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FEDERAL

RESERVE

BANK

Number 136

OF

DALLAS

W e d n e s d a y , A u g u s t 6 , 1952

F A R M
P R I C E S
The in d e x o f p r i c e s r e c e i v e d b y t h e N a t i o n * s fa r m e r s a s o f m i d - J u l y r o s e
t h r e e p o i n t s fr o m m id -Ju n e t o r e a c h 295 p e r c e n t o f t h e 1910-11* a v e r a g e , a c c o r d i n g
t o t h e U n i t e d S t a t e s D e p a rtm e n t o f A g r i c u l t u r e *
T h is i s one p o i n t h i g h e r t h a n
J u l y 1 5 , 1 9 5 1 , b u t 18 p o i n t s lo w e r th a n t h e r e c o r d h i g h r e a c h e d i n F e b r u a r y 1951#
P r i c e i n c r e a s e s f o r e g g s , m i l k , h o g s , and c o m m e r c ia l t r u c k c r o p s more t h a n o f f s e t
d e c l i n e s i n p r i c e s o f b e e f c a t t l e , p o t a t o e s , c o t t o n , w h e a t , an d c a l v e s *
The in d e x o f p r i c e s p a i d b y f a r m e r s , i n c l u d i n g i n t e r e s t , t a x e s , an d fa r m
w a g e s , re m a in e d u n ch a n g e d a t 2 8 6 ,
T h i s i s f o u r p o i n t s h i g h e r t h a n a y e a r a g o an d
t h r e e p o i n t s b e lo w t h e r e c o r d h i g h r e a c h e d i n A p r i l an d May 1 9 5 2 .

COTTON
C o t t o n p r i c e s r o s e s t e a d i l y d u r in g th e week en d ed A u g u s t 1 an d on t h a t
d a te w ere 3 9 *5 5 c e n t s p e r pound f o r M i d d li n g l 5 / l 6 - i n c h s t a p l e a t D a l l a s an d 3 9 .8 5
a t New O r l e a n s ,
T h e se p r i c e s r e p r e s e n t e d a n i n c r e a s e o f 75 p o i n t s a t D a l l a s an d 25
p o i n t s a t New O r l e a n s .
The g e n e r a l to n e o f t h e m a rk e t w as s t r o n g e r , w i t h m i l l i n ­
q u i r i e s num erous an d movement o f th e new c r o p i n s o u th T e x a s r e l a t i v e l y a c t i v e .
C u r r e n t g i n n i n g s w ere b e i n g o f f e r e d f r e e l y , and s a l e s o f medium and h i g h - q u a l i t y
c o t t o n f o r b o t h n e a r b y and d e f e r r e d d e l i v e r y w ere n u m e ro u s.
E x p o r t p u r c h a s e s w e re
l a r g e l y o f lo w e r w h i t e g r a d e s f o r prom pt d e l i v e r y , and m o st s h ip m e n ts w ere f o r J a p a n .
Some g e n e r a l im pro vem en t i n t h e t e x t i l e t r a d e w as n o t e d d u r i n g t h e w e e k ,
w it h i n v e n t o r i e s b e i n g r e d u c e d t o som ew hat more d e s i r a b l e l e v e l s .
T h i s im p ro ve m e n t
i n t e x t i l e s , t o g e t h e r w i t h t h e p r o lo n g e d d r o u g h t t h r o u g h o u t t h e C o t t o n B e l t , h a s
b r o u g h t a b o u t an upw ard p r e s s u r e on p r i c e s .
M o r e o v e r , i t now a p p e a r s h i g h l y im p r o b a b le
t h a t t h e n a t i o n a l a v e r a g e y i e l d o f l i n t w i l l be ab o v e a v e r a g e .
P r iv a te fo r e c a s t s o f
th e 1952 c r o p now a r e i n t h e n e ig h b o r h o o d o f 1 6 ,OCX),000 b a l e s .
A g e n e ra l r a in
t h r o u g h o u t t h e B e l t i n A u g u s t w o u ld im p ro ve p r o s p e c t s m a t e r i a l l y .
P r o d u c tio n i n
C a l i f o r n i a i s b e i n g j e o p a r d i z e d b y s e v e r e damage t o i r r i g a t i o n p ip e l i n e s an d e q u ip ­
ment b y t h e r e c e n t e a r t h q u a k e .
I n T e x a s , t h e c o t t o n c r o p i s m a k in g f a i r t o g o o d p r o g r e s s e x c e p t i n some
s o u th e r n Low R o l l i n g P l a i n s an d a d j a c e n t H ig h P l a i n s c o u n t i e s , w here t h e d r o u g h t
h as dam aged t h e c r o p s e v e r e l y .
H a r v e s t w as b e co m in g a c t i v e i n c e n t r a l T e x a s c o u n t i e s
and w as m a k in g r a p id p r o g r e s s i n t h e Low er R i o G ra n d e V a l l e y an d C o a s t a l Bend a r e a s .
The p in k b o llw o r m h a s c a u s e d s e v e r e damage t o t h e c r o p i n t h e V a l l e y an d i n s c a t t e r e d
l o c a l i t i e s i n th e C o a s t a l B end.
T he f i n a l a v e r a g e s u p p o r t p r i c e f o r 1 9 5 2 -c r o p c o t t o n h a s b e e n a n n o u n ce d
by t h e U . S . D e p a r tm e n t o f A g r i c u l t u r e a t 3 0 .9 1 c e n t s p e r pound f o r M i d d l i n g 7 / 8 in c h u p la n d c o t t o n .
The a v e r a g e r a t e f o r M i d d li n g 1 5 / 1 6 -in c h c o t t o n i s 3 1 .9 6 c e n t s
per pound.
T h i s co m p ares w it h 3 1 .7 1 c e n t s i n e f f e c t f o r M i d d li n g l 5 / l 6 - i n c h c o t t o n
in 1951.
P r i c e s u p p o r t r a t e s w i l l v a r y a c c o r d i n g t o l o c a t i o n , g r a d e , an d s t a p l e .
P u r c h a s e a g r e e m e n ts a r e a v a i l a b l e t o p r o d u c e r s th r o u g h P r o d u c t i o n an d M a r k e t in g
A d m i n i s t r a t i o n c o u n t y c o m m it t e e s .
L I V E S T O C K
C a t t l e p r i c e s on t h e F o r t W orth L i v e s t o c k M a r k e t c o n t in u e d t o d e c l i n e d u r ­
in g t h e w eek en d ed A u g u s t 1 , a c c o r d i n g t o th e P r o d u c t io n an d M a r k e t in g A d m i n i s t r a ­
tio n .
The p r i c e w e a k n e ss was a t t r i b u t e d l a r g e l y t o h e a v y r e c e i p t s , w h ic h w ere n e a r l y

