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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE

Number 391

BANK OF

DALLAS

Wednesday, June 26, 1957

WHEAT
MARKETING
QUOTAS
APPROVED
Preliminary returns from the wheat referendum held June 20 in the 36-state
commercial wheat-producing area show that 83.3% of the farmers voting favor marketing quotas on the 1958 wheat crop. Quotas were approved for the 1957 crop by 87.4%
of the growers voting. The referendum marks the seventh time the Nation's farmers
have voted favorably on marketing quotas for wheat.
PROGRAM
W0 0 L
PAYMENT
R A T E S
1 9 5 6
F 0 R
On June 21 the U. s. Department of Agriculture announced that shorn wool
payments under the 1956 wool incentive program will amount to 40% of the dollar returns each producer received {or $40 for every $100 received) from the sale of shorn
wool during the 1956 marketing year. The payment rate on sales of unshorn lambs
to compensate for wool on them will be 71¢ per cwt. of live animals sold. This payment is designed to discourage unusual shearing of lambs before marketing. County
Agricultural Stabilization and Conservation (ASC) offices will begin making payments
soon after July 1.
No payments will be made on mohair sold during the 1956 marketing year,
since the average price of mohair, at 84.4¢ per lb., was higher than the support
price of 70¢ per lb.
MORE
PIGS
IN
PROSPECT
The Nation's 1957 spring and fall .Eig crops combined are forecast at approximately 90 million head, according to the Agricultural Marketing Service. If
the forecast-;aterialize;:-this year's hog production will be 1% above both the 1956
level and the 1946-55 average. The spring pig crop, at an estimated 53.2 million,
was only slightly below that a year earlier. The number of pigs saved averaged
7.12 per litter - an all-time high for spring farrowings. Reports indicate that
5.3 million sows will be farrowed this fall, or a 2% increase over the 1956 fall
farrowings.
L I VE S T 0 C K
The cattle supply at Fort Worth on Monday, June 24, totaled an estimated
5,500, reflecting declines of 8% from a week earlier and 27% from the corresponding
date in 1956, reports the AMS. Trading on slaughter steers and yearlings generally
was slow, and prices were about steady with those in the previous week. Prices for
slaughter cows were mostly firm. Demand for stocker and feeder cattle was good, and
trading was fairly active, with most sales steady to strong. Good 800- to 1,100-lb.
slaughter steers brought $21 to $22.50; Standard and Good heifers and mixed grades
of yearlings, $17 to $21.50; Utility cows, $13.50 to $14.50; and Good 500- to 700lb. stocker and feeder steers, $20 to $21.50 per cwt.
Monday's calf receipts, at an estimated 1,600, were 500 more than a week
ago and 400 above the year-earlier level. Closing prices of slaughter calves were
weak, with some sales 25~ per cwt. lower than in the precedin3 week. Most Good
slaughter calves were quoted at $20 to $21.50, and Medium and Good stocker steer
calves brought $17 to $22.

Hog offerings are placed at 800, compared with 1,000 on the previous
Monday's market and 1,100 on the comparable date last year. Barrows and gilts sold
at prices which were 25¢ to 50¢ per cwt. higher than in the latter part of the past
week. Most No. 1 through No. 3 Grades of mixed 200- to 280-lb. slaughter hogs brought
$20.25 and $20.50.
Monday's sheep and lamb marketings, at an estimated 6,200, were 21% below
a week earlier and 18% fewer than a year ago. After a late start, trading was fairly
active, and prices of all classes were about steady with those in the latter part
of the past week. Good and a few Choice 70- to 85-lb. slaughter spring lambs brought
$19.50 to mostly $20.

P 0 UL T RY
The major Texas commercial broiler markets were steady throughout the week
ended Friday, June 21, reports the State Department of Agriculture. As compared with
a week earlier, closing prices were unchanged in south Texas, east Texas, and Waco
and were unchanged to ~¢ per lb. higher at the Corsicana F.O.B. plant. Closing prices
were: South Texas, 22¢; east Texas and Waco, 21¢; and the Corsicana F.O.B. plant,
21.5¢ to 22¢. During the comparable period in 1956, the following closing prices
were quoted: South Texas, 21¢; east Texas, 20¢ to 21¢; Waco, 20.5¢ to 21¢; and the
Corsicana F.O.B. plant, 21.5¢ to 22¢.
On Monday, June 24, broiler markets were unsettled in south Texas, fully
steady in east Texas, and steady in Waco. Prices were 21¢ to 22¢ per lb. in south
Texas and mostly 21¢ in east Texas and Waco.

BROILER CHICK
PLACEMENTS

Percentage change from
Previous
Comparable
week
week 2 1956

Area

Week ended
June 15~ 1957

Texas ....••
Louisiana ••

2,338,000
379,000

5
-15

0
-7

22 states •.

28~824~000

1

2

HAT CHE R Y

P R0 DUCT I 0 N

The number of chicks produced Ex commercial hatcheries in the Nation during May totaled 236,325,000, or p% below the year-earlier level but 2% more than the
1951-55 average for the month. The number of chicks hatched for broiler production
was about the same as in May 1956, while the number hatched for laying flock replacements was down 14%.
In Texas, commercial hatchery output during May is placed at 10,188,000
chicks, reflecting declines of 11% from a month earlier and 10% from a year ago.
Production of egg-type chicks was less than one-half the April outturn, while the
output of broiler-type chicks was 5% greater. During the first 5 months of 1957,
production of egg-type chicks in the State was down 25% from the corresponding
period last year, while broiler chick output was 6% higher.

J. Z. Rowe
Agricultural Economist