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FEDERAL

RESERVE

BANK

OF

DALLAS

Wednesday, August 20, 1952

N u m b e r 138

COTTON
The c o n d i t i o n o f th e c o t t o n c r o p i n t h e S o u th w e s t h a s begun t o d e t e r i o r a t e
as a r e s u l t o f e x te n d e d h o t , d r y w e a t h e r .
T h e re w ere sh o w ers l a s t week i n s c a t t e r e d
s e c t i o n s , b u t i n m o st c a s e s o n ly l i g h t r a i n was r e c e i v e d and t h e a r e a c o v e r e d was
s m a l l.
The d r y - l a n d c r o p i n p a r t s o f w e s t T e x a s i s b e g in n i n g t o w i l t , and some e x c e s s i v e
s h e d d in g i s r e p o r t e d .
The c o n d i t i o n o f i r r i g a t e d c o t t o n i s good t o e x c e l l e n t .
At
the p r e s e n t tim e t h e Lu b b o ck a r e a h a s t h e b r i g h t e s t c r o p p r o s p e c t i n w e s t T e x a s .
V a l le y fa r m e r s a r e r u s h in g h a r v e s t s o t h a t s t a l k s ca n be tu r n e d u n d e r b e f o r e S e p te m b e r
1 , i n c o m p lia n c e w i t h th e program t o com bat t h e p in k b o llw o rm .
The USDA h a s an n ou n ced t h a t g r a d e s ta n d a r d s f o r A m e rica n u p la n d c o t t o n
have been r e v i s e d .
T h e se ch a n g e s w i l l n o t become e f f e c t i v e f o r a n o t h e r y e a r , o r on
A u g u st 1 5 , 1 9 5 3 .
The r e v i s i o n w i l l a b o l i s h t h e M i d d li n g F a i r and S t r i c t Good M i d d li n g
s ta n d a r d s f o r w h it e c o t t o n and a l l s ta n d a r d s f o r e x t r a w h it e c o t t o n .
The r e m a in in g
s ta n d a r d s a r e ch a n g e d s o a s t o r e f l e c t t h e c h a r a c t e r i s t i c s o f r e c e n t c o t t o n c r o p s .
S p o t c o t t o n m a r k e ts g e n e r a l l y a r e h o l d i n g s t e a d y .

GRAINS
P r i c e s o f m o st g r a i n s on th e F o r t W orth m a rk e t r o s e l a s t w e e k .
The w e e k ’ s
c l o s i n g t o p p r i c e s and c h a n g e s from a week e a r l i e r :
N o . 1 h a r d w h e a t $ 2 .6 0 p e r b u s h e l ,
up 2 -1 / 2 c e n t s ; N o . 2 w h ite o a t s $ 1 .1 0 p e r b u s h e l , up l / 2 c e n t ; and N o . 2 y e l l o w m ilo
$ 3.5 3 p e r c w t . , up 9 c e n t s .
N e w -c r o p r i c e i s b e in g m a rk e te d i n T e x a s a t f a v o r a b l e p r i c e s .
Top q u a l i t y
C e n tu ry P a t n a s o l d l a s t week up t o $ 9 .7 7 p e r b a r r e l .
T h is v a r i e t y b e g a n m o v in g a t
a number o f T e x a s p o i n t s , and th e q u a l i t y o f th e c r o p i s f a r s u p e r i o r t o t h a t o f l a s t
y e a r , b o th i n g r a d e and m i l l i n g q u a l i t y , a c c o r d i n g t o th e A m e r ic a n R i c e G ro w ers
C o o p e r a tiv e A s s o c i a t i o n .
The A u g u s t 1 e s t im a t e o f r i c e p r o d u c t i o n i n T e x a s i s p la c e d a t 1 2 ,5 8 1 ,0 0 0
bags w h i c h , a lt h o u g h f r a c t i o n a l l y b elo w th e J u l y e s t i m a t e , i s s t i l l a r e c o r d h i g h ;
how ever, d e s p i t e r e c o r d p r o d u c t io n t h e r e p r o b a b ly w i l l be a s t r o n g m a rk e t f o r r i c e
t h i s s e a s o n a s f o r e i g n demand a p p e a r s s t r o n g ; m o st d o m e s t ic m i l l s h a v e a l a r g e b a c k ­
lo g o f f o r e i g n s a l e s a l r e a d y b o o k e d .
C o r n p r o d u c t i o n i n T e x a s i s e s t im a t e d a t l e s s t h a n 37 m i l l i o n b u s h e ls - t h e
s m a lle s t c r o p s i n c e 1 9 2 5 - and com pares w it h a r e c o r d h i g h o f 125 m i l l i o n b u s h e ls i n
1908.