2,000 head h igh er than the previous week and U,000 h igh er than the comparable week
o f 1951.
Good and C h o ic e f e d s t e e r s an d y e a r l i n g s h e l d f a i r l y s t e a d y a t $27 t o
$ 30 , w it h a t o p o f $32 p e r c w t . , w h i le lo w e r g r a d e s w ere o f f a s much a s $1 p e r
cw t.
Cows w ere g e n e r a l l y $2 lo w e r , and t h i n , h i g h - g r a d e s t o c k e r s w ere s t e a d y t o
w eak, w ith a to p o f $ 2 7*
I n t h e c a l f m a r k e t, s l a u g h t e r c a l v e s w ere g e n e r a l l y $ 1 lo w e r f o r th e
w e e k , w h i le s t o c k e r s w ere o f f a s much a s $ 2 .
The t o p p r i c e f o r s l a u g h t e r c a l v e s
was $ 28 , w h i le t h e t o p f o r s t o c k e r s w as $ 30 .
S l a u g h t e r and f e e d e r lam bs w ere s t e a d y t o 50 c e n t s h i g h e r , w it h $28 p e r
c w t . t h e t o p f o r Good and C h o i c e s l a u g h t e r la m b s .
H p gs w ere 50 t o 75 c e n t s h i g h e r p e r c w t . , w it h a t o p o f $ 2 3 .5 0 .
The s e v e r e d r o u g h t t h a t i s p r e v a i l i n g t h r o u g h o u t t h e e n t i r e S o u t h i s
f o r c i n g h e a v y l i q u i d a t i o n o f g r a s s c a t t l e i n many a r e a s .
A n t i c i p a t i o n o f th e
l i f t i n g o f t h e em bargo on M e x ic a n c a t t l e , s c h e d u le d f o r Se p te m b e r 1 , a l s o h a s i n ­
f l u e n c e d some c a t t le m e n t o s e l l le w -g r a d e s t o c k a t t h i s t i m e .

