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AGRICULTURAL NEWS OF THE WEEK
FEDERAL

Number 187

RESERVE

BANK OF DALLAS

Wednesday, July 29, 1953

COTTON
The signing of a truce in Korea appears t,o have had very little effect
on the spot cotton prices. In fact, middling 15,116-inch cotton closed on the
Dallas market on ionday, July 27, at 32.60 cents per pound, the same as on Thurs~
and Friday of last week.
The PMA reports that cotton ginned in the Lower Rio Grande Valley is
moving into trade channels at prices averaging somewhat above current loan levels.
The quality of much of this cotton, however, is running considerably lower than a
year ago. Private estimates place the Valley crop at around 325,000 bales, which
is not greatly different from last year's relatively short crop but is only about
half the bumper crop of 1951.
The movement of cotton production from east to west is taking a big jump
this year. California, Arizona, and New Mexico are8:ccounting for 9.8 percent or
the total u. s. 1953 acreage, the highest proportion on record. Last year these
states had 8.9 percent.
The USDA has forecast the disappearance of cotton in the United States
during the 1953-54 marketing year at about 12.2 to 13.5 million bales, compared
with 12.7 million bales estimated for the current marketing year. This over-all
forecast includes an estimate of 3 to 4 million bales for export, which compares
with 3.2 million bales for the 1952-53 cotton year. Stocks of cotton on hand
August 1, 1953 will be about 5.2 million bales.
The first official estimate of cotton production this season will be
issued by the USDA on August 10.
GRAINS
State wheat acreage allotments for the 1954 crop were announced last week
by the Secretary of Agriculture. The allotments are within the national wheat
allotment of 62 million acres. Kansas, with about 11.9 million acres, has the
largest state allotment. North Dakota is allotted 8.3 million acres, while
Oklahoma receives 5.2 million acres.
Texas has been allotted 4.8 million acres, which compares with 5.4 million
planted tor this year's crop. New .Mexico is allotted 499,000 acres, compared with
633,000 planted for this year. --Grain prices were mostly lower on Monday of this week, following announcement or the Korean truce signing, although to what extent the truce was the cause
of this decline is uncertain. There were heavy receipts of grain at terminal
markets, while favorable weather was reported from grain producing areas, and these
factors contributed to the price decline.
No. 1 hard wheat closed in Fort Worth on Monday at a top price of $2.46 3/4
per bushel, which is 1/2 cent below the top price on Friday but is still higher than
a week ago.
No. 2 white oats sold in Fort Worth Monday at a top price of 99 3/4 cents
per bushel - 1 1/2 centS'"i)elow the top price on Friday but also higher than a week
earlier.
The ~ supply for 1953-54 - crop plus carry-over - is likely to be the
largest on record, says the USDA. If the July 1 production prospect materializes,
prices at harvest time will be well below the support price.

L I VE S T 0 CK
Livestock prices on the Fort Worth market have been somewhat unstable
for the pa.st week or more, and with prices of different types and grades of
animals fluctuating widely it is difficult to determine correct:cy- the actual trend
of the market.
·
Hog prices last week reached $27.25 per cwt. - a new high for the year,
and the highest tor this market since September 1948.
Slau~hter lambs were steady to strong, while reeder lambs showed gains of
as much as $1. 6.
Slaughter steers ~yearlings made little net change last week, while
slaughter calves were irregular. Less desirable classes of slaughter cattle dropped
$1.00 to $2.00 per cwt., while stocker and feeder cattle and calves gained about
$1.00.
~ prices on the San Antonio market last week ranged as high as $6.25
per cwt. tor Angora and Spanish types. Common and Medium slaughter kids brought
$3.00 to $5.00 per head.
Panic selling 2£ livestock in the Southwest appears to have subsided,
although marketings continue relatively heavy. Recent rains have been beneficial
in reviving pastures and ranges east of Fort Worth and San Antonio, but much additional moisture will be needed to revive ranges in drought-stricken areas to the
west.
POULTRY

Broiler markets in Texas continue to hold about steady. On Monday of this
week, prices in local markets were mostly around 29 cents per pound for birds
weighing 2 1/2 to 3 pounds.
The number of chicks hatched in commercial hatcheries in Texas in June was
7.4 million, up 29 percent from a year earlier, according to the BAE in Austin.
Texas hatcheries reporting on their turkel operations showed a 6-percent
decrease in output of poults in June as compared with the same month last year.
The same hatcheries report a 9-percent decrease for the first 6 months of 1953,
when compared with the same period last year.
~ production ~ Texas farms during June is estimated by the BAE at 231
million - 12 percent less than in June 1952. There was a decline in both the number
of layers and the production of eggs per layer.

MI S C E L L A N E 0 U S
The USDA has announced .minimum prices at which it will support individual
types of 1953-crop peanuts. Spanish-type peanuts produced west of the Mississippi
River will be supported at not less than $230 per ton. Final support prices will be
determined on the basis of 90 percent of parity as of August 1.
PMA reports on wool sales in Texas last week show Good French combing and
staple 12-months Texas woOl"iarketed at $1.80, clean basis, which compares with an
estimated or actual 1953 loan price of $1.63. Average to short 12-months 64s Texas
wool brought about $1.70, clean basis. Some Choice Delaine-type wool sold as high
as $1.88, delivered to Boston.
Elberta peaches of good quality and size sold Monday on the farmers' market
in Dallas for $3.50 to $4.oo per bushel, medium size $2.75 to $3.25. Leconte and
Bartlett peas4 brought $1.25 to $1.75 per bushel. Good quality tomatoes were quoted
at $3.50 to
.oo per bushel. Texas watermelons brought 2 to 3 cents per pound; Icebox melons, 25 to 30 cents each.

w. ».

Pritchett
Agricultural Economist