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___E_K__·-----------------~--.----Wednesday, June 14, 1950
Number 24
Federal Reserve Bank of Dallas
C 0 T T 0 N

The sharp advance in cash cotton prices continues, with current quotations
at the highest level in 23 months. The average-Price of spot cotton, basis 15/16
inch Middling, at the 10 leading markets reached above 34 cents per pound last week,
and on Monday of this week was at 34.02 cents, the season's high.
Spot markets were very active last week; sales in the 10 markets totaled
177,000 bales, vs. 144,600 the previous week and 55,500 in the corresponding week
last year. This is the largest volume of sales reported in any week in June in over
10 years.
Mill demand for cotton improved last week, according to the PMA, and many
mills were reported to be covering their requirements through the summer and into the
fall months.
Loan repayments on 1949-crop cotton continued in large volume through May.
During the week-erided June 1, farmers repossessed 120,300 bales. Thus far this
season, a total of over 1.5 million bales, or 48 percent, of 1949-crop cotton placed
under loan have been repossessed.
Surveys made by the USDA and the Texas Agricultural Experiment Station indicate that thrips are doing serious damage to cotton in many fields in the central and
northern parts of Texas and in late-planted fields in the Gulf Coastal Area. Boll
weevils are increasing rapidly and are becoming a serious threat to the cotton crop
in the Lower Rio Grande Valley and in many Upper Coastal counties.
Wheat prices on the Fort Worth Grain and Cotton Exchange have been on a
downward trend since harvest of the new crop began. On Tuesday of this week, No. 1
hard wheat sold for a top price of $2.34 per bushel, which compares with ~>2. 37 a week
ago and $2.48-3/4 a month earlier.
The U. S. vnnter wheat crop is estimated at 710 million bushels, which compares with 902million harvested last year, and reflects an improverw=-nt in production
prospects since May 1. This crop, together with the spring wheat crop, is not expected to supply domestic demand and exports next year, but the nation has large
reserves on irohich to draw~
Now that both the House and Senate have passed bills providing for an increase in the CCC's lending authority, it is expected that a price support program
for wheat will be announced shortly.
There is one bright note in the wheat picture, namely, that stem rust will
not cause serious damage to winter wheat this season. The USDA reports tha'.f°most
wheat has ripened or is in the hard dough stage as far north as Oklahoma City, except
in the Texas Panhandle.
Harvesting of winter wheat in the Southwest made further progress last
week, and increased quantities were received at Southwestern t erminals.
With the storage situation crucial in the Southwest, and the wheat harvest
under way, the CCC is reported to be considering a move to stretch the available
space by renting some of its steel bins to elevator operators.
The ECA has allotted to Italy $7.1 million for the purchase of U. s. "\heat
and flour, with delivery to be made between now and September 30.
C 0 RN


The advance in cash corn prices which began in February appears still unOn Tuesday, June 13, No. 2 i;rhite corn sold on the Fort Worth market for a

Humber 24

Wednesday, June 14, 1950
-Page 2


top price of $2.06-1/2 per bushel, which compares with $1.62 on February 2. The
price this week is 6-1/2 cents per bushel above the top price paid on the same day
last week.
On Tuesday of this week, No. 2 yellow corn sold for a top price of $1.71-3/4
per bushel at Fort ,North, which compares with$1. 75-1/2 a week ago and $1. 74 a month
Fort Worth corn prices are about 30 to 35 cents per bushel above a year ago,
but a few cents under the 1949 peak reached last July.
The Chicago Board of Trade reports that the visible supply of corn in the
u. s. increased over 1 million bushels last week, totaling over-4Irnillion bushels,
vs. 10 million a year ago.



Prices of barley in Fort Worth have°tended to weaken slightly for the last
several weeks. On Tuesday, June 13, a top price of $1.37 per bushel was paid, which
compares ·with ~pl. 44 a week and $1. 48 a month ago.
The trend in prices of grain sorghums was dovmward during May and early
June. From a top price of ~$2.40 per cwt. for No. 2 yellow milo in April, prices declined irregularly to only $2.17 on Tuesday of this week. Prices are about 20 cents
per cwt. below the level of a year earlier and only about one-half the price of two
years ago.

Prices of most classes of livestock onthe Fort Worth market have recovered
the losses experienced during the past two weeks, and a few classes have reached new
seasonal "highs".
Prices of hogs sold last week and early this week at a top price of ~20.00
per cwt., which is the highest price paid this year, although reached several times
previously. Prices are slightly below the levels of a year ago.
Prices of cattle arc at the highest levels of the year; however, much of
the increase has been due to seasonal influences.
On Tuesday of this week, slaughter steers brought a top price of $30.50 per
cwt., which compares $29.00 a week earli8rand ~~26.5'0 a year ago.
Slaughter heifers sold as high as $30.00 this week, or $J.OO over a week
earlier, and ~-above a year ago. Co~~, at a top price of $23.00, were at tho
highest level in 22 months.
---Lamb prices appear to have passed the spring peak. On Tuesday, June 13,
spring lambs sold for a top price of $27.50, which compares with aJo.5o the first of
the month. -Shorn lambs, at ~24.00, were off 50 cents for the same period.
TheAilierICan-appetite for meat is stronger now than at any time since the
summer of 1948, says the USDA. Thisi'Ssaid to be reflected in heavier demand at
the meat counter and in rising prices. However, the gain in demand is probably no
greater than the rise that has occurred in consumer incomes, the Department said.
The BAE reported last week that livestock over much of the eastern twothirds of TexaS'"are in very good flesh. Cattle are improving in the South and High
Plains, while ewes and lambs are carrying good flesh, except in local dry areas of
West Texas.
Fall clip mohair showed gains last week of 15 to 20 cents per pound, according to the PMA. Some sales in Texas reached as high as 80 to 82 cents for adult hair
and $1.00 to $1.06 for kid hair.
W. M. Pritchett
Agricultural Economist