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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE

BANK OF

Number 358

DALLAS

Wednesday, November 7, 1956

F ARM

P RI CES

The index of prices received by u. S. farmers declined 1% during the
month ended October 15, 1956, reports the Agricultural Marketing Service. At
23L% of the 1910-lL average, the index compares with 229% a year earlier. The
parity index (which reflects prices paid for commodities, plus interest, taxes,
and wage rates) is placed at 287 - unchanged from the mid-September level. Hi £her
wage rates offset lower prices for farm production items, while prices paid by
farmers for family living items were the same as a month earlier. The parity ratio
was 82, which was the same as in August and September this year and in October 1955.
The index of prices received by Texas farmers and ranchers at mid-October
was almost 1% below the month-earlier level and 3% lower than at the same time l ast
year. Compared with mid-September, higher prices were received for all grains,
cotton lint, cottonseed, and hay. However, the gains were more than offset by a
decline in the meat animal index, which reflected a sharp decrease in prices received for beef cattle and calves. A seasonal increase in egg price s was in contrast to lower prices received for chickens and turkeys.

E XT RA - L 0 NG

S T A P L E COTTON ALLOTM EN TS
On October 29 the U. S. Department of Agriculture announced state acreage
allotments for the 1957 crop of extra-long staple cotton, thus giving the breakdown
of the national allotment of 89,357 acres announced on October 15. Allotments for
the states in the Eleventh Federal Reserve District which produce extra -long staple
cotton (and comparisons with 1956 allotments) are: Arizona, 36,657 acres (18,L33);
New Mexico, 17 ,522 acres ( 8, L2L); and Texas, 29 ,983 acres ( 15, 770).
P UR CHAS E P R 0 GRAM
P 0 R K
The Secretary of Agriculture announced on October 30 that the USDA is
undertaking immediately a pork purchase program to stabilize producer prices and
help encourage additional dOffiestic consumption or-pork. The program is in addition
to the current lard purchase program announced on October 2. The combined programs
ill make $100 million available for use in stabilizing hog prices during the current heavy marketing season. The pork to be purchased under the October JO announcement will be for current consumption through the nonprofit school lunch program,
institutions, and other eligible outlets.
LIVESTOCK
Rai ns during the past week end resulted in a sharp c 1rtailment in livestock marketITif s at Fort Worth o~nday:, November 5, according to the AMS. The
catile supply - estimated at 3,200 - was 2,600 fewer than a week ago and the smallest for any Monday since May this year. Prices for most slaughter steers and
yearlings were about steady, while those for cows were strong to 25¢ and more per
cwt. higher than in the past week. Trading on stockers was active, and prices were
strong. Choice slaughter steers sold at $20 to $23.SO; Utility cows, mostly $10
to $11.50; and Medium and Good stocker and feeder steers, $13 to $17.
Calf receipts are estimated at 800, or only half as large as the previous ·
Monday's supply and 500 fewer than at the same time last year. Trading on both
slaughter and st ocker classes was active, and prices were strong to 50¢ per cwt.

higher than a week earlier. Good and Choice slaughter calves brought $16 to $19,
and Medium and Good stocker steer calves cleared at $13 to $18 per cwt.
Monday's hog marketings are placed at 500, which is only a third as large
as the preceding week's supply and 17% smaller than a year ago. Trading was slow
in getting under way as a result of sharply higher asking prices. Butcher hogs
finally sold at prices which were 25¢ to 50¢ per cwt. higher than those in the
latter part of the past week, and prices for sows were mostly 25¢ higher. U. S.
No. 1 through No. 3 Grades of 200- to 275-lb. slaughter hogs were quoted at. $1).50
and $15.75.
Sheep and lamb offerings, at an estimated l,OOO, were the smallest Monday
supply in many years:--Shorn slaughter lambs accounted for a large part of the receipts. Trading was fairly active, and prices were fully steady with those in the
latter part of the previous week. Good and Choice 79- to 81-lb. No. 1 and No. 2
pelt shorn slaughter lambs sold at $20 per cwt.
WORLD
MILK
P R 0 DU CT I 0
Milk production in the 22 primary dairy countries
approximately 381 billion lbs. in 1956, reports the Foreign
An output this size would be 2% larger than the 372 billion

N
is expected to total
Agricultural Service.
lbs. produced in 1955.

POULTRY
During the week ended Friday, November 2, trading on the Texas commercial
broiler markets followed a generally downward trend which leveled off toward the
close, when supplies became less plentif~l under a fairly active demand. As compared with the previous week, closing prices were 1¢ per lb. lower in south Texas
and the Waco-Corsicana area and 1¢~0 2¢ lower in east Texas. The following prices
were quoted: South Texas and Waco, 15¢, and east Texas, 14¢ to 16.5¢. (The price
at the Corsicana F.O.B. plant was unavailable.) During the corresponding period
last year, closing prices were: South Texas, 22¢ to 23¢; east Texas and the
Corsicana F.O.B. plant, 22¢; and Waco, 21¢ to 22¢, mostly..22¢.
The Texas broiler markets were firm on Monday, November 5. Trading was
very heavy in south Texas, heavy in east Texas, and normal in Waco~ with the following prices quoted: South Texas, 15¢ to 17¢; east Texas, 15¢ to 18¢; and the
Corsicana F.O.B. plant, 16.5¢ per lb.

Area
BROILER CHICK
PLACEMSNTS

Percentage change from
Comparable
Previous
week
week, 1955

Week ended
October 27~ 1956

Texas ••••••
Louisiana ••

1,756,ooo
232,000

-18

-L

6
-11

22 states ••

20~051~000

0

7

z.

Rowe
Agricultural Economist
J.