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--~~~~------Wednesd~, March 29, 1950

Federal Reserve Bank of Dallas

C0 TT0 N

Spot cotton price~ held more or iess steady last week; the ten market
average price for Middling 15/16 inch staple on Tuesday, March 28, was 31.80 cents
per pound as C('1pared with 31078 cents a week ago. The comparable price on the
Dallas Cotton E. {:change was 31.40~
- - -Spot -market inquiries were more numerous last week but sales decreased
slightly, according -to the PfvIA. Export demand improved. Domestic mill demand
continued slow.
---- - - Cotton exports for the season through last week totaled J,365,000 bales
vs. 2,838,000 for-· the8ame period last season.
The CCC reports that loans on 1949 cotton from the first of the season
through March 16 totaled 2,142,000 bales0ompared with 4,869,000 to the same
date last season. During the week ended March 16, loan entries amounted to 12,076
bales, while repossessions reached 92, 279 bales.
-- ---Tradingin loan-equities was less active last ~ieek than in other recent
weeks and equity prices-werecio~m.-to about $2 per bale.
The cotton acreage revision bill finally passed the Senate last week by
a vote of 38 to 31 and was sent to the President for his signature. It is reported
that the bill will add 1,1.50,000 acres to the national allotment of 21,000,000
acres and that Texas farmers will receive about 600,000 acres of the increase.
In western f ,_ Ka"Sand Oklahoma, dry weather has about stopped all dry land
preparation for cotton planting. Dust storms are blowing from the north and south.
In the Coastal Bend and Valley areas of Texas, conditions are not as
favorable as they normally are at this time of the year. Most of these areas need
moisture and the infestations of thrips are heavy. Some cotton has been destroyed
and other fields are damaged. - - - - - - - - American Egyptian cotton ginned this season averaged slightly lower in
grade and a little shorter
staple length than last season. Less than 6 percent
of this season's total ginnings were in the lengths 1-9/16 inch and longer, compared with over 9 percent last year,
ECA authorizations last week included $12 million to France and $4 million
to Korea to bu~r U. S. cotton.
Grants for American wheat and flour accounted for nearly half the
$35,377 ,oooii1new ,foreign aidannounced March 28 by the ECA. Of that amount
AUstria has been granted .':P? ,557 ,ooo for the purchase of wheat and $1,026,000 for
wheat flour; Germany, $5,117,000 for 1Nheat and ~662,000 for rye; Portugal, $3,472,ax>
for wheat and $110,000 for wheat flour; and Ireland, $3 million for corn.
The CCC has announced the approval of a contract to exchange cotton for
a strategic material in a barter deal under its authority to accept such materials
produced abroad in exchange for agricultural commodities acquired by the Corporation. Details of the contract were not disclosed.


Wheat prices on the Fort Worth Grain and Cotton Exchange continue to
advance. No. 1 hard wheat sold as high as:~2!'52 per bushel on Tuesday, March 28.
On "thesame date, prices of o"ats were up 1-1/4 cents per bushel as compared with
a week earlier; grain sorghums were off 3 cents per cwt. Prices paid for barley
and corn showed no significant net change.
CCC purchasr· of wheat for the period July-March 17 totaled over 51
rni_llion bushelS.-Pur: ·.· flour represented the equivalent of over 5. 5
mj_llion bushels of wheat?
- - ---

Wedn~sday, March 29, 1950
Number 13
The wheat crop in the Texas Panhandle continues to deteriorate as a
result of the droughty conditionsand green bug infest.ations. Some farmers are
plowing up their wheat crop ~hile others have turned their fields into pastures.
A joint report just issued by the USDA and the Oklahoma Agricultural
Experiment Station indicates that green bugs in small grains can be contr-olled
by sprays or dusts containing parathion applied fromairplanesor ground equipment.
CCC purchases of grain sorghums for the period July-March 17 totaled
almost 1.5 million bushelso-- - - - Rice markets held about unchanged during the week ended March 20, according to the USDA-.- Since the first of August, approximately 7,332,000 bags of milled
southern rice have been shipped to domestic distributors, 822,000 to the U. s.
territories, and 4,414,000 into export channels.

