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AGRICULTURAL NEWS OF THE WEEK_ _ _ _ _ _ _ _ _ _ _ _ _Wed~esday," August 23, 1950

Federal Reserve Bank of Dallas
Cotton prices have fluctuated gene:rally within a range of about 1 cent
per pound during August, or since the Jrea.r 's high of 39.05 cents per pound for
Middling 15/16-inch staple, 10-market average basis, was paid on July 28. On
Tuesday, August 22, the comparable price was· 37.98 cents per pound, or slightly
higher than a week· ago.
The PMA reports that mill demand for cotton for prompt shipment was good
last week. Offerings of old--crop cot-ton increased; export inquiries were numerous.
Repay1Uents on 1949-crop cotton totaled 93,700 bales in the week ended
August 10, leaving Ioans outstanding on 293 ,500 bales.· .
The indicated supply of cotton in the U. s. for the current season is
about 16. 8 million bales, consisting of 6.S million bales in the carry-over, a
crop forecast at the equivalent of about 10.l million running bales, and imports
of around 200,000 bales. This compares with the 21.5 million bale supply last
A high official of the USDA said last week that sales of 1948-crop pooled
cotton will continue uas long as people want to buy it. t1 He also said that if the
CCC stopped sellj_ng 191!.8 supplies "the price of cotton would skyrocket -- and we
are trying to keep prices in check. 11
The USDA estimates that cotton exports for the 1950-51 season, which began August 1, will total 11 at least 5 million bales." Demand abroad will remain
strong, the Department said, if countries abroad can find th~ dollars with which
to buy the U. s. fiber.
W ff E AT
Wheat prices on the Fort Worth Grain and Cotton Exchange continue to hold
within a narrow range. On Tuesday of this week, No. 1 hard wheat sold for a top
price of $2.43-J/4 - 1 cent below a week earlier.
The Secretary of Agriculture announced this week that i}rice supports for
1951-crop wheat will be 90 percent of parity but not less than $1. 99 per bushel :..
the· support level now in effect for the 1950 crop. Howeve..i.', the Government will
not pay storage charges on the wheat it buys from the 1951. crop. This payment,
amolmting to 7 cents per bushel for a storage year, has been paid for several years.
Exports of wheat and wheat products during July amounted to the equivalent
of about 19 million bushels, compared with almost 31 mi~lion in the same month last
Prices o~ corn on thB Fort Worth grain market have shovm mixed trends
during the past 2 ·we8r(s; yellow corn has risen, while white corn has declined. On
Tuesday, August 22, No. 2 yellow corn sold for a top price of (pl.66-1/2 per bushel,
compared with $1.64-1/2 a week ear1.ier. No. 2 white corn, on the oth~r hand, continued to decline, falling to $2.01-1/2 per bushel, compared with $2.16-1/2 a ieek
earlier and $2.JO 2 weeks ago.
Prices of grain sorghums have held within a range of about 10 cents per
cwt. for the past 2 weeks. On Tuesday o.f this week, Fo. 2 yello1¥ milo · brought a
top price of $2.18 per cwt., the same as .a ,.reek earlier.
Rice quotations at Texas and Louisiana common points s:1ow Zenith at ~9.50
and Blue Bonnet at $13.00 per c-vit ..
IJivestock prices on the Fort Wm th market have made little change during
the past week, with the principal exception of hog pl"ices. On Tuesday of this week,

Number 34

Wednesday, August 23, 1950
Page 2


hogs sold for a top price of $24.50 per cwt. - the highest level reached in almost
although only 50 cents above prices paid on many days during July and
During the past we.ek, calves advanced $1. 00 per c1,11rt., while heifers and
cows rose 50 cents. Tuesday's top prices: slaughter steers and heifers, $28.50;
"C'OW'S, $22.00; slaughter calves. and feeder and .stocker steers, $30.00; ancl spring
lambs_, $28.oo~


The very limited supplies of wool became even more scarce in the Southwest
and in Boston last week, according to the PMA.
Small amounts of wool still left jn Texas brought strong prices. Original
bag wool sold at 85 cents per pound, grease basis. Strictly fine staple wool sold
in Boston at around $2.10 per clean pound, delivered.
Prices received by domestic wool growers for shorn wool this year reflect
the sharp rise in wool prices in foreign markets since last October, says the USDA.
The average price received by growers in July 19)0 was 57.1 cents per pound, grease
basis, the highest since October 1918. Domestic wool prices probably will continue
high for some time, says the Department. World conSUinption continues to exceed production; domestic wool p·r oduction in 1950 will be about the same as the record low
of last year; domestic mill consumption is likely to be somewhat higher than last
year; and the ratio of stocks to the weekly rate of mill consumption is substantially
below the 1935-39 level.
Prices paid by Dallas wholesalers to farmers and other producers for
poultry and eggs held steady last week at prices prevailing for the past several
Commercial hatchery production in Texas during the month of July was
2. 8 million chicks - the largest output on record for the month, according to last
week's report from the BAE in Austin.
The number of laying hens on Texas farms during July averaged over 17.7
million, compared with 17.6 million in the same month last year. Layers on farms
averaged 13.J eggs each during July this year, compared with 13.4 a year earlier.
Retail sales of tractors and farm equipment during July rose to $258
million, an increase of $58 million over June, accoraing to a farm equipment magazine. "Scare buying 11 on the part of farmers is regarded as responsible for the 29percent increase over June. Prior to July, sales of tractors and farm equipment
in 1950 had been running 3 percent below sales for the first 6 months of 1949.
Taxes levied on farm real estate by state and local governments in 1949
(payable largely in 1950) were at nffi~ record levels for the United States as a
whole. The total amount of such levies is estimated at $699 million, compared with
$651 million in 1948 and $600 million in 1947. Expressed as a per-acre figure, the
1949 levies amounted to 61 cents, which compared with the previous record of 58
cents in 1928 and 1929. Related to full values of farm real estate, the 1949 tax
levies amounted to $1.10 per $100.00, vs. $1.00 in 1948 and $0.90 in 1945 and 19h6.
Vl. M. Pritchett
Agricultural 7conomist