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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS
Number 243

Wednesday, August 25, 1954

COTTON
On Monday, August 23, Middling 1$/16-inch cotton in the 10 spot markets
averaged 34.03¢ per pound, compared with 34':08¢ per pound a week earlier. Trading
during the week ended August 20 was more active, and reported sales continued to
increase, according to the U. s. Department of Agriculture.
Most gins in north Texas are becoming active, as harvest is progressing
rapidly upstate. First bales were reported from many counties in west Texas last
week. Current ginnings are being offered fairly freely by producers, with only a
small volume being placed in the loan.
Cotton ginned in Texas through August 15 was lower in grade and slightly
longer in staple length than that ginned last season, according to the quality
report issued by the USDA. Ginnings through August 15 amounted to 716,870 bales,
compared with 512,411 bales a year ago, the Bureau of the Census reported,
Movement of cottonseed to crushing mills has been heavy in the active
harvesting sections, according to the Agricultural Marketing Service's first cottonseed review for this season, Wagon lot prices of cottonseed paid to farmers in
Texas the week ended August 19 averaged $64.70 per ton. This is higher than the
average price of $55.70 per ton paid during the same period a year ago,

L I VE S T 0 CK
Receipts of cattle at Fort Worth and at other points around the major
marketing circle last week were far in excess of the previous week but trailed
year-ago figures by several thousand head.
Prices at the Fort Worth market on Monday, August 23, as reported by
the USDA, were as follows: Good and Choice beef steers and yearlings, $18.50 to
$22; Utility and Commercial, $12 to $17.50; Commercial cows drew $11 to $12;
Canners and Cutters, $6.50 to $9. Medium and Good stocker and feeder steers and
yearlings moved from $13 to $17, with Choice scarce.
Slaughter calves were active with Good and Choice killers clearing from
$13 .50 to $17; Utility and Comrnercial $10 to ~rl3. Medium and Good stocker steer
calves sold from $13 to $17.50, with a few Choice up to $19.
Butcher hogs were lower and Choice 180- to 250-pound barrows and gilts
brought $23.50.
-Good and Choice slaughter spring lambs cleared from $17 to $19; Cull and
Utility, $9 to $15. Medium and Good feeder lambs moved from $11 to $15.
POULTRY
The Texas broiler market on Monday, August 23, was steady to firm, re~orts
the Texas Department of Agriculture. Prices for broilers and fryers weighing 22 to
3 pounds were 25¢ to 26¢, mostly 26¢.
Placement of chicks on Texas farms for the week ended August 14 were 1,204,000.
This was 9% below the-previous week's placements and 3% below placements in the
corresponding week a year ago.
Chicks hatched in commercial hatcheries in Te~as during July were up 25%
from the same month a year ago, ~ccording to AMS. Production was 6,830,000 chicks,
compared with 5,461,000 in July 1953.

WOOL AND MOHAIR
Two cars of original bag Good French Combing and staple 12-months Texas
wool sold last week at $1.80, and two cars of Average to Good 12 months sold at
$1.75, according to reports received by the USDA.
During the week ended August 20, approximately 500,000 pounds of mohair
were ·sold in Texas at 66t¢ for Adult and $1.01t for Kid mohair. One car brought
67t¢ to '$1902t for Adult and Kid, respectively. Surplus Kid mohair brought from
$1.50 to $1.55, to the warehouse.
MISCELLANEOUS
An appeal has been made to the Western Traffic Association by the Secretary
of Agriculture for reduced freight rates to farmers and ranchers in seven drought
states - Arkansas, Colorado, Missouri, New Mexico, Oklahoma, Texas, and Wyoming.
This action was considered necessary because farmers, stockmen, and dairymen in
parts of these states must either transport hay into the areas or must move cattle
to grazing lands in other parts of the country. Reduced rates in drought areas
were in effect last year.
On July 21, twenty-three counties in Texas were designated as drought
counties, while twenty-six in Oklahoma were added on August 2. Aid plans, a
Federal-state cooperative hay distribution program, an emergency feed-grain
program, and FHA emergency loans are available to eligible farmers and ranchers
in drought designated counties.
Demand for farm products continues strong, reports the USDA in its The
Demand and Price Situation. Consumer incomes available for spending were at record
levels in the first 6 months of the year, and remained high in July. Consumers
continued to spend about
of their income for food. Exports of farm products
in the fiscal year beginning July 1, 1953, totaled 4% above a year earlier, with
exports of most commodities other than wheat above 1952-53. Shipments in April
and May were 14%and 15% higher than these months of 1953, and 36% higher in June.
Prices received by farmers through July averaged about 3% below a year earlier.
Farmers' cash receipts also were down 3% with most of the decline in crop receipts.
The decline in milk output from the peak in early June has been considerabi
larger than usual this year, according to the USDA. This decline occurred mainly
because of hot, dry weather during July. Price relationships also have been less
favorable for milk production than in the past several years. With this decline
in output, production of butter and cheese has declined and purchases by USDA have
dropped sharply.
Despite a decline of about one-fifth in milk prices the past 2 years, the
number of milk cows on farms has increased 5%, according to the USDA, The decline
in milk prices in the past 12 months, though less than in the preceding year, was
greater than the declines for most cost items and the prices of competing products.

t

W. M. Pritchett
Agricultural Economist