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A G R IC U LT U R A L NEW S OF THE W EEK FEDERAL Number 15# RESERVE B A N K OF DALLAS Wednesday, December 17* 1952 COTTON Cotton prices declined further la s t week, with l5/l6~inch Middling quoted at Dallas on Wednesday, December 10, at 31.65 cents per pound - 15 points below the loan ra te . Heavy se llin g and lack of demand were responsible fo r substantial losses in v ir tu a lly a l l futures contracts, as w ell as spot cotton. Prices regained some ground Thursday and Friday and on Monday of th is week closed at 32.20. Lack of m ill demand and continued dullness in the export trade are exerting considerable downward pressure on cotton p rices. As a re su lt of the recent price declines, in terest in the Government l oan is increasing. The CCC reports that loan entries during the week ended December 5~ were 18U,800 b a les, the largest weekly to ta l thus fa r th is season. Total loans through that date were 519,UOO bales, compared with s lig h tly more than 800,000 bales on the corresponding date la s t season. Ginnings in the U. S . through December 1 totaled 13,14-20,000 bales, compared with 12,8Oli,000 bales to the corresponding date la s t season. Ginnings in Texas through December 1 totaled 3,310,307 bales out of an estimated crop of 3,7^0,000 b ales. WO O L AND MOHAIR Reports from the Boston Wool Market during the week ended December 12 indicate a rather quiet week of trading, with prices generally unchanged. Reports from A ustralia indicate some upward tendency in prices at auction sales in that country. Sales in Texas of best 12-months wool were reported up to $1.70 per pound, clean b a sis, delivered Boston. Mohair trading was unchanged from a week ago, with prices fo r most grades at or near the" c e ilin g s . LI VESTOCK Livestock prices were again under pressure la s t week, and declines of 50 cents to $3 per cwt. were” recorded. Receipts were about in lin e with the previous week but were su b stan tially higher than the comparable week a year ago except fo r calves and hogs, which were s lig h tly sm aller. Heavy inventories of meat at the packers and at the wholesale le v e l have retarded demand fo r slaughter c a ttle . F a irly heavy receipts during the past several weeks have also exerted downward pressure on p rices. Fed c a ttle grading high choice and above continue to hold f a ir ly steady, but other k illin g kinds are sharply lower. Stockers and feeders met a lim ited demand, with many going to k ille r s that would normally have been returned to the feed lo t or pastures. Closing prices per cwt. on the Fort Worth market on Monday of th is week were! Good and Choice slaughter steers $27.50; Commercial cows $16.00; Good and Choice stocker and feeder steers $21.00; Good and Choice slaughter calves $2U.50; Good and Choice stocker calves $22.00; Good and Choice hogs $17.00; and Good and Choice wooled slaughter lambs $20.00. GRAINS The additional moisture received in November has been of considerable benefit to the Texas wheat crop. Much of the acreage that was Mdusted in n e a r lie r has germinated and is up to a stand. Some early wheat that survived the dry weather in October is now furnishing some pasturage. Reports indicate that additional a c r e a g e was s e e d e d f o l l o w i n g t h e r a i n s . S lo w n e s s i n t h e e x p o r t t r a d e , p l u s am ple s u p p l i e s o f m o st g r a i n s , c o n t i n u e s t o b r i n g some downward p r e s s u r e on p r i c e s ; h o w e v e r, p r i c e ch a n g e s i n r e c e n t w eeks h a ve b een r e l a t i v e l y s m a l l , i n d i c a t i n g c o n s i d e r a b le s t a b i l i t y i n t h e m a r k e t. C l o s i n g p r i c e s p e r b u s h e l on t h e F o r t W orth G r a in and C o t t o n E x ch a n g e on Monday o f t h i s w e e k : N o . 1 h a r d w h e a t $ 2 .7 0 - 3 / l t , N o . 2 w h i t e o a t s $ 1 . 1 3 - l / U , N o . 2 y e l l o w c o r n $ 1 .8 8 - 3 / U , an d N o . 2 y e l lo w m ilo p e r c w t . $ 3 « U 3 . The USDA an n ou n ced l a s t week t h a t t h e r e w o u ld be no m a r k e tin g q u o ta s n o r a c r e a g e a l lo t m e n t s on r i c e i n 1953* The D e p artm e n t s t a t e d t h a t t h e s u p p ly and e s t im a t e d demand f o r r i c e e li m i n a t e d t h e n e c e s s i t y f o r q u o ta s and t h a t i n v ie w o f t h e u n s e t t l e d p o l i t i c a l c o n d i t i o n s i n m o st o f t h e r i c e p r o d u c in g c o u n t r i e s o f t h e w o r l d , no a c r e a g e a l lo t m e n t s w o u ld be im p o s e d . A c o n t in u e d h e a v y demand f o r e x p o r t s i s a n t i c i p a t e d , w it h t h i s o u t l e t t a k in g a b o u t o n e - h a l f o f US p r o d u c t i o n . R i c e p r i c e s h a v e b een r e l a t i v e l y s t r o n g t h i s f a l l , d e s p i t e h a r v e s t o f a n e a r -r e c o r d c r o p . P r i c e s r e c e i v e d b y T e x a s r i c e g ro w ers h a v e been somewhat h i g h e r th a n a y e a r e a r l i e r . POULTRY T e x a s b r o i l e r p r i c e s re m a in e d g e n e r a l l y s t e a d y d u r in g th e p a s t w e e k , w it h s u p p l i e s a b o u t a d e q u a te t o m eet a l i m i t e d dem and. P r i c e s i n t h e W a c o -C o r s ic a n a a r e a c l o s e d th e week 1 c e n t lo w e r , w h i le o t h e r a r e a s h e l d s t e a d y . P r i c e s p e r pound on M onday o f t h i s week w e r e : s o u th T e x a s 32 c e n t s p e r p o u n d , e a s t T e x a s 32 c e n t s , Waco a r e a 31 c e n t s . The BAE reported 1,383,000 chicks placed on Texas farms during the week ended December 6. This was only s lig h tly higher than the previous week but about 2h percent above the corresponding week a year ago. Texas turkey markets were re la tiv e ly in a ctiv e , with too few sales to establish a marketl Reports from other areas indicate that trading is f a ir ly steady, with prices generally unchanged. Additional quantities of turkey meat have been purchased under the Government’ s price support operations. COMMERCIAL VEGETABLES A r e p o r t b y t h e B A E , i s s u e d on D ecem ber 1 2 , i n d i c a t e d p r o s p e c t i v e p r o d u c t ! 013 o f e i g h t w i n t e r v e g e t a b l e s i n T e x a s t o be 28 p e r c e n t l a r g e r th a n l a s t y e a r p e r c e n t b e lo w a v e r a g e . I n c r e a s e s w ere r e p o r t e d f o r b e e t s , c a b b a g e , c a r r o t s ,Ucaulifl0W«rp o t a t o e s , an d l e t t u c e . H a r v e s t was s t a r t e d e a r l i e r th a n u s u a l and u n d e r r e l a t i v e l y fa v o r a b le c o n d it io n s . S i n c e t h e r e p o r t was i s s u e d , low te m p e r a tu r e s t h e n i g h t s o f D ecem ber lit and l £ may h a v e c a u s e d some damage t o u n h a r v e s te d v e g e t a b le c r o p s i n s o u th T e x a s and th e Low er R io G ran d e V a l l e y . Carl H. Moore A gricu ltu ral Economist
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