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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERVE Number 337 BANK OF DALLAS Wednesday, June 13, 1956 WOOL INCENTIVE PAYMENTS The u. s. Department of Agriculture urges wool growers to sell their wool at the highest possible price. Incentive payments for the 1956 wool clip will be made at one percentage rate for the country as a whole; therefore, the higher the price the individual grower gets for his wool in the market, the greater his incentive payment will be. For example, if the U. s. average price for wool during the current marketing year turns out to be LL¢, in order to increase the growers' average price to the 1956 incentive level of 62¢, the average payment would need to be increased by 18¢ per lb., or L0.9%. Consequently, the grower who sold his wool for JO¢ a lb. would get an incentive payment equivalent to only a little more than 12¢, bringing the total income from his wool to around L2¢ per lb. If the grower were able to sell his wool for 50¢ per lb., he would get an incentive payment equivalent to over 20¢, which would bring his total income from his wool - including the payment to around 70¢ per lb. C C C P R I C E S U P P 0 R T P R 0 G R A 1'1 As of April JO, 1956, the Commodity Credit Corporation's investment in price support--cc;mmodities-t"otaled $8 ,6JJ,L65,ooo, according to the USDA. Of the total investment, loans outstanding accounted for $2,622,236 ,000, including ~p822,Sll,OOO of loans financed by lending agencies, and the cost value of inventories, $6,011,229,000. On the corresponding date last year, the CCC's investment in price support commodities totaled ~~7, 261,JJS, 000, of which loans outstanding amounted to rr 2,692,553,ooo and inventories were rµL,568 , 785,ooo. Price support operations in upland cotton, corn, tobacco, and wheat accounted for most of the loan total. W0 R 1 D 1 I V E S T 0 C K N U MB E R S World cattle numbers at the beginning of 1956 are estimated at a record 918rriIITion, or 1% largert han a year earlier-arld 22% greater than the 1936-LO--average, according to the Foreign Agricultural Service . The large increase in cattle numbers in recent years will be reflected in continued large world production of beef. Beef production could increase even more sharply if drought or other unfavorable conditions should cause liquidation of herds in one or more of the major beef-producing countries. World sheep numbers continued to increase during 1955 for the ninth consecutive year:--The estimated 910 million head on hand at the beginning of 1956 is 2% larger than a year earlier and 22% above the 1936-LO average, according to the FAS. Increases in sheep numbers during 1955 occurred in all of the principal sheep-producing areas of the world except Canada and the United States . Sheep numbers in the United States appear to have stabilized at about LO% of the pre-World War II level, World hog numbers increased slightly during 1955 to reach an all-time high of 373 million at the beginning of 1956, or about 1% more than a year earlier. The total is 27% greater than the prewar level and 52% above the low level of 1946-50. POULTRY During the week ended Friday, June 8, Texas commercial broiler markets opened at prices which were 1¢ to 2¢ per lb. lower than the previous Friday's close. -:All markets declined<iuring-the-week as trading progressed but showed some light strength toward the close of the market on June 8. Closing prices which were mostly 2¢ per lb. lower than during the last week - were: South Texas, 20¢ to 20.ST"; mostly 20¢, and east Texas and Waco, 19¢ to 20¢ per lb. During the corresponding period in 195.5, closing prices were: South and east Texas, 27¢ to 28¢, mostly 28¢; Waco, 27¢; and the Corsicana F.O.B. plant, 27 .5¢ per lb. On Monday, June 11, broiler markets were fully steady in south and east Texas and steady in the Waco-Corsicana area. The following prices were quoted: South Texas, 20¢ to 21¢, mostly 20¢; east Texas, 19¢ to 21¢, mostly 19¢ to 20¢; Waco, 19¢ to 20¢; Corsicana, at the farm, 20¢; and the Corsicana F.O.B. plant, 21¢ per lb. Percentage change ..££2!!! Comparable Previous week week, 1955 Area Week ended June 2 1956 Texas •••••• Louisiana •• 2,280,000 329,000 L -L 29 28 22 states •• 27,66L,OOO 3 22 BROILER CHICK PLAC ~;MENT S 1 I VE S T 0 CK The cattle supply at Fort Worth on Monday, June 11, totaled an estimated 6,000 - the largest receipts since OCtOber 1955, reports the Agricultural Marketing Service. After a slow start on slaughter steers, trading on all classes became fairly active, and prices were mostly steady with those in the previous week. Good slaughter steers sold at ~Pl? to $18.50; Utility cows, $10.)0 to $12.2); and Good yearling stocker steers, $1) to $17.)0 per cwt. Monday's calf receipts are placed at l,OOO, compared with 650 a week earlier and 950 on the corresponding date in 1955. Trading was fairly active. Choice slaughter classes were scarce; Good grades brought $16.)0 to $18.)0 per cwt. Good stocker steer calves cleared at $1).)0 to ~18.50; some Choice grades sold at ~~19 to $21.50. Hog supplies totaled an estimated 1,700, which is 200 fewer than a week ago but. 800 more than on the cor,responding date a year earlier. Early bids on butchers were lower than in the latter part oft he past week; however, most slaughter hogs sold at steady prices, and some sales were 2)¢ per cwt. higher. No. 1 through No. 3 Grades of 200- to 250-lb. butchers brought $16.75 to ~17.25, with most offerings quoted at ~17. Sheep and lamb marketings are estimated at lL,000, or 22% smaller than those a week earlier but 23% larger than at t he same time in 1955. Receipts of sheep and lambs at Fort Worth continue much larger than at any other livestock market. A few early sales of slaughter lambs and yearlings were $1 lower than in the previous week. However, later trading was fairly active, with slaughter lambs and yearlings bringing weak to 50¢ per cwt. lower prices; other classes held steady. Good and Choice slaughter spring lambs brought ~~21 to $24. J, z. Rowe Agricultural Economist