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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE

BANK

OF

Humber 330

DALLAS

Wednesday, April 25, 1956

PRICE SUPPORTS
FOR
COTTON
On April 17 the U, S. Department of Agriculture announced that the minimum
level of price support for 1956-crop upland cotton, basis Middling 7/8 11 , will be
~¢ per lb o, or 82!% of the current parity price for upland cotton. The 1956
crop of--eitra-long staple cotton will be supported at 55 .65¢ per lb., which is 75%
of the current parity price. The support prices for the 1955 crops of upland and
extra-long staple cotton were 31.70¢ and 55.20¢ per lb., respectively.

DAI RY

S UP P 0 RT

P RI CES

I NCR E AS E D

On April 18 the Secretary of Agriculture increased dairy support prices
for butterfat from 56.2¢ to 58.6¢ per-lb. and for milk for maYiUfa'Cturing purposes
from ~'.3 .15 to $3 .25 per cwt. These prices will be---rrleffect for the 1956~ dairy
marketing year, which ends March 31, 1957. The increases followed the President's
statement on April 16 that prompt administrative action would be taken to improve
farm income, with the supports for butterfat and milk for manufacturing purposes
raised to these levels. The new support prices represent 81% of the March 15 parity
price for butterfat and SL% of the parity equivalent for milk forrnanu:faeturing plir=
poses.-rrhe former price"S"""'represented 78% of parity for butterfat and 82% of parity
for milk for manufacturing purposes, as of early 1956.

CAT T 1 E

AND

C A1 V E S

0 N

F E E D

The number of cattle and calves on feed for market in the 14 major feeding
states of the Nation on April l-;-1956, is estimated at 4,231,000, reports the Agricultural Marketing Service:--This number reflects decreases of 16% from the January 1
level and 8% from the corresponding date in 1955. The number of cattle placed on
feed in the lL states during the January-March period this year was 3% smaller than
for the corresponding months a year earlier, while marketings of fed cattle were 13%
larger.
In Texas, the number of cattle and calves on feed as of April 1 was an
estimated 93,000, or 11% more than a year ago but 37% fewer than on January 1, 1956.
Large commercial feed lots in the State had a total of 56,000 cattle and calves on
feed on April 1 and were operating at a level 12% above that of a year earlier.
Cattle and calves being fed on farms and in feed lots with a capacity of fewer than
1,000 head were placed at 37,000, compared with 34,000 a year ago and 61,000 at the
beginning of this year. Marketings of cattle and calves from feed pens in Texas
during the January-March period in 195'6 totaled 98,000, and replacements were LL,000
head. During the corresponding months last year, marketings totaled 86,000, and
replacements were 38,000.
LIVESTOCK
Cattle receipts at Fort Worth on Monday, April 23, were the largest since
January, according to the AMS-:--T'°he supply is estimated a~J,700, compared with 2,700
a-week earlier and 5,700 on the corresponding date in 1955. Stocker cattle accounted
for the major part of the increase from the previous Monday - apparently as a result
of continued dry weather. Trading on slaughter steers and heifers was slow, and prices
for these animals were steady to weak. The cow market opened steady but was weaker
later in the day. Offerings of stocker cattle grading below Medium were difficult
to sell, and prices were unevenly lower than those in the past week. Commercial and

Good slaughter steers (mainly yearlings) sold at $15 to $19; Good yearling heifers,
~17 to $18; Utility cows, $11 to $12; and Good yearling stocker steers, $16 to
~;~ 17. 50 per cwt.
Monday's calf supply totaled an estimated 800, or 250 more than a week
ago but LOO fewer than at the same time last year. Prices of slaughter calves were
about in line with the previous week's close, but those for most stockers were unevenl
lower. Commercial and Good slaughter calves brought $15 to $19, and Good stocker
steer calves cleared at $16 to $18.
Hog marketings are placed at 1 3 100, which is 21% smaller than on the preceding Monday but is 22% larger than on the corresponding date in 1955. Prices for
butchers were 25¢ per cwt. higher than in the latter part of the past week, and those
for sows were steady to )0¢ higher. Most of the offerings were mixed grades - mainly
Gra.de No. 3 butchers, with average weights of 225 lbs. to 325 lbs. - which sold from
$14 to $15.50.
Monday's sheep and lamb receipts at Fort Worth are estimated at 11,JOO,
or the second highest supPfy of the current season. The receipts compare with 7,50C
a week earlier and 20,050 at the---s:ime time in 1955. Most sheep and lambs sold at
prices which were steady to strong as compared with those in the past week. Good
and Choice slaughter spring lambs brought $19 to $21 per cwt.
POULTRY
The major Texas broiler markets were generally steady to firm during the
week ended Fri~April 20, reports the State Department of Agriculture. Closing
priCes:rariged from 1¢ to 3¢ per lb. higher than at the previous week's close. The
following ~jices were quoted on the past Friday's market: South Texas, 22¢; east
Texas, 22¢, a few at 21¢; Waco, 21¢ to 22¢; and the Corsicana F.O.B. plant, 22 ¢ to
23 ¢ per lb. During the corresponding week in 1955, closing prices were: South
Texas, 26.5¢ to 27.5¢, mostly 27¢; east Texas, 25¢ to 26¢, mostly 26¢; Waco, 26 ¢;
and the Corsicana F.O.B. plant, 27¢ per lb.
On Monday, April 23, broiler markets were fully steady in east Texas and
we re steady to firm in south Texas and the Waco-Corsicana area. The following prices
were quoted: South Texas, 22¢ to 23¢, mostly 23¢; east Texas and Waco, 22¢; and the
Corsicana F.o.B. plant, 22.5¢ to 23¢ per lb.

BROILER CHICK
PLACEMENTS

Area

Week ended
April 14, 1956

Percentage increase fr or:
Comparable
Previous
week, 1955
week

Texas.
Louisiana ••

2,151,000
386,000

2
6

17
41

22 states ••

26~7602000

2

20

o ••••

J. Z. Rowe
Agricultural Economist