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A G R IC U LTU R A L NEW S OF THE W EEK FEDERAL RESERVE B A NK OF DAL L AS W ed n esd ay, S e p te m b e r 2 lj, 1952 Number lit 3 COTTON The demand f o r c o t t o n a t t h i s s e a s o n o f t h e y e a r i s n o t m e a s u r in g up to what was e x p e c te d some m onths a g o . T here i s , o f c o u r s e , a f a i r l y good demand f o r s p e c ific grad es. M o st m e rch a n ts a r e b u y in g o n ly f o r p r e s e n t co m m itm en ts, and dome s t i c m i l l s a r e b u y in g - fo r~ p ro m p t d e l i v e r y , sh o w in g r e l a t i v e l y l i t t l e i n t e r e s t in p u r c h a s e s T o r d e f e r r e d d e l i v e r y . E x p o r t i n t e r e s t c o n t in u e s v e r y s lo w . The n e t e f f e c t o f t h e s e c o n d i t i o n s h a s b een t o w eaken th e s p o t c o t t o n m a rk e t c o n s i d e r a b l y . M id d lin g l 5 / l 6 - i n c h c o t t o n f e l l below 38 c e n t s p e r pound i n th e D a l l a s m arket l a s t week f o r th e f i r s t tim e s i n c e M ay; i t b r o u g h t o v e r I4O c e n t s i n e a r l y A u g u s t. H o w e v e r, s p o t c o t t o n p r i c e s a r e s t i l l 3 t o U c e n t s p e r pound h i g h e r th a n a year ago. There was a pickup in domestic m ill consumption of cotton during August. Average daily consumption rose to 37>200 bales - the highest since February. G in y a r d p r i c e s f o r c o t t o n s e e d i n T e x a s l a s t week ra n g e d fro m $65 t o $78 p e r t o n , a v e r a g i n g $ 7 1 .2 0 , com pared w it h $67 one y e a r a g o , a c c o r d i n g t o PMA. GRAINS M o st ch a n g e s i n g r a i n p r i c e s on th e F o r t W orth m a rk e t l a s t week w ere downward, w i t h c o m p r i c e s f a l l i n g s h a r p l y . N o . 2 y e llo w co rn c l o s e d a t $ 2 .0 l* - l / 2 p er b u s h e l , o f f 6 - l / U c e n t s f o r th e w ee k . N o . 2 w h ite co rn a t $ 2 .6 7 p e r b u s h e l w as o ff H4 ce n ts . O a ts d e c l i n e d a b o u t 2 c e n t s p e r b u s h e l . N o . 1 h ard w h e a t , w h ich had been g a i n i n g s in c e e a r l y J u l y , l o s t 1 c e n t , and c l o s e d o u t th e week a t $ 2 .6 6 - 1 / 2 p e r b u s h e l , to p p r i c e . P r i c e s o f b a r l e y and sorghum g r a i n h e ld s t e a d y . G r a in sorghum h a r v e s t h a s s t a r t e d i n th e n o r t h e r n H ig h P l a i n s o f T e x a s and i s w e l l a lo n g i n th e s o u th e r n H ig h P l a i n s . F a i r t o good y i e l d s a re b e i n g made on i r r i g a t e d a c r e a g e s , b u t y i e l d s a r e v e r y l i g h t on m o st o f th e d r y - la n d a c r e a g e , w it h much o f th e c r o p b e in g g r a z e d o r c u t f o r h a y . The T e x a s r i c e m a rk e t i s v e r y a c t i v e , demand i s g o o d . P r i c e s a t H o u sto n l a s t F r i d a y ra n g e d up t o $ 5 .8 7 p e r c w t . , o r $ 9 .5 1 p e r b a r r e l , t h i s b e in g f o r N o . 1 B lu e b o n n e t. LI VESTOCK B e ca u s e o f r a i n s i n s c a t t e r e d p a r t s o f T e x a s and t h e w ea k n ess t h a t d e v e lo p e d in l i v e s t o c k p r i c e s t h e p r e v io u s w e e k , l i v e s t o c k m arket r e c e i p t s i n F o r t W o rth l a s t week w ere down c o n s i d e r a b l y . P r i c e s o f m ost c a t t l e f ir m e d , w h ile cows and c a l v e s s o ld c o n s i d e r a b ly h i g h e r . Cows g a in e d a b o u t $ 1 , some e ve n m o re. S la u g h te r c a lv e s g a in e d $ 1 , w h i le s t o c k e r c a t t l e and c a l v e s r o s e i n some i n s t a n c e s a s much a s $2". B u tc h e r h o gs ad va n ced i n a t r a d e marked b y a n arro w p r i c e r a n g e , and c lo s e d 25 t o 56 c e n t s h i g h e r . S l a u g h te r lam bs c l o s e d s t e a d y t o w e a k , w h i le s l a u g h t e r ewes w ere s t r o n g t o 50 c e n ts h i g h e r . S t o c k e r and f e e d e r lam bs s o l d u n c h a n g e d . R e c e i p t s o f g o a t s on t h e S a n A n to n io m arket w ere l e s s t h a n h a l f t h o s e o f th e p r e v io u s w e e k , and p r i c e s w ere a l i t t l e s t r o n g e r , some s a l e s 50 c e n t s o r more h ig h e r . In the week ended September 13, slaughter of ca ttle in Fort Worth, D allas, and San Antonio combined totaled over 18,000 head, compared with 12,500 in the corresponding week la s t year. Slaughter of calves and sheep totaled 12,500 and 2 ^ , 700, respectively, both double the rate of slaughter a year e a r lie r , WO O L AND MOHAIR Original bag 12 months wool was purchased in Texas la s t week at grease prices ranging from 6 1 - 1/ 2 to 63 - 1/ 2 cents per pound - about $ 1 . 