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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE

BANK

Number 350

OF

DALLAS

Wednesday, September 12, 1956

AGR I CUL T UR AL P R I C E S
T EX AS
The mid-August index of prices received by Texas farmers and ranchers at 250% of the 1910-14 average :-was 2% lower than-a: month earlier and almost 3%
below the August 1955 level, according to the U. s. Department of Agriculture .
Decreases in prices received for corn, rice, Irish potatoes, cotton, cattle, sheep,
lambs, and chickens much more than offset higher prices received for wheat, sorghum
grain, sweet potatoes, hogs, and hay. The all-crops index on August 15 was 249% of
the 1910-14 average - 3% lower than a month earlier but unchanged from a year ago.
The livestock and livestock products index declined only 1 point from mid-July but
was 6% lower than on August 15, 195'5 . - -

F ARM

I N C 0 ME

Cash receipts from farm marketings in the states of the Eleventh Federal
Reserve District (Arizona, Louisiana, New Mexico, Oklahoma, and Texas) totaled
$1,193,577,000 during January-June this year, or 2% more than in the corresponding
months in 1955, reports the USDA. Receipts from livestock were 3% larger, while
those from crops were about the same as a year earlier.

CCC

P RI CE

S UP P 0 RT

P R 0 GRAM

As of June JO, 1956, the investment of the Commodity Credit Corporation
in price support-commO'dities-amounteClto $8,257;308,000, according to a recent
report of the USDA. Loans outstanding accounted for ~,,2,285,180,000 of the investment, and the value of inventories was $5,972,128,000. As of June 30, 1955, the
CCC's investment in price support commodities totaled $7,069,277,000, of which
loans outstanding amounted to $2,097,81L,OOO, and inventories were ~~L ,971,L6J,OOO.
According to the report, the net realized loss on CCC price support
operations for the fiscal year ended June JO, 1956, totaled ~~974 , 767 ,365. For the
fiscal year ended June JO, 1955, the program loss on price support operations was
$799,061,464.
R IS E
CONTINUE TO
FARM
DEBT S
Both farm-mortgage debt and nonreal-estate debt of the Nation's farmers
rose again in 1955, according--:SO-the Agricultural Research Service. As of January 1, 1956, the farm-mortgage debt amounted to nearly $9 .0 billion, or about 10%
more than a year earlier; the nonreal-estate debt of farmers (excluding pricesupport loans) totaled approximately $7.9 billion, which is 8% larger than a year
ago.
During 1955, banks and production credit associations increased their
outstanding loans on nonreal-estate items nearly 13% and 12%, respectively; loans
made by the Farmers Home Administration for these purposes decreased about 6%.

L I VE S T 0 CK
Trading ~ slow on cattle and calves at Fort Worth on Monday, September 10; however, prices were steady at the market's close. Cattle receipts totaled
an estimated 7,800, of which approximately LO% were cows. Good and Choice slaughter steers and heifers sold at :l:il 7 to $23; butcher and beef cows, mostly f9 .50 to
~)1 2; and Medium and Good stocker and feeder yearlings, ~',lJ.50 to ~vl?.50.

Monday's calf receipts are estimated at 2,000. Utility and Commercial
calves brought $10 to $1L o er cwt., and Good stocker steer calves cleared at ~ 16
to $18.
Hog marketings totaled an estimated 1,300. Prices were steady, with mixed
lots of u.-S: No. 1 through No. 3 Grades of 200- to 260-lb. butchers quoted at $16.50
and $16075 per cwt.
M~nday's sheep and lamb receipts totaled an estimated L,Soo. Trading was
active, and prices were fully steady. Good and Choice slaughter spring lambs
brought $18 to $20, and stocker and feeder lambs sold at $13 to $16.50 per cwt.

P R 0 DU CT I 0 N
MEAT
Red meat production in the Nation's commercial slaughter plants tot al ed
15,318 million lbs. during January-July this year, or 10% above the output in t he
corresponding months in 1955, reports the AMS. Production of both beef and po~k
was 11% larger than in the same period last year; veal output was 1% higher; whil e
the outturn of lamb and mutton was 2% lower.
POULTRY
Texas commercial broiler markets were weak throughout the week ended
Friday, SePt8ffiber 7, according to the State Department of Agriculture:--ciosing
prices were 2¢ to 3¢ per lb. lower than in the preceding week, with the following
prices quoted: South Texas, 18¢; east Texas, 17¢ to 18¢, mostly 17¢; and Waco,
17¢. During the corresponding period last year, closing prices were: South Texas ,
26¢ to 27¢, mostly 27¢, and east Texas and Waco, 27¢.
On Monday, September 10, broiler markets were weak in south Texas, about
steady in east Texas, and steadY-in the Waco-Corsicana area. The following prices
were quoted: South Texas, 16¢ to 17¢, mostly 17¢; east Texas, 16¢ to 18¢, mostly
17¢; Waco and Corsicana, at the farm, 17¢; and the Corsicana F.O.B. plant, 18¢
per lb.

Area
BROILER CHICK
PLACEMENTS

Week ended
September 1, 1956

Percentage change f rom
Comparable
Previous
week
week, 1955
1

29

Texas ••••••
Louisiana ••

1,885,000
306,000

-18

25

22 states ••

22,633,000

-3

28

P E ANUT

S UP P L I E S

Peanut supplies in the United States on July 31 amounted to 387 million
lbs. of equivalent farmers' stock (uncleaned and unshelled) peanuts, or 85% larger
than a year earlier. Of the total, 29% was held as farmers' stock, 66% as shelled
edibles, and 5% as roasting stock.
J. z. Rowe
Agricultural Economist