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Number 361



Wednesday, November 28, 1956

The currPnt i ssue of The Demand and Price Situation released by the U. S.
Department of Agriculture pointsout that :-- - ~:- The demand for farm nroducts is likely to be maintained
at a high level during-1957.
-::- A record export volume is in prospect for the 1956-57
season, which probably will reduce stocks of cotton, wheat,
and rice.
-:*" Crop output in 1957 is expected to be smaller than this
year's production if farmers participate actively in the Soil
Bank program. Hog marketings are likely to be smaller, but
cattle slaughter is expected to continue at a high level.
~:- Some improvement in the general level of farm product
prices is likely . However, the increase is expected to be
small, reflecting prospects for a continued heavy supply situation for most farm products.
~!- Farm income is expected to show some further increase
in 1957:--Crop receipts ~ay be reduced as a result of the impact of the Soil Bank on output of major crops, but payments
for participation in the program are expected to maintain
farmers' incomes from these commodities. Cash receipts from
livestock and livestock products could show some increase.
Farm production expenses are expected to be about the same as
the 1956 level.
On November 20 the Secretary of Agriculture announced the following actions on 1957-crop rice:
1. Proclaimed a national acreage allotment of 1,652,596 acres - the
minimum permitted by law. The acreage allotments for 1957 for the rice-producing
states in the Bleventh Federal Reserve District (and the final allotments for 1956)
are: Arizona, 229 acres (229); Louisiana, L74,863 acres CL 75,094); Oklahoma, 1L9
acres (1 L9); and Texas, L22, 185 acres (L22,390).
2. Proclaimed marketing quotas for the 1957 crop of rice.
3. Determined that the 11 certificate 11 or 11 two-price 11 marketing provram
authorized by the Agricultural Act of 19S6 will not be in effect for the 1957 crop.
L. Set the minimum national averag'8""suP'Port nrice at $L.43 per cwt.-,--which is 80% of the current parity price. The support rate for 1956-="crop rice is
$L.57 per cwt., or s2t% of parity.
5. Set December 11, 1956, as the date for a referendum to determine
produc r approval or disapproval of quotas.

Cattle marketings were moderate at Fort \ orth on Monday, November 26,
according to the Agricultural Marketing Service:- The supply is estimated at~,700,
or about 800 fewer than both a week ago and a year earlier. Trading was more
active than on any day in the previous week, and prices were generally steady. The

following prices were quoted: Choice steers and yearlings, $?0 to ~21.50; beef
cows, mainly $9 to fpll; and Common and Medium stocker and feeder steers, ~pll to :. lL.
Monday's calf run totaled an estimated 1,000, reflecting an 11% increase
from both a week earlier and the corresponding date in 1955. Prices were mostly
fully steady with the past week's close. Good and Choice slaughter calves sold at
~~lL.50 to $17, and Medium and Good stocker steer ca.lves cleared at $13 to $18.
Hog offerings are placed at l,OOO, compared with 900 on the preceding
Monday's market and ?SO at the same time last year. Trading was late in getting
started as a result of higher asking prices. Slaughter hogs finally sold at
prices which were 50¢ per cwt. higher than in the latter part of the past week.
U. S, No. 1 through No. 3 Grades of 200- to 26)-lb. butchers brought $15.75 to
mostly $16.
Sheep and lamb receipts - at an estimated 6,500 - were the largest since
early July this year:-Lambs comprised more than 90% of the supply. Trading was-slow, and prices of slaughter lambs were mostly 50¢ lower than in the latter part
of the preceding week. Good and Choice 80- to 90-lb. wooled and shorn slaughter
lambs with No. 1 and No. 2 pelts sold at $17.50 to $19 per cwt.
Prices in the principal Texas commercial broiler markets followed a
weakening trend during the week ended Friday, November 23, reports the State Department of Agriculture. Trading was hampered as broiler demand became slow
during the Thanksgiving holidays. Closing prices were 2¢ to 2.5¢ per lb. lower
than in the preceding week, with the following prices quoted: East Texas, 1L¢ to
17¢, mostly 15¢ to 16¢; and Waco, 1).5¢ to 16¢, mostly 1).5¢. (No prices were
reported for south Texas as marketings were too limited.) During the corresponding
period in 1955, closing prices were: South Texas, a few at 20¢; east Texas, 17¢ to
20¢; and Waco, 19¢ to 20¢, mostly 19¢.
On Monday, November 26, broiler markets were about steady in south and
east Texas and about steady toweak in Waco. The following prices were quoted:
South Texas, 15¢ to 16¢; east Texas, 1L¢ to 16¢, mostly 15¢ to 16¢; and Waco, 15¢
per lb.

J. z. Rowe
Agricultural Economist