LI VES TOCK
L i v e s t o c k p r i c e s i n F o r t W o rth r o s e s l i g h t l y l a s t w e e k ; a d v a n c e s o c c u r r e d
fo r m o st c l a s s e s e x c e p t h o g s .
S l a u g h t e r s t e e r s and y e a r l i n g s c l o s e d o u t t h e w eek a t
s te a d y p r i c e s , w h i le b e e f cows r o s e $ 1 .5 0 t o $ 3 , an d s t o c k e r k in d s i n c r e a s e d $1 t o
$ 1 .5 0 .
S l a u g h t e r s t e e r s and y e a r l i n g s s o l d a s h i g h a s $ 3 2 .5 0 , b u t m o s t l y i n t h e $27
to $30 r a n g e .
S l a u g h t e r c a l v e s s o l d $1 t o $ 1 .5 0 h i g h e r , r a n g i n g a s h i g h a s $ 2 8 .5 0 .
Good
and C h o i c e s t o c k e r c a l v e s a d v a n c e d $ 2 , o r a s h i g h a s $ 2 9 .5 0 .
S l a u g h t e r s p r i n g lam bs r o s e 50 c e n t s , b r i n g i n g a t o p p r i c e o f $ 2 9 .
S la u g h te r
awes to p p e d a t $ 8 , up a b o u t 50 c e n t s .
B u t c h e r h o g s w ere o f f a b o u t 25 c e n t s ; C h o ic e I 8 0 - t o - 2 b 0 - p o u n d e r s b r o u g h t
a to p o f $ 2 3 .

C o m m e rcia l m eat p r o d u c t i o n i n T e x a s i n t h e f i r s t 6 m onths o f 1952 t o t a l e d
m i l l i o n pounds - a b o u t 16 p e r c e n t more th a n d u r in g th e c o r r e s p o n d in g p e r i o d l a s t
year.
F o r th e US th e i n c r e a s e was 5 p e r c e n t .
The 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 h a s a d o p te d new g r a d e s ta n d a rd s
f o r s l a u g h t e r h o g s and h o g c a r c a s s e s .
T h e se g r a d e s w i l l become e f f e c t i v e Sep tem b er
I ? 7 1952.
The g r a d e s a r e :
C h o ic e N o . 1 , C h o ic e N o . 2 , C h o ic e N o . 3 , M ed iu m ,an d C u l l .
L i v e s t o c k p r o d u c e r s i n th e S o u th w e s t f a c e i n c r e a s i n g f e e d d i f f i c u l t i e s as
a r e s u l t o f th e c o n t in u e d d r o u g h t .
S u p p le m e n t a l f e e d i n g i s i n c r e a s i n g , w h i le t h e r e is
s t i l l a h e a v y movement o f c a t t l e , c a l v e s , and sh e e p o u t o f t h e d r y a r e a s .

h2h

W O O L
B u y in g o f f a l l T e x a s w o o ls w as r e p o r te d l a s t week a t p r i c e s r a n g in g from
$0 c e n t s t o 60 c e n t s p e r p o u n d , g r e a s e b a s i s , f . o . b . , T e x a s .
On a c l e a n b a s i s delivered
t o B o s to n t h i s was t h e e q u i v a l e n t o f a b o u t $ 1 .2 5 t o $ 1 .3 5 p e r p o u n d .
C o n t r a c t i n g f o r f a l l - c l i p m o h a ir i n T e x a s e a r l y l a s t week was a t aro u n d
9 1 -1 / 2 c e n t s f o r a d u l t an d $ 1 . 1 6 - l / 2 f o r k i d .
L a t e r , b u y e rs lo w e re d t h e i r b i d s 5 cen ts
p e r pound b u t w ere a b le t o b u y v e r y l i t t l e m o h a ir a t th e lo w e r p r i c e s .