1 I VE S T 0 CK
Livestock prices on the Fort Worth market last week reflected the general
weakening of the hog market and some strengthening of the demand for cattle.---At weekrs-end, hog prices were-at°"""'the lowest level since mid-January,
with a top price of $16 . 2~er cwt. This was $5.00 per cwt. below a year ago.
The lamb marl:et last week was mixed. Prices of shorn fat lambs dropped
slightly, to a top price of ~~25. 00 per cwt., ·while spring lambs were up about $1. 00
per cwt., or to a top price of $28.oo.
Wool trading Vt!a.S slow in Texas and in Boston last week, but prices held
firm, according to the PMA.
Boston business showed no improvement over the previous week, but some
good 12-month Texas wools sold at $1.60 to $1.65 a pound, clean basis, "1Ahile less
desirable lots ~Bnt at prices ranging about 5 cents lower.
In the mohair trade, business was very slow in Texas last week. Some
woolen mills in 'i os ton werereported sampling mohair' and a small volume of adult
mohair sold at Boston for 75 cents a pound.
Foreign wool markets continued to show strong trends,


P 0 U1 T R Y



Prices paid by Dallas ~holesalers to farmers and other producers for
poultry and eggs held steady last week, maintaining the gains of the previous weekQ
The principal exception to the recent advance in poultry prices was in
the price of turkeys. No. 1 turkey hens are bringing 30 cents per pound, unchanged
· for the last three months.

C 0 MM E R C I A L V E G E T A B 1 E S
Progress of Texas-coinmercial vegetables was mostly satisfactory the first
half of March, the principal exceptions being potatoes that were further blighted
and some onions that were affected by thrips, blight, and dry weather.
Shipment of spring-crop potatoes began about mid-March and has been expanded rapidly as harve -- t progressea-;-Shipments of ll1ions ·from the Rio Grande Valley and the Raymondville
section have been lighter-than was e;~~ected because of the severely deµressed onion
Texas beet crops are in good condition and supplies are plentiful. Most
,.,..,. the shipments have -continued to come from the irrigated areas. There has been



Wednesday, March 29, 1950
Page 3

some abandonment of beet fields in the Coastal Bend non-irrigated areas because of
unfavorable market outlets.
Supplies of Texas cabbage have been plentiful in recent weeks and crops
are in good condition, except th~dry weather has caused some lowering of yields
in the Coastal Bend area.
Most of the early planted cantaloupe acreage in Texas is in the irrigated
areas. The crops have had good growing weather and are well advanced.
Texas spinach production has been seriously reduced by white rust and
supplies are expected ·~ o be light for the remainder of the season.
A very good strawberry crop is being harvested in Texas and it is expected that, ~~th favorable weather, there will be a fair volume available through
Progress of the Texas Lower Valley tomato crop was retarded by t~o brief
cool spells and high winds, and there have been some reports of blight. However,
if blight is held under control, yields may not be seriously affected, and a good
crop ~ay be expected as prospects now point to a longer-than-usual marketing season.
MI S C E L L A N E 0 U S
The so-called cotton acreagereYision bill passed by Congress last week
provides also for an increase of about 100,000 acres in the national peanut acreage
allotment. Tex~s farmers are expected to receive an additional 48,ooo acres for
peanuts this year.
The visible supply of peanuts (farmers' stock equivalent basis) held
in coilllllercial positionS-continues at the lowest seasonal level in ten years, according to the BAE. Meanwhile, consumption of shelled edible grade peanuts. for the
season through February was 'tf'Percent above the comparable period last season.
The above-mentioned bill provides also that there are to be no price
supports for potatoes in 1951 unless farmers vote themselves under marketing quotas.
The House of Representatives last week approved the boost from
$4,750,000,000 to $6,750,000,000 in the CCC's borrowing authorityo

W. M. Pritchett
Agricultural Economist