View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.





Wednesdey- 1 January 13, 1954

Number 211

L I V E S T 0 CK
Choice fed steers and yearlings sold in Fort Worth on Monday of this
week at $21 to $22, one load-ii22.5o, according to the USDA. Utility cows cleared
from $10.00 to $12.00, a few commercial $12.~0 to $13.SO. A few loads of Good
feeder steers brought. $16.~0 to $17 • .,0, Choice to $18.SO.
Good and Choice slau£hter calves sold mainly from $16.00 to $19.00, a
few higher, Utility and Commercial" $12.ooto $15.~0.
Choice butcher ~ogs moved at prices ranging up to $26.00 1 Medium to
Choice butchers brought $ 3.00 to $25.25.
Good and Choice milk-fed lambs sold at $19.00. Good and Choice wooled
lambs turned from $18.50 to $19.00. Good and Choice shorn slaughter lambs moved
at $17.~0 to $18.SO. Medium and Good feeder lambs sold from $15.00 to $18.00.
U.S. Department of Agriculture beef ~rchases last year, totaling about
250 million pounds, diverted an estimated-i3b5',~o head of lower-grade cattle from
normal trade channels. About 90 percent of the beef purchased was slated for use
in school-lunch operaticns and by other institutional outlets.
Commercial meat production in Texas in November totaled over 112 million
pounds, or 29 percent mere than a yearearlier, according to AMS. In the U
year-to-year gain was 14 percent.
In the first 11 months of 1953, there were 1,533,000 head of cattle
slaughtered in conunercial plants in Texas, versus 1,066,000 in the same months
of 1952. The canparable figures for calves, in that order, were 1,191,000 and
775,000; hog~ 1,339,000 and 1,825,000; and dhetp ~lambs, 772,000 and 627,000
head. Practically the same trends were evi en in other southwestern states.
The USDA gives ~ feed conditions in Texas on January 1, 1954, a
rating of 67, which is in the range of poor but-which is above the 63 a year
earlier. A rating of 75 is about average for this date. The January 1 ratings
for Ari1.ona and New Mexico were 65 and 66, respectively, each of which was much
below average. Sales of ~ from CCC stocks, under ~ emergency· ~ program set
up last July, continued in volume through December. Through December 11, orders
for nearly 600,000 tons of cottonseed meal, pellets, and slab had been approved
by County USDA Drought Committees, of which over 400,000 tons had been shipped.
Orders for mixed feed totaled about 103 1 000 tons and for hay, 1,274,000 tons.
Orders also had been approved for about 11 million bushels of corn and 15.5
million bushels of oats.


C 0 T T 0 N

Spot cotton prices have moved up a few more points during the past week
and are now very close to CCC loan levels. Some qualities are quoted above loan
values in local markets. Cottonseed prices, on the other hand, declined in Texas
last week, averaging $51.80 per ton, or 86 cents lower than in the previous week.
CCC loan entries reported in the week ended January 1 totaled 195,800
bales, compared with 200 1 200 in the preceding week and 296,200 two weeks earlier.
Loan entries for the season through January 1 were 5,554,100 bales. This excludes
86,500 bales, the notes for ~hich had been returned to lending agencies for correction. Loan re~ayments through January 1 this season were 54,400 bales, leaving
loans oUt'Standing on 5,499,100 bales of 1953-crop cotton.

Through January 1, CCC recei ed 876,225 bales of Texas cott on and
137, 115 bales of Oklahoma cotton into the lo:m prog:ram. Since January 1, loan
ent ries have been heavy, and it is reported ~hat l ocal lending agencies and cooperatives have received a deluge of loan app],icaticns .
The USDA S8',YS that the supp1y 2f cotton in the U.S. for the 1953-54
season is estimated at 21.9 mill ion bales,
disap~arance is forecast at
about 12.J million. This would leave a c~-over on August 1, 1954, of about
9.6 million bales, compared with 5.5 millOila year earlier . About 6.S million
bales of this c~·over probably will be held by CCC under the price support
Export of cott on during the current season is expected to increase
moderately over t he 3 million bales exported in 1952-53. Loans and grants from
the U.S. Government to finance cotton exports during the 1953-54 sea.son" amount to
~3 million as o? December 29, which, i f complete:cy used, would finance about
1 1/2 million bales.





Farm real estate values in the United States as of November 1, 1953,
were lower tnan-i:n-J\!lY in practica!ly all states, according to a report released
last week by the USDA. Three-fourths of the states showed declines of 2 to 4 percent, but values were down 5 percent or mofe in 10 states.
In st ates lying wholJs" or part'.cy" within thi~ Federal Reserve District,
percentage declines were as follows: Arizona 1, Louisiana 2 1 New Mexico 3, Oklahoma 5, and Texas ?·
Fann land values in the United States in November averaged 6 percent
below a year-ea.r!!6r. Percentage declines in states of this District were:
Arizona lO, Louisiana 2, New Mexico 91 Oklahoma 9, and Texas 4.
Although considerable decline in fann land values has occ~red in the
Southwest. in the past year, they still average relative]¥ high. Percentage over 1935-39: Arizona. 153, Louisiana 135, New Mexico 218, Oklahoma 157,
Texas 145, and United States 147.
Probably fewer fanns were sold dll.ring the summer and fall of 1953 than
during any comparable period since 1939, says the report. This represents a continuation of the downward trend in sales activity that has prevailed every year
since 1947, except 1950 when the Korean outbreak caused a temporary upturri. Reduced farm income and uncertainty as to future levels of income are given as
probab~ the major factors contributing to the sluggish market for fann land this
past summer and fall. Not only were fanner-buyers hesitant to assume large debts
with a declining farm real estate market in prospect, but more stable economic
conditions have largely checked the interest of the investor-buyer in farm land
as an inflation hedge.
Interest rates on new f arm-mort~age money have generally increased in
all parts of the country d\ir"fiig the past years, reflecting the higher interest
yields on Government and corporate securities.
In this connection, a recent survey of interest rates on farm mortgages
in several midwestern states, made by the Federal Reserve Bank of Chicago, shows
that the most common rate charged there by commercial banks is 5 percent. Only
a few bankers expected interest rates to show any further advances during 1954.

W. M. Pritchett
Agricultural Economist