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Number 36
- -.-

Wednepday ,. September 6, 1950

Federal Reserve Bank of Dallas
C 0 T T 0 N

Cotton prices have risen to the highest levels in 30 years . . On Tuesday,
September 5, Middling 15/16·-inch staple averaged 39.96 cents per pound in tl;le 10 ·
designated markets, which comp~res with 38.98 cents a week earlier and JO.JO cents
a year ago.
On the New York market, cotton futures prices went above 40 c~nts per
pound on Tu:esday of this week. It sold for March 1951 delivery at prices ranging
as high as 40.25 cents per pound. The main reason for this advance is said to have
been the fear of a shortage of cotton later in the season. Other factors in the
buying of futures were wet weather over Jarge areas of the Cotton Belt, con~inued
favorable dry goods reports, and small private crop estimates.
The September cotton crop estimate will be announced on Friday of this
week. Until recently, an increase-over August fj_gures had been expected but severe
insect damage, stimulated by heavy rains, and damage caused by recent tropical storms
in the South has induced expectations of a crop reduction. It is said that the USDA
is contemplating action to curtail cotton exports.
Most farmers in the early areas are selling their cotton as fast as it is
ginned, according to PMAft The spread between prices at country points and central
markets is apparently very narrowo
Loan repayments reported to CCC during the week ended August 24 totaled
20,700 bales;-thesmalie'St weekly volume since mid-January. CCC loan stocks of
1949-crop cotton totaled 200,600 bales on August 24.
The parity price for cotton on August 15 was 3la25 cents per pound. This
compares vvi th the July parity o:f 31 cents.· However, the higher August parity will
not affect support prices for the 1950 crop. :
This year ,·s supply of American-Egyptian cotton is indicated at about
69,000 bales, compared with only~700 bales in 1949-SO. Acreage allotments were
not imposed on long staple cotton acreage this year, and the 19)0 prospective crop
of 67 ,400 bales is the largest since 1942.
Trends in grain prices on the Frirt \forth Grain and Cotton Exchange during
the past week have been mixed. On Tuesday, September 5, NoQ 2 white corn sold for
a top price of $2.24-1/2 per bushel -- up 13 cents from a week earlier:---Noo 2
yellow corn, at $1.66-1/2 per bushel, was up l cent over a week ago 0
---i:fo. 2 red oats sold on Tuesday of this week for a top price of 97 cents
per bushel -- about 2 cents above a week earlier and higher than at any time in
several months. No. 2 barley brought $1~1+.5 per bushel - up 3 cents from last week.
On the other hand> wheat and grain sorghum prices declined during the past
week. Tuesday's top price for No. 1 hard wheat was ~~2. 44 per bushel -- 3-1/2 cents
below last week's top price although near theaverage of levels of the past month.
No. 2 yellow milo sold as high as ~~2.15 per cwt. - 3 cents under a week ago.
--ECA last· week allotted $20 million to Germany to buy u. s. wheat and
Due to the proximity of ~heat prices to loan levels, there has been no
rush by producers so far this season to place wheat in the loan program, which is
open until January 31 1951
Rice markets weakened the week ended August 28 as new crop offerings became--more plentiful.

Number Jfr


Wednesday, September 6; 19)0
Page 2


L I V E. S ·T 0 C JC

Reports from the Fort Worth livestock market during the past week indicate some strengthening of cattle prices and a weakening of hog prices. On Tuesday,
September ), hogs sold for a top price of" $2J.25 per cwt,,
off $1.50 from a vreek
Prices of slaughter steers, at ~30. 00 per c·wt., on Tuesday of this week
were $1. 50 above a week earlier, while increases of ~~L 00 per cwt. were reported for
heifers ($29.50) and calves ($29.00). Feeder and stocker steers are holding steady







continue to hold at $28. 00 per cwt., top price ·.

Wool Boston wa:st8mporarily suspended last week as dealers
1'.ra.tched th8ffiarket abroad. In the Southwest range country, there was little trading
because of wool shortages, acc<Jrding to the PrJ1A. · Wool was so scarce that buyers
began contracting for the 1951 clip in~' Nevada, and California • . Contracts
around Alpine, Sanderson, and Ingram, Texas last week sold at 75 cents . per pound,
grease basis.
Developments in the Texas mohair situation followed closely those in wool,
Nearly the entire fall mohair clip has been contracted at the starting price of 65
cents per pound to the last contract at 85 cents.

M I S. C E L L A N E 0 U S
With smaller production and stronger dema.nd, grovrer prices for most fruits marketed during late summer and fall are expected to continue
higher than.incomparable months of J949, says the USDA. Heavy harvest-time market.ings probably ·will result in about seasonal declines in prices, in contrast to the
sharp drops of a year ago, but prices for the entire crops are expected to average
moderately above those of 1949. Demand for fruit for processing as ~~11 as for
fresh use is a strong factor in the higher prices of fruit this year. As military
procurement enlarges, it will become an increasingly important factor in prices.
Four thousand fanners received loans to construct or repair houses and
other farm buildings during the first yearts operation of the Farm Housing Program,
the USDA announced. Loans totaling over $18 million were made from a $25 million
The first survey of frozen food locker plants by the USDA since the war
years shows the number of pl.ants onJ anuary 1, 1950' to have been nearly double
tho number of midsummer 1945. They now number about 11,400, serve some 15 million
people, and process about 1Q3 billion pounds of food yearlyo
Cash receipts from farm :aiarketings in Texas during June slightly exceeded $lOOTiiillion-but fell $30 million belov those for the same month a year ago.
Cash receipts in the State for the first 6 months o.f this year totaled ~P707 million,
vs. $640 million for the same period last year.
Cash receipts from farm marketings in Louisiana, Oklahoma, New Mexico,
and Arizona:-ror--=t"hu first half of 1950 were lo rer by~million to ~15 million as
compared ·~th this period last year.

W. 1.4. Fri tchett
Agricultural Economist