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A~G_R~I_C_U_LT~~~~--1~~-~-IB~O_F~IB_E~~-J_E_K~~--~~~~~~~-~~-We~esd~, Augu~t 2,
Number 3,1,


Federal Reserve Bank of Dallas
Cotton price~ declined early this week; Middling 15/16 inch staple averaged
38.22 cents per pound in the 10 designated markets on Tuesday, August 1, compared with
39.05 cents on Friday of last week. However, Tuesday's prices were more tha~ 4 cents
per pound above levels of a month ago.
The PMA has announce~ t~at the ~erage loan rate for Middling 15/16 inch
cotton in 1950 will be 29.45 cents per pound,, gross weight. 'I'he average loan rate
last year was 29.43 cents per pound.
The penalty rate for 1950-crop cotton produced on a farm in e·xcess of the
farm marketing quota wiJl-be 15.S cents per pound, which is 50 percent of the parity
price for cotton as of June 15. Until the penalty on the farm marketing excess is
paid, all cotton produced on the farm and marketed by the pr~ducer is subject to the
penalty, and a lien on the entire crop wil1 be in effect in favor of the U. s.
· Demand for cotbon textiles continued strong last week, and prices for most
construction advanced for both nearby and future delivery, according to the PMA. Inquiries for cotton textile goods increased, and the volume of sales was somewhat
largerthan in the prev:i.ous week • . However, a number of firms remained out of the
market pending further stabilization in the raw cotton·market and in prices for
textile products.
CCC pooled stocks of cotton, which amounted to 3,338,000 bales as of June
30, are of--v€ry good quality, according to a report released by that agency. Over 54
percent was or higher in grade; 37 percent was Strict Low MiddL ing and equivalent grades.
The House has passed and sent to the Senate a bill which would assure federal
controls over cotton crops in 1951 and 1952 •





Wheat prices on the Fort Worth Grain and Cotton Exchange have weakened cons1dernbly during the past week. On Tuesday, August 1, No. 1 hard wheat sold for a
top price of $2.1..i.4 per bushel - about 10 cents under a week earlier.
The carryover of old wheat in all positions in the U. s. on July 1, 1950,
totaled 417 million bushels-:-more than one-third larger than-ay:ear earlier. Stocks
in Texas on July 1 totaled 39 million bushels, vs. 13 million a year earlier.
The USDA reports that sales of u. s. wheat under the first year's operation
of the International Wheat Agreement will fall short of the country• s quota by about
70 million bushels, or 30 percent.
Corn prices in Fort Worth have declined sharply from the high levels of a
Week ago. OilTuesday of this week, No. 2 white corn sold for a top price of $2.60 per
bushel - off 15 cents fl'om the same date last week. No. 2 yelloyr corn sold as high as
$1,78 per bushel - off 2 cents.
About 1,421 million bushels of .corn remained in storage in the U. s. on
July 1 - 10 percent more than the previous-record qnanti ty of a 'year earlier.
Prices. of oats and barley on the Fort Worth market have remained unchanged
for the past week. T"Of)prices: 95 cents and $1.42 per bushel, respectively.
'rhe top price for No. 2 yellow milo :J.n Fort Worth on Tuesday of this ·.reek
was .$2. 25 per cwt. -:::10 cents under a \veekago.

1 I VE S T 0 C K
The only notei:rnrthy change in prices of livestock on the Fort Worth market
the past week was an increase of ~l.00 for spring lambs, or to $30.00 per cvrl.. Prices
of other classes of livestock on Tuesday were the same as reported in this bulletin
last week.

Number 31 ~

Wednesday, August 2, 1950

The USDA reports that this year's lamb crop is the smallest since it started
keeping records in 1924. The crop estimate ;as-placed at 18,431 1 000 head, or about 2
percent smaller than last year.
The movement of livestock out of Texas during June was at a much higher ra~e
than in the name month last year, · accord~ng to last week's report from the BAE in
Austin. Shipments of cattle and calves totaled almost 140,000 head, or 20 1 000 head
above June 19Li9. Sh:i,.pments of sheep totaleq 285,000 head - up 35,ooo.
Prices paid by Dallas wholesalers to farmers and other producers for poultry
and eggs remained relatively stable during the past week. The only change reported
was an ·increase of 2 cents, or to 22 cents per pound, for ~~ weighing 4 pounds or
over. ·
Local i·1-yers are bringing from 25 to 30 cents per pound. Arkansas fryers
are selling for about 34 cents per pound.
The USDA announced last week that it will continue through September to
purchase dried eggs to support prices to producers. The Government has purchased
about-rb million pounds of dried eggs thus far this year, compared with 55 million
pounds in the same period last year.

MI S C E L L A N E 0 U S

Th~ Government has bought

120 million pound'S"9of butter and 77 million pounds

of cheese thus far this year in attempting to support prices.
A total of 317 1 000 colonies of bees were on hand in Texas on July .l, 1950,
according to the BAE. .This was an increase of 2 percent over a year earlier.
The Government has taken steps to provide ample sugar supplies for any .
possible contingency by purchasing remaining Cuban reserves of about 600 1 000 short
tons. This sugar, plus our regular deliveries, said one Government official, is more
than we conceivably ~111 need.
The National Fertilizer Association, on the basis of data from 13 reporting
states, anno1mced that almost 7.4 million tons of fertilizer ~ere sold during the
first 6 months· of 1950, or 5 percent mo:re than in the same period year.
As a step toward curtailing the use of building materials for non-defense
purposes and preventing government loans from being used to pay inflated construction
costs, the FHA has announced that hereafter ~ farm building loan will be approved only
when the amount of the loan, plus any other indebtedness on the farm, does not create
a total debt in excess of 95 percent of the appraised value of the farm. Previously,
a borrower's real estate debt could be as high as 100 percent of the value of the
farm. Also, all loans in the future will be limited to 95 percent of the building
costs estimated as of July 1, 19.50.
Feedstuff markets have advanced sharply during .recent weeks. The index of ,
vrholesale feGdst11 !"'f prices, as computed by the USDA, reached 258 on July 18, which
compares 231 a year ago. The feed grain index was at 218, compared with 197 a
year earlier.
The Viar in Korea, added to already heavy demand for farm products, caused a
6-1/2 percent increase in prices received by U. s. farmers during the month ended Jul1
15 - the sharpest monthly increase since Liiarch 1947. u. s. farmers generally '
ceiving above parity prices for their produce.

w. M. Pritchett
Agricultural Economist