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Number lib

Wednesday, A p r il 2 , 19?2

Federal Reserve Bank of Dallas
‘ '
F A R ;M P R I C E
I N D-B-'x E S
The index of prices received by farmers, as reported by the IJ. *S. Depart­
ment of A griculture, was at 288% of the 1910- 111 average as of March 15. This index,
which is reported at the end of each month, re fle c ts the over-all price picture for
farm products. The mid-March figure was one point "less than in February and 23
points less than in March 1951. This level is the lowest reported since December
Price increases were recorded for truck crops, f r u it , and food grains,
but these were more than o ffse t by declines in prices for dairy products and meat
The index of prices paid by farmers, including in te re st, taxes, and wage
rates, remained unchanged from February at the record high of 288% of the 1910-llj.
average. Higher prices for household furnishings, building m aterials, f e r t i li z e r ,
and tractors were o ffse t by lower prices- for feeder liv esto ck , feed, food, cloth in g,
and motor supplies. This index is now 3% higher than in March 1951.
The parity ra tio - a measure of the purchasing power of farm products remained at 100, unchanged from February. I t is 11 points below March 1951.
Middling l5/l6-inch cotton on the Dallas market was quoted at I4I.UO cents
per pound on Tuesday of th is week - up 15 points .from a week ago and nearly 2 cents
from a month ago. Cotton tra d ing continues moderately a ctiv e , with reported sales
in the 10 markets' higher th a n in most recent weeks.
The improved demand for cotton te x tile s has been an important facto r in
the recent upturn in cotton p rices. Trading has been more active in the cotton
te x tile market during the past 2 weeks, and there are reports that the volume of
sales has been the largest in several months. Prices strengthened somewhat, and
increased orders from the Army Quartermaster Corps for cotton ducks have given the
market a much stronger tone.
Disappearance of a l l kinds of cotton in the U .S. during the f i r s t 7
months of th is seasorTXAugust 1951-February 1952) is indicated at 9.5 m illion b ales.
This compares with 8.9 m illion in the corresponding 7 months of la s t season. The
increase over a year ago has been en tirely in the export trade, with exports
through February to ta lin g s lig h tly more than h m illion bales, compared with 2,6
m illion for the comparable period la s t season. Domestic consumption for the f ir s t
7 months of the current season’ is reported' at 5 .5 m illion b ales, compared with 6 .3
m illion a year e a r lie r . Total disappearance for the entire 1951-52 season may
exceed 15 m illion b ales.
Cotton planting in the Lower Rio Grande V alley is reported to be 60 to
75% complete, with not over
of the acreage up to a stand. Some additional
moisture has been received in the V alley and Coastal Bend sections during the past
few days, but additional moisture w ill be needed. I t is expected that the dead­
line date of March 31 for planting in the V alley w ill be extended.
U n o fficia l reports from Washington indicate that cotton acreage in the
Nation may f a l l short of the 28 m illion acres requested by Secretary of "Agriculture
Brannan. This prediction is based on the fa c t that f e r t iliz e r sales in the prin­
cip al cotton-producing states are running about 10% below a year ago. In past
years the volume of fe r t iliz e r sales has been a rather accurate indicator of
cotton acreage.

Page 2

Grain prices on the Fort Worth Grain and Cotton Exchange are generally
unchanged from a week ago. No. 1 hard wheat closed Tuesday, A pril 1, at $2.7!? per
bushel; No.. 2 barley at $1,70; No. 2 white oats at $ 1 .lit-3A 5 and No. 2 yellow
corn at $2.3-3-1A • Sorghum grain closed at $3*12 per cwt.
A trade report on the winter wheat' crop indicates that production may
e a sily exceed that of la s t year, but much depends upon the weather during the next
few weeks. Excessive moisture, packed s o il, and insects in the eastern part of
the Winter Wheat Belt are reducing prospects, while drought, high winds, and insects
continue to plague the crop in the West and Southwest.
Livestock prices on the Fort Worth market were steady to strong in
active trading on Tuesday of th is week. Most classes of livesto ck recovered much
of the loss registered during the previous week.
On Tuesday, A p ril 1, prices of slaughter steers were generally CO cents
higher than on Monday, with most Good steers and yearlin gs se llin g from $28.30 to
$31.30. A load of Choice steers brought $31* Medium and Good stocker steer
yearlings .sold from $26 to $31. Calves were fu lly steady, with Good to Choice
kinds s e llin g at $30 to $3U.
The ho g market was 23 to 30 cents higher than on Monday, with Choice
l80-260-lb., hogs s e llin g from $16.73 to $17.30.
Sprin g lamb prices were strong follow ing Monday*s $2.00 advance. Good
and Choice kinds sold for $29 to $30. Good and Choice shorn slaughter lambs were
quoted at $23*30 to $ 26 . 3 0 .
Prices fo r 'mature goats on the San Antonio livesto ck market were a l i t t l e
lower than la s t week, but prices for kids were unchanged. Culled-to-Medium mature
goats brought $10 to $12.30. Stocker goats sold at $12 to $12.30. Most kids sold
from $3 to $7 per head.
Prices paid for poultry and eggs on the Fort Worth market remain generally
unchanged. 0n"Tuesday of this week, top grade commercial fryers brought 23 to 27
cents per pound; light-w eight fow ls, 18 to 20 cents; heavy hens, 20 to 23 cents;
and roosters, 11 to 13 cents. Graded and candled eggs were quoted at $10.30 per
There has been l i t t l e a c tiv ity during the past week in the mohair market.
However, buyers offered 90 to 93 cents per pound for adult mohair in Texas, but
no sales were reported.

Carl H. Moore
A gricultural Economist