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AGRICULTURAL NEWS OF THE WEEK FE·DERAL Number 199 RESERVE BANK OF DALLAS Wednesd.8'Y, October 21, 1953 COTTON cotton prices at centril markets have risen slight:cy during the past week, but prices being paid for current ginnings at country markets are still mostl¥ below loan values and are unattractive to most producers. £QQ loan entries reported in the week ended October 9 totaled 4ll,OOO bales. PMA reports that according to available records this is the second largest weekly volume of CCC loan entries ever reported. The record high is the 429 1 700 bales reported in the week ended December 2, 1937• Total loan entries for the current season through October 9 were 974,000 bales. This is the largest v'OiUine-ever reported in the corresponding period of 8.I\Y season on record. The Secretary of Agriculture has proclaimed a national marketing ~ota of 30,000 bales and a national acreage allotment of 41,261 acres for the 19 crop of extra long staple cotton. Because of prospective large supplies, the quota is the "minimum" prescribed by law. This is the first time quotas and allotments have been proclaimed for extra long staple cotton. They will apply principally to American-Egyptian, Sea Island, and Sealand cotton. The Secretary set December 15 as the date on which growers of extra long staple cotton will vote in a referendum. Cottonseed prices in wagon lots at gins in Texas averaged $52.07 per ton last week, while the Oklahoma average price was $51.90 per ton, according to PMA. ~ GRAINS Cash grain markets strengthened during the week ended October 15, according to the usnr:--spring wheat advanced 5-6 cents a bushel; winter wheat advanced 3-4 cents. Grain sorghums advanced 5-6 cents per cwt. Oat prices were unchanged to 1 cent higher. On Monday of this week No. l hard wheat sold in Fort Worth at a top price of $2.58 1/4 per bushel, basis carloads on track or in storage. Grain sorghums sold up to $2.90 per cwt. A two-price plan for supporting the price of wheat to growers has been recommended to the Secretary of Agriculture by the Wheat Industry Advisory Committee. The recommended two-price plan would endeavor to assure wheat growers the full parity price for the 500,000,000 bushels of wheat used each year for food in the United States, approximately one-half' the Nation's annual wheat production. The excess over domestic food needs would be sold at free market prices for export and for food. The plan is designed, its supporters sq, to get the Government out of the business of "owning, storing, or rchandising wheat." The Committee says that !!!!, plan would !!!2 .!!:!.!.-!!!!. farmer~ planting ~ marketing restrictions. Under the plan each grower would receive marketing certificates for his share of the total domestic human market. The value of the certiticates would be figured out by the Secretary of Agriculture and would represent the difference between the free market price and the support price. The tanner would sell all of his wheat at the market price. Rice markets were about unchanged during the week ended October 12, the USDA reported:" Favorable harvesting weather prevailed over most of the Southern Belt, and harvesting progressed rapidl1'• LIVESTOCK Most classes of cattle and calves suffered price losses on the Fort Worth market last week. Ho~ prices adviiiiCed ear3'Y in the week but lost these gains later. Slaughter lambs sold 0 cents to mostly $1.00 higher. The number of cattle on teed October 1 in the three important feeding states, Illinois, Iowa, and Nebraska, was 1,325,000 head, or 3 percent more than on the same date last year, according to the BAE. All of the increase occurred in Iowa, which reports a 10 percent gain. The relative:cy- large number on feed this season com.pared with last year was reduced further during the past 3 months. On January l, the numbers in the three states were 30 percent higher than a year earlier. On April 1 they were up 21 percent but on July l only 9 percent higher. A continued lar~e slau~ter but more price stability for cattle is in prospect for 1954, says t e USDAin its aniiii8.I outlook issue of'll°The Livestock and Meat Situation." Hog production will increase next year with some-Towering of --prices in the fall, as hogs from the larger spring pig crop begin to move to market. Total beef production may be a little smaller than in 1953. The persistent declines in cattle prices of 1952-53 appear to be ended, and prices in 1954 are not expected to average lower than in 1953. After 4 years of expansion, ~ upswing ,!!! cattle production !!!! ~ halted, says the report. Cattle and calf slaughter for 19S3 will total around 36 million head, roughly equal to the number of calves raised less death losses and the cattle inventory next January will likely be little different from l "'t January. POULTRY A report of the Texas Department of Agriculture shows prices of turkeys on farms in Texas on Monday of this week as follows: well-finished broad-breasted young tomS-29-31 cents, mostly 30, and young hens 34-36 cents, mostly 35. A poultry and egg report from the same Department shows 2 1/2- !£ 3-pound broilers £!: fryers selling at 28 cents in most areas Monday of this week; south Texas reported JO cents. A year ago prices were 30-32 cents. Commercial hatcheries in ~ u. s. produced 84.9 million chicks during September, the largest output of record for the month. Production during the first 9 months of this year totaled 1,537 million, up 4 percent from a year ago. MISCELLANEOUS The USDA announced last week ~ the CCC ~ placed in ! pool outstandin_g price support loans, other than cotton, totaling-i3'60 million in accordance with previously announced plans for broadening participation in financing of CCC price support loans. Commercial banks were pennitted to participate in the financing of these price support loans by making funds available to CCC at the Federal Reserve Bank of Chicago, Fiscal Agent for CCC. Books for the receipt of applications were opened October 19 and closed at the close of business October 20. It was announced that certificates bearing interest at the rate of 2 1/2 percent per annum would be issued to evidence participation in this pool of loans. Certificates will mature on August 2, 1954, but will be purchased by CCC prior to maturity upon demand. A ~ ~ 2.f. mohair were bougu in Texas ear~ last ~ at 77 to 78 1/2 cents for adult and from $1.02 t'C>ll.03 2 for kid mohair, according to PMA. Approximately 6 to 8 cars of 12-months wool were purchased in Texas last week at grease prices ranging from 68 to 75 centsPei= pound and estimated to cost from $1.75 to $1.80, clean, delivered to Boston. Pritchett Agricultural Economist W. M. 4 "' ~
