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9

AGRICULTURAL NEWS OF THE WEEK

~~..-------F-E_D_E_R_A__L_R_E_S__E_R_V_E__B_A_N__K_O__F~D-A_L_L_A_S_________________
Number 320

Wednesday, February 15, 1956

SUPPORT
P R I CES
The u. s. Department of Agriculture has announced the 1956 support price
levels on many farm commodities. The following table shows the minimum dollar-andcents support levels and percentages of parity which have been announced for various
commodities produced in the states of~he Eleventh Federal Reserve District (Arizona,
Louisiana, New Mexico, Oklahoma, and Texas) for 1956 and the 1955 comparisons,
1956
Commodity and unit

.............
...........

Support
price

Wool, lb. ••••••••••• $ .,62
Mohair, lb.
,.70
,
Oats, bu.
,.59
Barley, bu, ••••••••••
•.93
1 •.16
Rye, bu, •o••••••• ...,,.
1.,80
Grain sorghums,cwt• ,,
Wheat, bu, I 0 I · I I I I I • I•
1,81
Rice, cwt. • •••••••••••
L.oL
Cottonseed, ton
LS •.oo
3,09
Flaxseed, ,u. •••••••
1,0_5"
Corn, bu.~ •••••••••
I>

......

1955
Percent
of parity
106
92
70
70
70
70
76
75
70
70

Support
price
ycf.·

..62
•.70
•.61
..9L
1.18
1..78
2,.08
L..66
46.00
2,.9]
1.19

Percent
of parity
106
91
70
70
70
70
82 • .5
85
6)
65

1/ In noncommercial areas. Corn in noncommercial areas is supported at 75%
of-the commercial rate. In the commercial areas, 1956-crop corn is to be
supported at 81% of parity, compared with 87% for the 1955 crop.
EXPORT
CREDIT
SALES
PROGRAM
On February 7, 1956, the USDA announced that the Commodity Credit Corporation was initiating, effective immediately, a program which will extend credit to
expQrters. This change in policy is in line with intensified efforts in recent~
months to reduce Government holdings of surplus agricultural commodities. Previously - except for barter transactions - the policy of the CCC had been to sell for
cash,
WORLD
COTTON
PRODUCTION
World cotton production in the 1955-56 season is indicated at a record
high of 40,3 million bales, according to latest estimates of the Foreign-Agricultural-Service. A crop this size would be 4% above the 1954-55 output and about
57% larger than the average world production in the immediate postwar period of
1945-49 •.
1 I VES T 0 CK
A moderate supply of 2,soo cattle was received at Fort Worth on Monday,
February 13, reports the Agricultural Marketing Service. This compares with receipts of~,152 on the previous Monday and 3,LL9 at the same time in 1955. Fed
steers and heifers comprised the major part of the cattle supply, with yearlings

predominating. Prices of slaughter steers and heifers were mainly steady; however,
some strength was evident from the previous week's low· quotations. Most Good fed
steers and heifers sold at $15 to $17; beef cows, $12 to $12.)0; and Medium and
Good stocker and feeder steers, $;13.50 to $17 per cwt.
Monday's calf receipts totaled 600, or 7L% more than the small supplies
of a week earlier but were 37% fewer than on the corresponding date last year.
Prices were mostly steady with the previous week's close; however, those for some
stockers were stronger. Commercial and Good slaughter calves cleared mostly at
~;a4 to ~~17 •.50, and Medium and Good stocker steer calves brought $14 to $18.
Hog marketings were more than three times larger than the very small
offerings 011'the previous Monday and were 70% above those on the comparable date
in 1955. Trading was slow in getting started, because of lower bids. Prices of
butcher hogs were 25¢ to 75¢ per cwt. below those in the latter part of the past
week, with most sales 50¢ lower. Most of the hogs were mixed No. 1 through No. 3
Grades with average weights of 200 to 260 lbs. and sold at $13.25 and $13.50.
Sheep and lamb receipts are estimated at 6,ooo, compared with the past
Monday's very small supply of 1,626 and with 4,954 at the same time last year.
Trading was very slow as a result of sharply lower bids. Most slaughter lambs
brought prices tnat were 50¢ below those in the latter part of the preceding week;
some sales were 75¢ lower. Prices of feeder lambs were steady to weak. Numerous
shipments of Good and Choice 85- to 100-lb. No. 1 and fall-shorn slaughter lambs
sold at $17 •.25 to $18, and some Good and Choice wooled lambs brought $18 per cwt.
POULTRY
During the week ended Friday, February 10, the major Texas broiJer markets
opened weaker than on the preceding Friday tut closed steady, according to the AMS.
Trading was moderate in south and east Texas and normal in the Waco-Corsicana area~
Closing prices were unchanged to 1¢ per lb. lower than in the previous week, with
the following prices quoted: South Texas, 21¢; east Texas, 20¢ to 21¢, mostly 20¢;
Waco, 20¢; and the Corsicana F.O.B. plant, 21.5¢ to 22¢. During the corresponding
period in 1955, closing prices were 25¢ in all the areas.
Broiler chick placements on Texas farms totaled 1,886,000 during the
week ended Februar~according to--:the AMS. These placements reflect increases
of 4% from the previous week and 41% from the corresponding period in 1955. Of
the total placements, 86% were hatched in Texas and 14% were shipped in from other
states.
BROILER PRODUCT ION
Commercial broiler output in the 22 important broiler-producing states
totaled 94~ million birds during 1955, reflecting an increase of 3% from 19SL, reports the Al1Se The average price received for broilers in 1955 was 25.1¢ per lb.
live weight, compared with 22.9¢ in 1954. Gross income from broiler sales in the
principal producing states in 1955 amounted to $722,170,000, which is 12% more than
the year-earlier income.
In Texas and Louisiana - the major broiler-producing states in the Eleventh
District - co~ial broiler output in 1955 totaled 90,595,000, or 9% more than in
1954. Gross income from the sale of these birds in 1955 totaled t 69,131,000, compared with $56,374,000 a year earlier.

J. Z, Rowe
Agricultural Economist