G R A I N S
S l i g h t i n c r e a s e s w ere r e c o r d e d f o r a l l g r a i n p r i c e s on t h e F o r t W orth
G r a in and C o t t o n E x c h a n g e d u r in g t h e w eek en d ed A u g u s t 1 .
The p r o lo n g e d d r o u g h t
w h ic h i s t h r e a t e n i n g t h e p r o d u c t i o n o f f e e d c r o p s th r o u g h o u t th e N a t i o n w as t h e
m ost d o m in a n t f a c t o r i n t h e m a r k e t.
C l o s i n g p r i c e s on F r i d a y , A u g u s t 1 , w e r e :
N o . 1 h a r d w h e a t , $ 2 .5 7 p e r
b u s h e l ; N o . 2 b a r l e y , $ 1 .6 1 ; N o . 2 w h it e o a t s , $ 1 .0 8 - 1 / 2 ; N o . 2 y e l l o w c o m , $ 2 . li t ;
and N o . 2 y e l lo w g r a i n s o r g h u m s, $ 3 .3 2 p e r h u n d r e d w e ig h t .
The r i c e c r o p c o n t i n u e s t o make g e n e r a l l y s a t i s f a c t o r y p r o g r e s s , and many
m i l l s a r e a t t e m p t in g t o c o n t r a c t f o r n e w -c r o p r i c e .
G r o w e r s , h o w e v e r , a r e sho w ing
l i t t l e i n t e r e s t i n t h a t k in d o f s a l e .
The A m e r ic a n R i c e G ro w e rs C o o p e r a t i v e A s s o c ia ­
t i o n r e p o r t s t h a t 5 0 ,0 0 0 b a r r e l s o f B lu e b o n n e t and 5>000 b a r r e l s o f C e n t u r y P a tn a
s o l d r e c e n t l y a t $ 9 . 06 - 1 /2 p e r b a r r e l .
The f i n a l p r i c e s u p p o r t r a t e f o r 1 9 5 2 -c r o p r i c e h a s b een an n o u n ce d b y th e
U . S . D e p a r tm e n t o f A g r i c u l t u r e a t $ 5 .0 li p e r h u n d r e d w e ig h t .
W O O L
A N D
M O H A I R
T r a d in g i n th e B o s to n W o ol M a r k e t re m ain e d g e n e r a l l y u n ch a n g e d d u r in g th e
w eek end ed A u g u s t 1 , and p r i c e s h e ld a b o u t s t e a d y .
Good F r e n c h com b in g o r i g i n a l bag
1 2 -m o n th s T e x a s w o o l s o l d i n B o s to n a t $ 1 .6 5 t o $ 1 .6 7 p e r p o u n d , c l e a n b a s i s .
Good
8-m o n th s T e x a s w o o l s o l d a t a n e s t im a t e d c l e a n p r i c e o f $ 1 .6 0 p e r p o u n d . A s m a ll
am ount o f w o o l ch a n g e d h a n d s i n T e x a s d u r i n g t h e w e e k .
The P r o d u c t i o n and M a r k e t in g A d m i n i s t r a t i o n r e p o r t e d t h a t some m o h a ir was
c o n t r a c t e d i n T e x a s a t a p r i c e o f 92 c e n t s t o $ 1 p e r p o u n d .
P O U L T R Y
A N D
E G G S
P r i c e s w ere a b o u t s t e a d y on t h e T e x a s f r y e r an d b r o i l e r m a r k e ts f o r th e
week en d ed A u g u s t 1 .
Demand c o n t in u e d s lo w a t m o st d r e s s i n g p l a n t s b u t was f a i r
t o g o o d f o r t r u c k m o v e m e n ts. C l o s i n g p r i c e s :
S o u t h T e x a s , 31 c e n t s p e r p o u n d ;
E a s t T e x a s , m o s t l y 30 c e n t s ; and Waco a r e a , 28 t o 30 c e n t s .

Carl H. Moore
Agricultural Economist