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Number 199





Wednesd.8'Y, October 21, 1953

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.

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'•

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
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.
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.
Agricultural Economist
W. M.