60, clean b a sis, delivered to Boston, F a ll wool brought from $1,22 to $1.25* clean b a sis, delivered. S e v e r a l l o t s o f m o h a ir s o l d a t 85 t o 96-1/2 c e n t s . P r i c e s f o r k i d m o hair ran g ed fro m $1 . 1 0 to $ 1 . 2 1 - 1 / 2 . A v e r a g e w e e k ly co n su m p tio n o f a p p a r e l w o o ls b y d o m e s tic m i l l s i n Ju n e was 6 .8 m i l l i o n pounds v s . 8 .5 m i l l i o n i n Ju n e 1951> a c c o r d i n g t o f i g u r e s j u s t r e l e a s e d . POULTRY Texas b roiler and fryer markets weakened from 1 to 2 cents la te la s t week, reports the Texas Department of Agriculture. Only fa ir demand resulted in many processors ceasing operations the la tte r part of the week. Offerings of lig h t weights were adequate for needs, but supplies of heavier birds continued short. Closing prices for the weeks south Texas mostly 32 cents; east Texas and Waco area mostly 30 cents. Placement of broiler chicks on Texas farms continues at a rate substantially above a year ago. Placements in the week ended September 13 totaled 961|,000 - up 2 1 percent. T e x a s t u r k e y grow ers a r e r a i s i n g 3* 703,000 b ir d s t h i s y e a r , o r 15 p e r c e n t more th a n l a s t y e a r . I n f a c t , tu r k e y p r o d u c t io n i s up i n p r a c t i c a l l y e v e r y p a r t o f th e c o u n tr y - 13 p e r c e n t f o r th e N a t io n a s a w h o le . T e x a s e g g m a rk e ts w ere a b o u t s te a d y d u r in g th e week ended Se p te m b e r 1 3 . Demand c o n t in u e d good f o r t o p q u a l i t i e s . G rad e US AA l a r g e 60 c e n t s p e r d o z e n ; A large 55-60; A medium U5-U8; B large JLj.8—U9« MISCELLANEOUS In a report la s t week on ’’The Balance Sheet of Agriculture - 1952” , the USDA stated that ag ricu ltu ral assets in the Nation, valued at current p rices, rose during 19 5 1 to a new record but says that th is is mainly because of higher prices. The higher p rices, combined with increases in quantities of livesto ck , machinery, and motor vehicles, raised the value of the physical assets of agriculture about 10 percent. I f price increases were omitted, the increase would be only 2 or 3 percent. A US Department of Agriculture o f f ic i a l in a speech at Spokane, Washington, la s t week said that risin g costs of production are forcing farmers deeper and deeper into debt. Farmers’ net income has been at record or near-record levels for the past 10 years, but the problem of risin g production costs is putting a strain on the whole farm credit system. Farmers are going to lenders for short-term money in greater numbers than ever before. Some of them are having d iffic u lt y paying o ff th eir short term loans and are doing more long-term borrowing to pay o ff these short-term obligation s. Any slump in farm commodity prices, he said , ”would go mighty hard with a lo t of farm ers.” Farm em ploym ent i n th e w e s t s o u th c e n t r a l s t a t e s - A r k a n s a s , L o u i s i a n a , O k lah om a, and T e x a s - i n th e week o f A u g u s t 2U-30 was 7 p e r c e n t l e s s th a n a y e a r e a r l i e r and 20 p e r c e n t l e s s th a n t h e A u g u s t a v e r a g e f o r 1 9 li5 -li9 . The 1952 c r o p o f s w e e t c l o v e r s e e d i n T e xa s a t 6 .1 m i l l i o n pounds i s hh p e r c e n t l e s s th a n t h e 1951 p r o d u c t i o n , a c c o r d i n g t o th e B A E . T h is s h o r t cro p i s l a r g e l y due t o s m a l le r a c r e a g e , a lt h o u g h y i e l d s p e r a c r e a r e down 10 p e r c e n t . W. M. Pritchett Agricultural Economist
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