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Number 'Ll'}



- Wednesday^ February .27, 1992

Federal.Reserve Bank of Dallas
The U5DA announced la s t week That the loan rate for 1992-crop Middling
7 / 8-in ch cotton w ill average not less than 3 0 . 91" cents per poundT""The” ! 951 -crop
average loan rate for Middling 7/8-inch cotton was 30.U6 cents per pound. On
the basis of price d iffe r e n tia ls between grades th is season i t is expected that
the average loan for Middling l9/l6-inch cotton from the 1992 crop w ill be above
32 cents, compared with 31* 71 for the 1991 crop.
Spot cotton markets rose la s t week and early th is week, p a rtly on the
strength of a "slight pickup in m ill and export 'buying. Middling lp / l 6-ir c h cotton
on the D allas Cotton Exchange closed Monday, February 2.9, at 1*0.39 cents per
pound, compared with 39.29 a week e a r lie r . However, the market reacted downward
on Tuesday under influence ..of declines in secu rities and grains and reports of
rains in Texas. Middling 19/ l 6- inch cotton on the Dallas market closed at
39 .70 cen ts, o ff 69 points from the previous day.
Domestic m ill consumption of cotton increased seasonally during January
but was su b sta n tia lly "below January 1991, according to the Bureau of the Census.
During the f i r s t 6 months' (August-January) th is season about 1*,707,000 bales were
consumed, compared with 9 , 19*9,000 in the corresponding period a year e a r lie r .
On a d a ily rate basis, consumption in the f i r s t h a lf of the current season is
down 10% from a year ago.
* Spot prices of most grains have been declining .for the past week or more.
Rather sharp price drops reported th is week are attributed to improved weather
conditions in the Southwest, as they a ffe c t the winter grain crops; a lso ,, farmers
are offerin g larger quantities of th e ir surplus -wheat. Export of domestic grains
is slow, while the domestic flou r business is q u iet.
On Tuesday, February 26, No. 1 hard wheat sold in Fort Worth at
$2.72-3A per bushel - 3 cents under a week e a r lie r 5 No. 2 y ello w corn brought
$2.08 - down 1* cen ts; No, 2 white corn at $2.28-1/1* was o ff IjFT/U- cents; No. 2
yellow milo sold at 0 3 .1 1 peF cwt. - 2 cents lower.
G'rain sorghum planting has started in the Coastal Bend and corn planting
is expected to sta rt in soiIlFc*entral Texas as soon as so ils dry.
Hog prices on the Fort Worth market dropped la s t week to the lowest
level since'"April 1990. On Thursday, February 21, most Choice 180-279 lb s .
sold for $17.90, a few lo ts at $17.79* Prices were s lig h tly higher on Tuesday
of this week, with the bulk of offerings s e llin g at $18.00-18*29* However, the
market is described in reports as being- ngenerally slow ."
C a ttle prices are uneven th is week. Good and Choice fed steers and
yearlings brought $30.00-31*.00, and Common, P la in , and Medium sorts sold for
$22.00-29.00 on Tuesday of th is week. Hovrever, c a ttle receipts are li g h t .
Sheep and lamb prices are steady th is week. Good and Choice shorn
fat lambs with NoT'2—p elts sold in Fort Worth Tuesday for $29.90, and Good
shorn feeder lambs cashed at $ 29 . 00 .
Goat sales on the San Antonio market la s t week were at generally steady

Number 113

Wednesday, February 27, 1932
Page 2

The increase of 2% in numbers of c a ttle and calves on Texas farms and
ranches on January 1, 1932, as compared w itE ra year•e a r lie r , was reported la s t
week. Additional information provided la te r by the BAE o ffic e in Austin shows
that there were increases in numbers of c a ttle and calves on farms in east Texas
and along the Upper Coast which more than o ffse t decreased c a ttle inventories in
southern and western ranching areas. Droughty conditions and lack of range feed
forced a sharp reduction of herds in the Plateau, Trans-Pecos, and southern
Unless droughty conditions force widespread liq u id a tio n , the 13% increase
over a year ea rlie r in number of yearling heifers points to increased numbers of
breeding stock during the coming year.
A N D . 1i 0 H A I R
On February 20 the USDA announced that the price support program on ■
shorn wool in 1932 w ill operate through a loan program rather than through a
purchase program as in recent years. The average le v e l of support had been
announced~previou sly at 90% of p a rity . Dollars-and-cents support prices w ill
be announced about A pril 1 when the wool marketing year for price support
purposes begins. Price of pulled wool w ill Continue to be supported through
purchases. The new price support program for shorn wool, lik e previous programs,
requires that to be e lig ib le for loan the t i t l e of shorn wool must rest with-the
producer. The wool must be placed in an approved warehouse and must be in a
merchantable condition.
The PMA reports that a f a ir sized quantity of good French combing length,
12-months Texas wool sold la s t week at an estimated clean price of around Gl.%9
per pound.
Approximately 1 m illion pounds of mohair had been contracted in Texas
up to la s t week at $ 1 . 01 - 1 /2 for adult and $ 1 . 26- 1 /2 for kid mohair.
Business conditions remained stagnant la s t week in the Boston wool
Wool production in the U., S . , both shorn and pu lled , is expected to
be somewhaTTlarger in 1952 than "in 1931. This expectation is based on the
increase' in tne number of' stock sheep on farms which took place la s t year.
Preliminary figures on wool developments in 19,31 show th a t, as compared with
19%0, domestic consumption""o f "apparel wool was o ff 12%, while consumption of
carpet wool was down" i|8%. Imports of apparel wool were up 10%; imports of
carpet wool were down more than -80%.
Texas poultry markets th is week are holding about steady, prices paid
for b ro ile rs and fryers In" South Texas are reported by the Texas State Department
of Agriculture at 30 cents for a l l weights; East Texas, 27-29, mostly 28; Waco
and Corsicana area, 20-29, mostly 28,
Texas commercial hatcheries produced 7.3 m illio n chicks during January,
according to la s t week’ s BAE report on hatchery production. This was about
33% more than during the same month a year* ago". "About 7'/% of the January output
was'commercial b ro ile r ch ick s. Demand fo r b ro iler chicks has been strong, says
BAE, while demand for farm flo c k chicks has not picked up as sharply as may be
W. 15. P r it c h e t t
Agricultural Economist