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Number 125

Wednesday, May 21, 1952

Federal Reserve Bank of Dallas
Spot cotton prices f e l l below 3$~cents la s t week as rains improved the
outlook for production of cotton this year* However, the market recovered la te r in
the week, and by Tuesday of th is week was back to the highest le v els of the month.
Middling l5/l6~inch cotton was quoted on the Dallas market Tuesday at 38.95 cents
per pound, compared with a low of 37*80 cents la s t week and with a high of h i . 95
cents la s t month.
The OPS has announced suspension of price c ontrols on raw cotton and
nearly a l l t e x t ile s . However, th is had no noticeable e ffe c t on cotton p rices, since
it was already s e llin g well below OPS c e ilin g s . The order suspending controls sets
h3.?6 cents per pound for spot cotton as the point at which cotton w ill be brought
back under con trol.
The USDA has announced the mechanics of it s cottonseed price support
program as i t pertains to crushers. Crushers who participate in the program w ill
be paid from 1 5.5 0 cents to 15.5625 cents per pound for prime crude cottonseed o i l ,
basis f .o .b . buyer's tank cars at crusher's m ill, depending on lo ca tio n . The USDA
w ill also buy cottonseed'cake or meal and lin t e r s . Crushers permitted to s e ll
cottonseed supplies to the Department must purchase from producers at not less than
$66.hO per ton for basis grade (100) cottonseed f .o .b . gin point, with sp ecial
premiums and discounts for other grades,
Department prices to crushers for prime crude cottonseed o il in Texas,
Oklahoma, Arizona andTfew' Mexico w ill be 15.25 cents per pound; and the M ississippi
Valley sta te s, l9 .5 cents per pound.
Cotton exports in the f ir s t eight months of the current season - from
August through March - totaled h .6 m illion b ales, v s. 2.9 m illion in the same
months a year ago. However, i t " i s reported by the F.UA that demand for export has
dropped o ff in the past several weeks and sales have been lim ited in volume.
A fter the May 9 announcement of wheat production estimates by the USDA,
the wheat market declined, with prices of No. 1 hard wheat on the Fort Worth market
fa llin g 10 cents per bushel, or to a low of $2.65-3/14 on the llith . However, the
market strengthened la te r in the week and on Tuesday of th is week thn top price was
$2.68-l/lt, whichcompares with the May high of $2.75 on the 6th,
Prices of barley are' o ff as compared with 2 weeks ago, with No. 2 grain
quoted in Fort Worth th is week at $1.55 per bushel; the high for May is $1.63-1/2,
vs. a high of $1.70 in A p ril,
Sorghum grain has been risin g irregu larly for the past 2 months; Tuesday's
top price was $3.30 per cwt. , the highest since June 19U8,
Prices of corn and oats are showing l i t t l e sig n ific a n t change for the
month thus fa r , although market quotations th is week are s lig h tly above those of a
week ago.
The BAE reports that the corn crop in Texas made only fa ir progress la s t
week, although weekend rains improved prospects in nearly a l l areas of the S ta te .
Sorghums in the Coastal Bend and southern counties are in the boot or heading, and
the"weekend rains were tim ely.
Hog prices in Fort Worth th is week reached $22,00 per cw t., the highest
since la s t August. A month ago they were bringing $17.25. This rise is largely
seasonal and further increases may cocur.

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Spring lambs moved th is week at steady to strong p rices, with Choice and
Prime springers bringing $29.00 and $29.50.
Slaughter steers held steady th is week at $29.50 to $31-1.00, although
slaughter cows were down about $1.00, or to $22*50 top p rice . Good and Choice
slaughter calves brought $3 1 ,0 0 to $3h.50.
On the San Antonio market th is week, small lo ts of Medium Angoras and
Spanish-type goats sold at $11.00 to $11.50. Kids went at $7.25 each.
Cool season grasses and clovers matured rapidly in the past week due to
high daytime temperatures and strong winds. This caused farmers and ranchers to
step up the marketing of l ivestock before shrinkage occurred on the cured range
and"pasture feed. Recent rain s, however, w ill hasten the development of summer
grasses over the Southwest, although many southern and western counties of Texas
s t i l l need ra in .
The broiler market appears to have regained the losses sustained in late
A pril and early May, with prices back to the March le v e ls . Broilers in East Texas
th is week are bringing 26 cents per pound in a steady market5 in South Texas,
broilers are quoted at 28 cents.
Top-grade commercial fryers are s e llin g in Fort Worth th is week at 26 to
29 cents per pound - as high as they have sold since February. Heavy hens are s t i l l
quoted at 16 to 19 cents per pound, or as low as they have sold in many months.
The few turkeys offered in the Fort Worth market th is week sold at 26 to
28 cents per pound.
The Texas State Department of Agriculture reported th is week that demand
for eggs was good at most points, but only fa ir at some. Prices paid f .o .b . stations
US Grade AA large h i cents; A large 36-39 mostly 36 ; A medium 29-333 B large 31-32
mostly 3 1 9 Grade A large 3U—
36 mostly 3 h ; A medium 27-30; B large 27-30; current
receipts 27-29 mostly 28 cents.
W O O L ____A N D
While there have been no developments as yet in the wool situ ation to cause
excitement among wool growrers, there are increasing signs that a pickup in the wool
market may be developing, or is "ju st around the corner." At le a s t, that is the
opinion of many clo se ly associated with the wool business. Spot wool in New York
sold th is week at $1.53-1/2, v s. $1.36-1/2 a month agn. Fine staple te r rito ry wool
in Boston has advanced 5 cents in the past week. Department stores report that their
stocks of woolen materials and garments have declined su b stan tially, due t* continued
sales and l i t t l e restocking. Last week’ s quotations from many foreign markets
indicate a rise of 5 percent or more; the London auctions la s t week- showed price
advances of 15 to 20 percent over previous au ctio n -sellin g p rice s.
A fa ir-s iz e d lo t of origin al bag 12 months Texas wool, good French combing
length, sold la s t week at around $1,56, clean b a sis, according to the PMA. Prices
in the grease are estimated at 60 to 65 cents per pound.
Mohair sold in Texas la s t week at $1.01-1/2 for adult and $1.26-1/2 for
kid mohair at the warehouse.
Farm employment in the U .S . near the end of A pril was estimated by the BAE
at 10,083,000 workers, or 300,000 below a year e a r lie r . Farm employment in the
Southwest was down some 6 percent from a year e a r lie r .
Research Department