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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS
Number 254
Wednesday, November 10, 1954
COTTON
The November 1 cotton report of the u. s. Department of Agriculture,
released on November 8, indicates a 1954 crop of 13,206,000 bales, up 695,000 bales
from the October estimate, Each of the cotton producing states, except North
Carolina, reports an increase in cotton production prospects during October,
Yield per ~ in the u. s. is indicated at 329 pounds, a new all-time
high that rs-s-pounds above the previous record established last season,
November 1 estimates of cotton production in Southwestern states, and
changes from October estimates "{all figures in bales): Arizona 755,000, up 25,000;
Louisiana 555,000, up 2),000; New Mexico 275,000, up 20,000; Oklahoma 295,ooo, up
35,000; and Texas 3,850,COO, up 275,000.
Yields per acre in Texas (242 pounds), New Mexico (657 pounds), and
Arizona (899 pounds) are well above those of 1953, while yields per acre in
Louisiana (387 pounds) and Oklahoma (151 pounds) are below those of a year ago.
Spot cotton prices on Monday, November 8, were slightly below a week
earlier. Middling 15/16-inch cotton in the leading spot markets averaged 33.93¢
per pound, compared with 34.01¢ the week earlier and 34.06¢ 2 weeks ago.
Agricultural Marketing Service described the cotton situation in the
Southwest last week as follows: Trading in spot cotton was seasonally active.
Spot prices were slightly lower and sales increased. Merchant demand was fair to
good. Loan entries were increasing. Domestic and export inquiries were not too
numerous. ''Jeather conditions were not so favorable.
Cottonseed prices in wagon load lots at the gins in Texas last week averaged
$58.JO per ton, or about $1 per ton higher than in the previous week, according to
N1S. Gin yard prices a year ago averaged $53.80 per ton.
The USDA announced last week acreage allotments for 1955-crop extra long
staple cotton. The national allotment is 46,154 acres. Acres alloted for Southwestern states: Arizona, 18,472; New Mexico, 8,529; and Texas, 15,964. Farmers who
grew extra long staple cotton in 1954 in designated counties will vote December 14
in a referendum to determine whether marketing quotas will be operative for the
1955 crop of extra long staple cotton.
1 I VES T0 CK
Prices of Good and Choice stocker cattle on the Fort 1·Torth market last
week were steady to 50¢ lower; prices of lower grades declined as much as $1.
Stocker cows, on the other hand,were in strong demand, and prices advanced around
~l.
Slaughter calves closed 50¢ to $1 lower, primarily as a result of heavy
calf receipts at the leading livestock markets in the Nation. Slaughter steers
and yearlings classified as Good or Choice sold steady to 50¢ higher, while other
grades were steady to weak.
Receiptsof hogs at the leading livestock markets last week were off from
the previous week and prices strengthened. Butcher hogs on the Fort Worth market
moved up SO¢ and closed with a top of ·~19.SO.
Sheep and lamb prices in Fort irJorth were strong to 50¢ higher last week,
with exports up ~$1 higher.
ComQercial meat production in Texas during September is estimated by the
USDA at 109,463,000 pounds, up 3% from a year earlier. More cattle, hogs, sheep,
and lambs but fewer calves were slaughtered inSeptember, compared with the same month
last year.
The Agricultural Marke t ing Service office in Austin reports the followin
average prices per cwt. received by Texas farmers for livestock en OctcbEr lS, yearfigures in parenthesis: Hogs, $18.80 ( ~21.30); beef cattle, $12.70 ($10.50);
calves, $15.80 ($11.60); sheep, $6.90 ($7.20); and lambs, ~15.20 ($13.80).
MI S C E L 1 A N E 0 U S
The Index of Prices Received by Texas Farmers (prepared by AMS) on
October 15, 19~aS-264% of the 1910-14 base. This compares with 262 on
September 15 and 259 on October 15, 1953.
In reviewing ~he financial outlook for farmers in 1955, the USDA says
that current prospects suggest that the financial situation in agriculture next
year will not differ greatly from 1954. Net realized farm income should approach
that of 1954, and the value of fann assets may be slightly lower but change from
1954 should not be large. However, farmers as a group will continue in 1955, and
probably in several later years, to face the problem of adjusting to the costprice squeeze in agriculture.
The USDA says that total farm production expenses in the U. s. are slight
lower this year than in 1953. The 1955 outlook is for some further slight decline
Nevertheless, farm production expenses will be more than three times as high in 195~
as in 1940.
Farm cost ~ expected in 1955 relative to 1954 are as follows: Farm wage
rates and interest rates - slightly lower. Seed, and feeder and replacement livestock - slightly lower. Motor fuel, building and fencing materials, feed and
fertilizer - about the same. Farm machinery - about the same, discounts remaining
substantial. Taxes per acre - slightly higher.
Record food supplies are in prospect for 1955. Consumer demand for food
is expected to continue strong. Per capita consumption of food in 1955 likely
will equal that of the current year, only slightly under the 1946 record. During
the late fall and winter months of 1954-55, large supplies and the lower prices
now prevailing will encourage higher consumption rates than in late 1953 for pork,
butter, poultry, and eggs, several major fresh fruits, and processed fruit juices.
Agricultural exports from the u. S. in the first 8 months of 1954 were
valued at $1,860 million, compared with $1,773 million in the corresponding month
of 1953 - a gain of 5%.
Texas broiler markets last week generally opened weak and closed steady,
according to the Texas Department of Agriculture, Closing prices at the farms
were mostly 20¢ to 21¢ per pound for broilers or fryers weighing 2! to 3 pounds,
compared with 23¢ to 24¢ a week earlier.
Two cars of fall Adult mohair sold at 64~¢, delivered to Boston, while
another quantity of Adult mohair brought 68¢ in the local market.
W. 'M. Pritchett
Agricultural Economist
@FedFRASER