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FEDERAL

RESERVE

BANK OF DALLAS

Wednesday, March 11, 1953

Number 167

RAIN 111
One of the heaviest general rains in more than 2 years covered west Texas
Sunday night and Monday of this week. The steady downpour that brought a'SDiiich as
4.68 inches of rain to ~Angelo virtually blanketed the region that has been
hardest hit by the prolonged drought. Showers and rains earlier in the winter had
brought relief to the eastern halt of Texas, and scattered light rain or snow has
fallen periodically in the Plains and northwestern sections of the state. But prior
to this week's storm, much of the ~ Rolling Plains and the Edwards Plateau country
had received virtually no moisture. Reports Tuesday morning told of stock tanks
being refilled and of a growing optimism among farmers and ranchers.

L I VES T 0 CK
The outbreak of "X disease• in north central and northwest Texas continues
to take a heavy toll, with large numbers of cattle marketed on a"salvaged basis.•
Federal meat inspectors have been approving the meat for consumption except that
all of the vital organs must be removed, which lowers the value of the carcass considerably. The disease is relatively new, but it has been fairly well established
that it results from cattle eating certain petroleum products. The current outbreak
is reported to have been traced to a certain feed, and the feed company is offering
to reimburse stockmen for legitimate losses incurred through the use of their feed.
Cattle prices continue to show weakness. as the movement to market remains
fairly heavy. Price losses during the past week amounted to around 50 cents to $1
per cwt. Hog prices continue steady to strong, and lambs were unchanged to 50 cents
higher.
Prices per cwt. on the Fort Worth market on Monday, March 9: Good and
Choice slaughter steers $18 to $22, a rew-at $22.50; Good to Choice slaughter calves
$18 to $22; light supply of stockers and feeders at $15 to $21; Good and Choice spring
lambs $23; Good and Choice wooled slaughter lambs $21 to $22; and Good to Choice
butcher hogs $21.75.
--iieports from Corn Belt-states indicate that the movement of feeder cattle
into feed lots in that a:rei' dUring February was about ~-~ as large as a year ago.
Losses suffered by feeders on their operations this winter are reported to be the main
factor in the decline. Feeder cattle prices are fully $10 per cwt. under a year ago,
but feed-lot operators appear to be reluctant to buy, even at the reduced prices.
WOOL

AND

MOHAIR

prices showed little change during the past week. Some 12-months Texas
•ool, grading good, French combing sold at $1.75 per pound, clean basis, while average
to good French combing wool brDUght $1.70, clean basis.
Some contracting or mohair was done in Texas last week at 96-1/2 cents for
adult and $1.21-1/2 for kid mohair.
Mohair production in the ~~ States totaled 12,116,000 pounds in 1952,
according to the BAE. This is 6 percent smaller than the 1951 clip and 34 percent
below the 10-year (1941-50) average. Arizona and New Mexico showed an increase in
mohair production over 1951. Production in Texas a=r-11,561,000 pounds is the lowest
for this state since 1926. Cash receipts from mohair produced in 1952 in the United
States are reported at'1!1,6b'O';"(bo, 23 percent below 1951.
~

GRAINS
Grain prices remained generally unchanged last week except for a slight
decline in wheat on Monday of this week, resulting from reports of additional
moisture in the Southwest.
Closing prices per bushel on the Fort Worth Grain and Cotton Exchange on
Monday, March 9: No. 1 hard wheat $2.64-l/4T1To. 2 white oats $1.02-3/4; No. 2
yellow corn $1.85-1/4; and No. 2 yellow grkin sorghums $3.~r cwt.
---rhe general rains early this wee brought only ligh~ rainfall to major
wheat producing areas of the Southwest. Amarillo reported .o inches, while Wichita
Falls received .48 inches and Lubbock .62 inches. However, scattered reports indicate that except for the Amarillo area, where some acreage has been lost due to blowing,
the crop is in better condition thiii°'iiyear ago.
The south Texas fi&i crop is reported to be making very good progress, with
the planting of spring-crop-flax active in west central Texas. Some early ~ in
the Lower Rio Grande Valley is about knee-high, and planting is active in south central
counties of the state.
COTTON
The cotton market was relativel3" inactive during the past week, with
domestic and export demand continuing on a hand-to-mouth basis but in sufficient
volume to support a iilode"rite seasonal increase in prices. More than 1,900 1 000
bales of 1952-crop cotton have been placed in the loan this season, - but repayments
during the last week of February were more than 20,000 bales, the largest volume
for any week this season. As of February 27, loans were outstanding on 1,866,000
bales.
Middling 15/16-inch staple was quoted on the Dallas market on Monday,
March 9, at 33.00 cents per pound, up 5 points from the previous Tuesday.
Planting of this year's cotton crop is nearing completion in the Lower Rio
Grande Valley, following light to moderate rains the first week in March. Planting
was active in the Coastal Bend section prior to the rains early this week and will
continue as soon as fields dry.
POULTRY
broiler markets were genera!lY steady, and prices were ~ last week.
Supplies have been about adequate to meet a ~ to good demand. On Monday of this
week the south Texas market was strong to 1 cent higher, with prices for 2-1/2 to
3 pound weights quoted at 30 cents. Other markets were quoted at 28 to 29 cents,
mostly 28 cents.
Commercial broiler placements on Texas farms during the week ended February
28 totaled 1,426,ooo. This was 8 percent more than a week earlier but 14 percent
fewer than a year ago. The total chick placements in all reporting broiler areas
in the U.S. were 6 percent ~ than a week ago but 9 pei=cent ~ than a year
earlier:-~

Carl H. Moore
Agricultural Economist