View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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