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AGRICULTURAL NEWS OF THE WEEK
FEDERAL
Number
214
RESERVE
BANK
OF
DALLAS
Wednesdq, February 3, 1954
COTTON
Spot cotton prices have moved up further in the past few marketing days.
On Monday, February 1, Middling 15/16-inch cotton averaged 33.82¢ per pound in the
ten leading me.?"kets, compared with 33.42~ a week earlier.
Dem.and for spot cotton has picked up in recent.weeks and this has been
met with a dwindling supply of "free" cotton. Thus, prices are being .forced upward
slow4" but steadily.
Cotton producers .!:!:!.. ~ offering cotton for !!!!, !!!Z. free].y, according
to reports. However, sales are being made at above-loan values. Some are selling
loan equities at $3 to $5 per bale, net to grower.
Movement .2£. cotton ~ the ~ program, meanwhile, continues its f ast
pace. In the week ended January 22,loa.n entries totaled 210,600 bales, bringing
the season's total to almost 6.4 million. CCC stocks of all loan and pooled cotton
on January 22 amounted to over 8.1 million bales.
AMS says that there is still the likelihood that after the movement of
cotton into the loan program slows down, or even after the program's expiration date
(April 30), ~will~ considerable movement of cotton~ 2.f. !!!!. program i n
order to meet anticipated domestic mill and export requirements and to provide
minimum working stocks until the 1954 crop reaches the market.
Planting .2f. ~ 1954 crop has already started in the Lower Rio Grande
Valleye
The USDA announced last week that the procedure to be followed by cotton
farmers in obtaining cotton classi.f'ication and cotton market news services in 1954
under the Smith-Doxey Act will be about thesaine as in 1953. LIVESTOCK
Fluctuations in livestocK prices on the Fort Worth market last week were
within a relatively narrow range with the market generall.1" showing unusual stability.
Slaughter steers made little net change for the week although they were off sl ightl,y
on opening d~s. Stocker and feeder trade was active and prices held firm.
Slaughter calves closed last week with unevenly higher prices. Hog prices were
higher the first part of the week but then turned downward after having hit a 5-year
high of $27.50.
Good and Choice slaughter steers ~yearlings brought most]3 $18 t o $23 1
with a few to $24. Common and Medium grades sold from $12 to $17.
Fat cows cleared $ll to $14 on the Fort Worth market last week, while
Canners and'Cu'tters drew $7 to $ll.
Good and Choice fat calves sold for $16 to $20; Common and Medium grades
cashed at $12 to $15.
--Good and Choice wooled fat lambs sold at $18 to $20; shorn rat l ambs
went for $17 to $19. Stocker and""'1eeder lambs brought most]\r $15 to $18.50, a few
t o $20. Slaughter ewes sold at $6.SO to $8.$0.
·
POULTRY
Texas broiler markets were weaker last week. Prices in sane markets lost
1¢. Closing price tor 2 i/2- to 3-pound broilers in most areas was 23¢; Corsicana
F.O. B. plant 2~¢•
WeekJ.l placements of broiler chicks on Texas farms continue to run well
ahead of a year ago. Placements in the week endecrJ'"anuacy 23 were l,356,ooo,
which compares with l,264,ooo in the comparable week of 1953 but is below the
1,462,000 in the same week of 1952.
Heavy-breed turkey breeder hens on U. S. farms on January 1 were estimated
by the USDA at almost ~.7 million, or~less than a year ago. Hens of the light
br eds comprised about one-fourth of the total and their number was 40% above a
yea • earlier.
Top-grade connnercial fryers sold at 2'¢ to 25¢ per pound and inferior
kinds ranged from 20¢ to 22¢ on the Fort Worth wholesale markets Monday. Heavy
hens of 4 pounds and over b 0ught 20¢ to 24¢. Ung aded ~ were reported most]3'
$11.50 to $12.50 per case, with some high-quality grad~ eggs up to $14.
MISCELLANEOUS
Among factors likely to affect the 1954 crop pr duction, the most important is probably tha crop reduction program which will cover most major crops,
says the USDA. Some of the diverted acreage is expected to go to grasslands and
summer fallow, but s . e increases are likezy in the acreage of soybeans, oats,
barley, and sorghums. Rye acreage sown has already increased sharp~. The farm
labor supply is etter adjusted to probable demand~ all available fertilizer is
likezy to be used · n 1954, and machinery and equipment app ar to be adequate.
These factors, and be likelihood that better adapted land will be kept in crops,
make it seem liloly t at the uptrend in yields pe acre in r cent years will be
continued this year.
AMS r ports that a car of spot original bag, Ave age to Good French
Combing 12- onths Texas wool was sold last week a $1.78 to $1.80 per pound, clean
basis, while 12-m nths woor-was contracte1 for sp ing delive if at around $1.75,
clean basis, deli ered.
Th~re has been sane contracting of T xas mohair at 66 1/2¢ to 70¢ for
Adult and $1 for Kid mohair.
Hig er prices for hogs, beef catt~e, and canmercial vegetables, together
with smaller ncreases for lambs, chick ns, wheat, and hay, during the month ended
January 15, 1954, raised~ Index E!_ Prices Received !?z. !!:_~ Fa:.iners five points.,
or to 259 {1910-14 • 160), which compares with 268 a year earlier. Meanwhile, the
Parity Index {p ices paid by fa ers) rose to 282. The Parity Ratio on January 15
was 92%, up one po·nt from mid-December.
~ agricultural e:xports in November, valued at $280 million, were 16%
higher than in October and 3% above November 1952. The July-October total shows a
year-to-year gain o 3%.
Marketing ~ the peanut crop in the Southwest is practically completed,
according to AMS. Most 'panish type were placed under Govennent loan or sold at
loan value. Valencia-type peanut in New Mexico, however returned fanners $30
per ton above the support price.
Stocks of wheat in al positions in Texas on January l are estimated by
the USDA at about-ro5,ooo,ooo b sh s, versus 68,000 000 a year earlier.
w. M. Pritchett
Agricu tural Econanist
