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ednesday, July 7, 1954
C 0 11 OD I TY
The U. • • Department of Agriculture reported last week that a sharp decline

in ho
d r·n ~h month ended June 15, together with lower prices for cattle,
co: ~erc'al ve t t ~s, an what,
s lted ·n a 4% (10 points) decline in the
In ex of Prices
ceived by Fa mer • The Index on June 15 was at 248 (1910-14 ;
TISO), which com a·
w· th258 ·n lay an 257 in June 1953. Prices of Irish potatoes,
corn, cotton, a
s vera im ort t frtit crops increased uring the month, part:· 1y f 'settin the lownwa d rnovem nt re istered by most other commodities.
The ar·t.v In ex (th ·n ex of prices fanners pay, inclu ing interest,
tax s, nnd wares) w's---;t'2 2 on Jun 15, wlich is 2 points below a month earlier
nt~ the fi
t lee ·n sine last October.
ost of the ecline in prices
ar ners pay wa fue to ow r Jr·ces for fann production goods, principally feed
and feeder livestock, while fami y livin items eased only slightly. The June
Parity Index was 5 J ·nts, or ·bout 2%, higher than a year earlier.
With farm cornmo 'ty 1rices own more than prices paid by farmers for
com no ·tie an s rv·· c , tl e June arity Ratio also declined.
t 88% the ratio
w- s the
1 ce
arcb 94Y:-The Parity \at· o at 88% mean , theoretically, that farmers generally
w · r c 'ving 88% o p 'ty fo commodities sold as of June 15. Among producers
of 'nlividual farm com. odities, however, the ratios of prices received to parity
varied s "rply.
Bor exampl , cotton so
at 92% of parity, while wheat brought 77% of
p rity. Percen age i u es for oth r farm comnodities: rice 76, corn 82, peanuts
3, Irish iotato s 00, milk 82, cottonseed 71, sor hum grain 89, beef cattle 80,
c1ick ns 76, e s 78, r o s 105, ambs 88, and ool 94.




nat ·on


that the price support rates for 1954-crop
nationally instead of the 2.20 minimum average
The n w support rate is the highest ever
un er its w eat price support program. The
2 .21.

are seasonally inactive.

th Am
m kn

e innin

to head up.

11eanwhile ,

MI S C E L L A N E 0 U S
Changes in spot cotton prices during the past week or two probably have
limited significance, since many prospective buyers are awaiting the first official
1954 cotton acreage estimate which will be released on Thursday, July 8. Several
private estimates already have been published, but these show considerable variation.
CCC cotton loan repayments have been declining weekly, and the week ended
June 25 totaled 37,500 bales, which brings the total for the season to less than
1.6 million.
Red meat production in commercial slaughter plants in the U. S. during May
totaled almost 1.8 billion pounds, according to the USDA. This was 1% less than in
April but 3% more than in May 1953 and represented the largest May production since
records were started in 1946. In the first 5 months of 1954, production of beef was
up 9%, veal up 18%, lamb and mutton unchanged, and pork down 11% from the correspondi
months last year.
The Fort Worth office of AMS reports that cattle prices on the local market
lost 50¢ to $1 last week, calf prices declined about ~l. Butcher hog prices advanced
50¢ to 75¢, while lamb prices gained as much as $1.
Texas broiler markets closed steady to strong last week. Prices rose
to the highest level since January 8. Broilers or fryers weighing 2~ to 3 pounds
brought 26¢ in major producing areas.
Weekly placementsof broiler chicks on Texas farms have been running well
below comparable weeks of 1~3, but higher than in 1952. In the week ended June
26, placements totaled 1,347,000 chicks, down 6% from a year ago.
Prospective production of crimson-clover seed in the U. S. this year is
forecast by the USDA at 16,430,000 pounds of clean seed, 13% less than the 1953
harvest and 10% below the 1943-52 average. The Texas crop is indicated at 350,000
pounds, which compares with 480,000 pounds last year and is only about one-half the
10-year average.
Growth of the peanut crop in Texas and Oklahoma, which is almost entirely
planted, continues good.- Some sections are becominE a little dry and rains will
be needed within a couple of weeks. With the heavy recent rains in south Texas,
some additional peanut acreage is being planted there for late harvest.
New crop Texas-grown Irish potatoes sold in Dallas last week as follows,
per 50-pound sack, washed: U. S. No. 1 A, ~l. 75 to ~~2; size B, ,~pl.)O.
W. M. Pritchett
Agricultural Economist