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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE

BANK

OF

DALLAS

Wednesday, June 20, 1956

Number 338

F E E D GR A I N S UP P 0 R T P R I C E S I NC R E AS E D
On June 8 the U. S. Department of Agriculture announced increased support
prices for 1956-crop oats, barley, grain sorghums, and rye. The new support prices
reflect 76% of the re8P8Ctive parity-:pr:ices for the crops on May 1, 1956, as required by provisions of the Agricultural Act of 1956. The following are the national average dollars-and-cents support rates for 1956 crops of the commodities.
·
Oats
65¢ per bu.
Barley
- ~1.02 per bu.
Grain sorghums - ~~1.97 per cwt.
Rye
- ~;il.27 per bu.
Support rates i)reviously announced for the 1956 crops of these feed
grains reflected 70% of the January lS parity prices and were: Oats, 59¢ per
bu.; barley, 93¢ per bu.; grain sorghums, ~ 1.80 per cwt.; and rye, ~1.16 per bu.
The revised national average support rates for the 1956 crops compare
with the following average support prices for the 19 55 croDs: Oats, 61¢ per bu.;
barley, 9L¢ per bu.; grain sorghums, ~~1.78 per cwt0nd rye, ~·i.18 per bu.
RATES ON CERTIFICATES
OF
IITTEREST
On June 13 the USDA announced that certificates of interest to be issued
in connection with the 1956-crop cotton price support loanpro ram will bear interest at the rate of 2 3/L% per annum. Lending agencies will also continue to receive
a fee of 8¢ per bale (which is provided in the lending agency agreement) to cover
costs of disbursing and scheduling thP loans. The rate of interest charged farmers
obtaining price support loans on their commodities ill remain 3 1/2% per year.
Similar action with respect to 1956-crop loan programs for grain and
related commodities was taken on June 7. The rate of compensation payable to lending agencies for financing and servicing Commodity Credit Corporation price support
loans on these commodities is 3 l/L% per annum.
These are the same rates which were in effect for loan disbursements
under the 1955 crop programs.
1

WINTER
WHEAT
The Nation's 1956 winter wheat crop is estimated, as of June 1, at 670
million bu., or 2% below the previoilSITiOnth's forecast. The 1955 output was 705
million bu., and the 10-year (19L5-5L) average was 873 million bu, The indicated
yield per harvested~ in 1956 is placed at 18.7 bu., compared with 20,9 bu.
harvested in 1955 and the 10-year average of 18.J bu,
In the four ma.ior wheat-producing states of the Eleventh Federal Reserve
District (Arizona, New Mexico, Oklahoma, and Texas)-,-the indicated production of
1956-crop winter wheat is placed, as of June 1, at 82,811,000 bu., or 11% larger
than the month-earlier forecast. A crop this size would be twice the small output
jn 1955 but 37% below the 10-year average.
LIVESTOCK
Cattle receipts at Fort Worth on Monday, June 18, were the 1argest since
July 19S5, according to the Agricultural Marketing Service. The estimated supply

of 6,600 compares with 6,000 on the previous Monday and 5,700 at the same time last
year. Most sales of stockers and feeders 1.'1"ere weak to tl per cwt. lower than at the
previous ''Jeek' s close; other classes of cattle sold at generally steady prices. Good
slaughter steers brought ~:as to fj)l9.50; most Commercial cows, $12 • .50 to (,13.25; and
Medium stocker and. feeder steers, ~~12 to ~~lL.
Monday's calf supply is estimated at 1,300, or LOO more than a week
earlier and 50 above the receipts on the corresponding date in 1955. Both slaughter and stocker classes of Good and better grades were relatively scarce and sold
at prices which were about in line with the previous week's close. Trading on
other calves was slow, and prices were weak to ~rl and more lower. Good slaughter
calves cleared at ~1 f)l6 to 1»18, and most Good stocker steer calves sold at $1) to .;1.18.
Hog marlrntinrs totaled an estimated 900, or 31% fewer than a week ago but
29% above the supply at the same time in 1955. Most offerings sold early; butchers
brought prices that were steady to 25¢ per cwt. lower than in the latter part of the
past week. No. 1 throuc:h No. 3 Grades of mixed 19)- to 250-lb. slaughter hogs were
quoted at ~16 to ~pl6.50, with most sales at fpl6.25.
Monday's sheep and lamb receipts are estimated at 8,300, compared with
lJ,600 a week earlier and 10,000 on the corresponding date last year. Old-crop
shorn lambs and yearlings accounted for almost half of the supply, and spring lambs
comprised nearly LO%. Choice slaughter classes were very scarce. Trading was slow.
Prices of shorn slaughter lambs and yearlings were 50¢ to ~n per cwt. lower than on
the previous week's market; other classes held mostly steady. Good and a few Choice
slaughter spring lambs brought mainly ns to 4'.;20.
POULTRY
During the week ended Friday, June 15, the major Texas broiler markets
opened fully steady and then gradually gainedstrength through mid-trading; late
trading was steady in all the areas. Closin~ prices were 1¢ to 2¢ per lb. higher
than in the preceding week. Friday's prices were: South Texas and Waco, 21¢,
and east Texas, 20¢ to 22¢, mostly 21¢, per lb.
On Monday of this week, broiler markets were fully steady in south Texas
and steady in east Texa"Sai1d the Waco-Corsicana area. The following prices were
quoted: South Texas, 21¢ to 22¢; east Texas, 21¢, with a few at 20¢; Waco, 21¢;
Corsicana, at the farm, 20.5¢ to 21¢; and the Corsicana F.O.B. plant, 21.5¢ to 22¢
per lb.

Area

Week ended
June 9, 19 56

Percentage change from
Comparable
Previous
week
week.9 19)5

BROILER CHICK
PLAC~~ENTS

Texas ••••••
Louisiana ••

2,308,noo
371,000

1
13

23
11

22 states ••

27,526,000

0

21

J. z. Rowe
Agricultural Economist