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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE

Number 355

BANK

OF

DALLAS

Wednesday, October 17, 1956

W I N T E R WH E A T A C R E A G E R E S E R V E C 0 N T R A C T S
As of October 5 (the deadline for signing wheat agreements), 185,836
agreements had been signed by the Nation's wheat farmers placing 8,771,565 acres
under the 1957 winter wheat Acreage Reserve program of the Soil Bank, according to
preliminary reports from State Agricultural Stabilization and Conservation offices
in the 36 states of the commercial wheat area. A maximum of $150,216,L9L is payable to farmers if they meet the requirements of the program.
Texas wheat growers signed 12,116 agreements and placed 919,985 acres
under the winter wheat Acreage Reserve program through October 5. The farmers
will be eligible for a maximum of $1L,067,075 if they meet the requirements of the
program.

C 0 NS E R VAT I 0 N

EXTENDED
R E S E R V E DEADLINE
The final date for farmers to enter Conservation Reserve contracts for
19)6 has been extended from October 15 to 1-Jovember 30, reports tde U. S. Department
of Agriculture. In order to participate in the program, a farmer must have eligible
land which has not been cropped or grazed this year. He must also have reduced production of Soil Bank base crops (corn, cotton, peanuts, rice, tobacco, and wheat)
to qualify for an annual payment at the regular rate. March 15 is the deadline for
signing 1957 Conservation Reserve contracts.
HAY
HAULING RATES
R E DU C E D
A recent release from the White House stated that, effective October 13,
the western railroads were putting into effect a )0% reduction in rates for hauilng
hay to drought areas. The reduction applies to hay hauled fromall western states
to drought-disaster areas in Arizona, Colorado, Kansas, Nevada, New Mexico, Oklahoma, Texas, and Utah. The release states further that, also effective October 13,
the railroads will establish rates for outbound movement of livestock from the
drought areas to feeding grounds in the western territory which will permit free
return transportation to originating points.

C0 TT 0 N

P R 0 DUCT I 0 N

The 19)6 cotton crop in the Nation is estimated, as of October 1, at
13, 268, 000 bales;-or 15 3, OOObales more t han the month-ear lier forecast but 10%
below the outturn in 1955, according to the Agricultural Marketin6 Service. Prospective production in the Eleventh Federal Reserve District (Arizona, Louisiana,
New Mexico, Oklahoma, and Texas) is placed at 5,L55,000 bales, which is 20,000
bales higher than indicated on September 1 but 10~ below production last year. The
Texas cotton crop is estimated at 3,L60,000 bales - unchanr-ed from a month earlier
but 1L% below the 1955 output. The October 1 estimates place prospective production higher than a month earlier in Arizona and Louisiana but 5,000 bales lower in
both New Mexico and Oklahoma.
POULTRY
The Texas commercial broiler markets followed a firming trend and closed
steady during the week ended Thursday, October 11, according to the State Department of Agriculture. Closing prices - which ranged from 1¢ to 3¢ per lb. higher

than in the preceding week - were: South Texas, 17¢, with a few at 16¢; east Texas,
17¢ to 19¢; and Waco, 18¢. During the corresponding period in 1955, closing prices
were: South Texas, 24¢ to 25¢, mostly 24¢; east Texas, 22¢ to 24¢, mostly 23¢; and
Waco, 23¢ to 24¢, mostly 23¢.
The Texas broiler markets were steady on Monday of this week. Trading
was about normal in south Texas and the Waco-Corsicana areaand heavy in east Texas.
The following prices were quoted: South Texas, 18¢, with a very few at 19¢; east
Texas, 17¢ to 18.)¢, mostly 18¢; Waco, 18¢; and the Corsicana F.O.B. plant, 18.5¢
to 19¢.

Area
BROILER CHICK
PLACEMENTS

Week ended
October 6, 1956

Percentage change from
Previous
Comparable
week
week, 1955

Texas ••••••
Louisiana ••

1,996,000
252,000

7
-7

26
17

22 states ••

21~193~000

-1

17

L I VE S T 0 CK
The supply of mature cattle at Fort Worth on Monday, October 15, totaled
an estimated 6, 700, or800 fewer than a week earlier but 300 more than at the same
time in 1955, reports the AMS. The stockyards were muddy from overnight showers,
and trading was slow - especially on slaughter classes. Prices of slaughter steers
were weak to 50¢ per cwt. lower than in the previous week, while those for most
cows and most stockers and feeders were steady. Good and Choice slaughter steers
brought $17 to $22.)0; Utility cows, $8.)0 to $10.50; and Medium stockers and
feeders, $11 to $1L.
Monday's calf receipts are placed at 1,200, compared with 2,000 both a
week ago and on the--corresponding date last year. A large share of the supply was
suitable for stockers and feeders. Slaughter calves and stockers sold at prices
which were mostly steady with those in the preceding week. Utility and Standard
slaughter calves cleared at $9 to $14, and Good stocker steer calves brought $15
to $18 per cwt.
Hog offerings are estimated at 1,300, reflecting increases of 8% from a
week earlier-and 63% from a year ago. Trading was fairly active, with slaughter
hogs selling at prices which were fully 25¢ per cwt. lower than in the latter part
oft he past week. No. 1 through No. 3 Grades of 200- to 27)-lb. ·butchers brought
$16 to $16.SO, with most sales at $16.25.
Sheep and lamb receipts - at 5,600 head - were 1,000 larger than on the
previous Monday'srnarket and 3f times greater than on the comparable date in 1955.
Trading was active, and prices were steady to strong. Good and Choice 82- to 95-lb.
shorn slaughter lambs sold at $17.50 to $20 per cwt.

J. z. Rowe
Agricultural 8conomist