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Number 165

Wednesday, February 25, 1953


I N C 0 ME

S I T UA T I 0 N

Cash receipts from ~ marketings in the Southwest in 1952 surpassed those
of the previous year by r;-i)ercent, despite the drought and declining f~rm prices.
Texas was the only southwestern state to show a decline, registering a 3percent drop from 1951. Cash farm receipts in Oklahoma. were up 12 percent, Louisiana
10 percent, Arizona 16 percent, and New Mexico 3 percent.
For the Nation, cash receipts from farm marketings declined 1 percent, but
gross farm income (which includes government payments, value of farm products consumed
on the farm, and rental value of farm dwellings) was up 1 percent. Estimated farm
production expenses also increased, leaving the estimated net income of $14.3 billion
Virtually unchanged from 1951.

Livestock and poult!:Y numbers ~ Texas ~ and ranches declined during
1952, reflecting adjustments and liquidation made necessary by the drought and the
short feed supply.
Numbers of all cattle and calves remained unchanged at 8,853,000 head,
despite the problems faeed by the livestock industry. The only substantial decline
in cattle numbers occurred in the number of beef steers 1 year old or older. Numbers
of milk cows increased slightly, while the number of beef cattle increased 19 percent
in LOUI'sraDa, 8 percent in Oklahoma, 5 percent in Arii'Orla', and 2 percent in New Mexico.
Texas showed a 1-percent decline in numbers of all beef cattle, which was offset by
an increase in the number of dairy cows.
Numbers of sheeE. and lambs reached the lowest level in the Southwest since
1925, with declines recorded in New Mexico, Oklahoma, and Texas and very small increases in Louisiana and Arizona.
Hog num~ dropped sharply in all southwestern states, and the number of
goats on Texas ranges declined to 1,890,000 head, the lowest since records were begun
in 1920.
Livestock prices on the Southwest market were steady to strong last week,
with prices of most grades and classes of cattle unchanged to slightly lower but with
slaughter calves generally $1 higher and hogs and lambs 50 to 75 cents per cwt. higher
than a week earlier. The week's cattle receipts both at Southwest and other major
markets were sharply higher than th~ previous week and the comparable week a year ago.
Prices per cwt. on the Fort Worth livestock market on Monday, February 23:
Good and Choice slaughter steers $20 to $23.50; fat cows $13.50 to $16; Good and Choice
slaughter calves !20 to $23.SO; stocker yearlings $ls-t'O $23; Good and Choic~ stocker
calves $20 to $24; Good and Choice slaughter wooled lambs $17 to $20; and Good to
Choice butcher hogs $21.
Grain prices strengthened considerably last week, with advances amounting to
as much as 2 cents per bushel on Friday. Prices for most grains now are about as high
as they were prior to the break during the first and second weeks of February. Concern

over the winter wheat crop appears to be the only immediate strengthening factor in
the market. Markets were closed on Monday of this week, because of a holiday, but
trading Tuesday morning opened at somewhat lower levels than Friday's close. Reports
of moisture in the Southwest probably precipitated the weaker prices.
Closing prices per bushel· and changes from a week earlier on the Fort Worth
Grain and Cotton Exchange on Friday, February 20: No. 1 hard wheat $2.66-1/2, up
4-1/4 cents; No. 2 white oats $1.04, up 4 cents; No. 2 yellow corn $1.86-1/4, up
6-1/2 cents, No. 2 yellow-griin sorghums $3.21 per cwt., up 4 cent's.
C 0 T T 0 N

Cotton prices were generally steady last week and on Friday closed 25 points
above the previous week's close. On the Dallas market, Middling 15/16-inch cotton on
Friday, February 20j was quoted at 32.75 cents per pound. Cotton markets were closed
Monday of this week, because of the holiday, but opened Tuesday morning fully steady to
slightly higher than Friday's close.
CCC loan entries decreased sharply during the week ended February 13, with
only 53,200 bales placed under the loan during that period. Loan entries for the
season through mid-February totaled 1,850,000 bales, with repayments totaling 79,9CIJ
bales, leaving loans outstanding at 1,770,100 bales.
Domestic ~ consumption of cotton declined slightly during January, according to the Bureau of the Census; however, mill consumption during the first half of the
season indicates a total consumption for the season of 9,300,000 bales, compared with
9,220,000 bales last season and 10,509,000 two years ago.
Mill stocks of cotton at the end of January were 1,733,000 bales, ·compared
with 1,603,oco at the end of December and 1,677,Q(XJ a year ago. Stocks in public
storage totaled 7,477,000 bales, about 300,000 bales less than a month earlier but
SO percent more than a year earlier.
Texas broiler prices declined about 1 cent per pound last ~eek under pressure
of adequate supplies and only fair to good demand. South Texas and the WacoCorsicana area closed the week steady, but east Texas reported an unsettled undertone
to the market, with very heavy trading • . Official reports were not issued Monday,
because of the holiday, but scattered price quotations suggest that the market was
generally steady at 25 to 26 cents · per pound.
· c!osing prices on Friday, February 20, in all Texas markets were 25 cents_
per pound, down about 1 cent from the previous week.
The BAE repo~ted that 1,412,000 chicks ~ placed on Texas farms during the
week ended February 14. This was 3 percent more than the previous week but lh percent
fewer than a year ago.




Very little trading took place in the Boston wool market last week, and
prices remain generally unchanged.
Approximately one-half million pounds of 8-months wool have been contracted
in the Del Rio area of Texas · at 62 to 65 cents per pound. T~is estimated to cost
$1.58 per pound, clean b'a'SIS, delivered Boston.
Some contracting of mohair in Texas was reported last week at 95 and 96-1/2
cents per pound, delivered to the warehouse.
Carl H. Moore
Agricultural Economist