P O U L T R Y
T e x a s f r y e r an d b r o i l e r m a rk e ts w ere s t e a d y t o f i r m l a s t w e e k , w it h p r i c e s
u n ch a n g e d t o 2 c e n t s h i g h e r , a c c o r d i n g t o th e T e x a s D e p a rtm e n t o f A g r i c u l t u r e ,
A
good demand p r e v a i l e d f o r t o p - q u a l i t y b i r d s , w h ic h c o n t in u e d s h o r t o f n e e d s , w h ile
s l i g h t l y o f f - g r a d e c h ic k e n s w ere f u l l y a d e q u a te a t d i s c o u n t s .
L a s t w eek' s c lo s in g
p r ic e s :
s o u th T e x a s 31 c e n t s 5 e a s t T e x a s 32 c e n t s ; and W aco a r e a 31 c e n t s .
E g g p r o d u c t io n i n T e x a s l a s t month t o t a l e d 22ii m i l l i o n , o r h m i l l i o n more
th a n a y e a r e a r l i e r .
P r o d u c t io n f o r th e f i r s t 7 m onths o f t h i s y e a r w as up 9 p e r c e n t
fro m t h e c o r r e s p o n d in g p e r io d o f a y e a r a g o .
M I S C E L L A N E O U S
The 1952 Y e a r b o o k o f A g r i c u l t u r e i s now a v a i l a b l e f o r p u r c h a s e .
C o p i e s are
f o r s a l e a t $ 2 .5 0 b y th e S u p t . o f D o cu m e n ts, G o vern m en t P r i n t i n g O f f i c e , W a s h in g to n
2 5 ,D . C .
T h is y e a r ' s e d i t i o n c o n t a i n s 952 p a g e s and i s e n t i t l e d I n s e c t s .
I t is
d e s ig n e d t o be a p r a c t i c a l a i d i n i d e n t i f y i n g i n s e c t s , m aking b e t t e r u s e o f th e
h e l p f u l o n e s , and c o n t r o l l i n g t h e p e s t s t h a t c a u s e an e s t im a t e d $ 1* b i l l i o n damage
each y e a r .
The w id e s p r e a d d r o u g h t i s c a u s i n g p r i c e s o f a l l f e e d s t u f f s n o t u n d e r c e i l i n g s
t o c o n t in u e t o a d v a n c e . W heat m e al f e e d p r i c e s a d v a n c e d o v e r $2 p e r t o n l a s t w e e k .
There w ere no g e n e r a l o f f e r i n g s o f r e g u l a r o i l s e e d m e a ls a t c e i l i n g p r i c e s .
M ilk p r o d u c t i o n i n T e x a s i n J u l y t o t a l e d 283 m i l l i o n p o u n d s , com pared w ith
311 m i l l i o n pounds i n th e same month l a s t y e a r .
T h i s s h a r p r e d u c t i o n r e f l e c t s b o th
t h e e f f e c t s o f t h e d r o u g h t and th e downward t r e n d t h a t h a s been u n d e r w ay f o r s e v e r a l
years•
P r i c e s r e c e i v e d b y fa r m e r s f o r m ilk and b u t t e r f a t w i l l c o n t in u e t o r i s e
s e a s o n a l l y u n t i l e a r l y w i n t e r and w i l l a v e r a g e h i g h e r th a n a y e a r e a r l i e r , s a y s th e
U SD A.
P r i c e s a r e a l r e a d y ab o v e p a r i t y .
H a r v e s t i n g o f e a r l y c r o p p e a n u t s h a s b e g u n i n s o u th T e x a s , b u t o p e r a t io n s are
l i g h t due t o l a c k o f m o i s t u r e .
L a t e p l a n t i n g s i n t h a t a r e a a r e s t i l l i n f a i r c o n d itio n
and c o u ld make a good c r o p p r o v id e d a d e q u a te r a i n f a l l comes i n th e n e x t fe w w e e k s .
A
fe w n e w -c r o p p e a n u ts h a v e been d e l i v e r e d i n s o u th T e x a s a t p r i c e s t o g ro w e rs r a n g in g
up t o $30 p e r t o n ab ove s u p p o r t .

Pecan production in Texas i s estim ated a t 28.5 m illio n pounds, which i s 5
times the very sm all crop o f l a s t year but 6 percent below average.
W.

M.

Pritchett

Agricultural Economist