§1Cr~~geo Large
crops of corn and sorghum grains are singled out as being needed next year
The ~~.~age ~oals announced b.f ti1e USDA c ver most of the major crops"
Add t:> this the probable acreage of other crops and it is seen that U~S. farmers
will require 3 to 4 million acres more cropland than in 19510
The acreage goals for the states of the Eleventh Federal Reserve District Arizona, Louisiana, OklaEoma, New Mexico, and Texas-:- total a·Gout the
as - the-acreage planted for 1951. However, the production goals show an increase of some
15% which means more produced per acre in 1952 than in 1951 if aC' and production ["Oals are met. Whether or not this will be done will depend very la:-gely
on rainfall conditions. The production goals for the district states total substantially less than was produced in the record year 1949.
Price considerations will be basic in farmers' production plans in 1952,
says the USDA. While demand for agricu3=-tural cornmodities will be generally strong,
and farmers will be for a market based upon record-high income levels,
price support proP"rams again will be used to stimulate high-level production 0f
many--cornmodi ties-.-Prfce support programs already have been announced for a numoer .
of 1952 crops. Wheat, rice, corn, cotton, wool, soybeans, milk, and butterfat
will be supported at 90% of parity, the maximum permissible level under the
Agricultural Act of 1949~ Flaxseed will be supported at an average price of
$3. 77 a bushel, compared with $2. 65 in 195L The announced 1952 support level for
oats, barley, grain sorghums, and rye is based on 80% of parity.
Under the Defense P:coduction Act of 1950, as amended, ceiling prices
cannot be established on agricultural cotTunodi ties at less than legal minimu
prices determined by the Secretary of Agriculture. For most corn.modities the
legal -minimum· is Eari ty"

R 0 Du c TI 0 N G 0 A 1 s



C 0 T T 0 N

The spot cotton ·market was somewhat-weaker early this ·week as prices
dropped to the lowest level in
month, ·on Tuesday, December 18, Middling 15/16inch cotton in the 10 spot markets averaged 4lc23 cents per pound, vs. 42.85 a
week earli'2 r. The comparable price on the Dallas market was 41 centso
Cottonseed prices in Texas have been declining for the past several ,, eeks.
The average gin ye.rd. price last week vtas ~74 .. 50 per ton, vd. th ::?74.90 the
previous week and $77 o 90 a month ago~ 'The comparable price a year ago 1 '3.S .,_' 106. 70
per ton.


Corn prices on the Fort forth market last week advanced to the hip;hest
level in 32 years :-On December 10, Noo 2 whi t.e corn sold as hi f h as . ., 2. 67f p-erb11shel-;:hfch ?ias-(mly 9 cents under the week 1 s lo..f price for No. 1 hard ',•:heat.
Corn prices dri.fted downward dl rir. the past few days, fallin -. to .:.2. 58± per
bushel on Tuesday• Na, 2 yellow corn, at ~ 2 .. 25·1-, vras down 8 cents from a week ago.

Wednesday, December 19, 1951
Nuinbe.r 103-----···-- - - · -·-------··----·-- -----·---------·-·Page ·2
An important factot in the weaker corn market this week, according to reports,
is the tendency on the part of many traders to hold off buying corn until more
definite information is available concerning a reported standby price regulation
for corn which is said to be in the making. Corn.prices -IastweeT:were"
the probable ceilin~ and this discouragect investment demand in the corn marketso
The weakness in the corn market this week is reflected in prices of
other grains" The top price for No. 1 hard wheat at Fort ·Horth on Tuesday was
~b2 .B"Ofper-bushel - dovm 5 cents from a v,reek aeot
fJo. 2 white oats at a) l.22 per
bushel were down 4i cents11 No. 2 yellcw milo brought $3.13 per cwt. - off 2 cents.
The USDA has predicted that v.~:1eat p~oc.uction in the U .. S. in 1951, now
estimated at 994 million bushels, is lessthan is-1ikelyto be-used in this country
and exported in the 1951-52 season, and that the carry-over next July 1 will be
60 mil.lion bushels below a year earlier. However, reserves will still total about
335 million bushels.
The USJ)A foresees a more active den:and for U.S. rice in the 1951-52
season but at the same time says that'the· present acreage available for rice
production exceeds our probable long-time rice requirements, both export and
domestic, and the development of new rice a-reas does not appear to be warrantedtt
Hice markets in Texas and Louisiana held firm last week as trading became more acti ve-;--according to the PM.A. Prices of rough rice remained about

1 I VE S T0 CK

Livestock EE~~ were ~ot~ceably vie_aker in Fort Worth this week. On
Tuesday, Good .:me] Choice beef steers and heifers brought $29 ,, 00-JJ. 00 - .fv2. 00
under last week's top price. Most beef cows were of Utility grade, selling at
~s2 1. 00-24. 00, odd hearl Commercial ~24. 00-26. 00~
Cor.m1e rcial and Good slaughter ca 1 ves turned from ~~23 o 00-30. 00, a few
Choice $31 .0C-33.00.
Choice lo0-270 pound hogs d!:,18.50-19eOO, light and heavier
weights ranged from $17 ,00-18e2~
La~!::_ E_rices o.a the Fort -1·~·orth market were especially low this week, partly
because of labor trouble at one of the local packing plants" Choice 121 pound
slaughter lambs brou~ht ~28 ~00u
The USDA, in its December report on feedin?- oper~tions, says that more
cattle and lambs will be fed this winter for the v.rinterandspring market than were
fed last year.. The mov~ment of stccker and feeder cattle into the Corn Belt during
July-1Jovember war-- 12'~ above a year earlier and the second highest on recor<i
shipment of lambs to the Corn Belt states during the same period was up J0'.7b, as
compar d with a year ago.
Co unercial meat production in Texas totaled 8c:' m·_llion pC'lunds in October,
according to last-wrektSBAE report. This vrns 21o; abov ·' September and 23 1:J m0re
than in October 1950. Production durin, the first 10 months of 1951 showE.d an
in1.,rease of 2~% aver the corresponding period last year.
Li vestnck rece'.'.pts a.t For+, \forth thus far in 19)1 show increases of 9~
for cattle, 27% for calves, and 13% for h gs, as compared with a year ag0. Market ...
in~s of sheep and lambs are dovm 19%.

·y . J. Pritchett
raJ Economist

B.g "'icul t.