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Number 41

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October 11, 1950

'Federal Reserve Bt{nk ·or Dallas
Cotton prices have declined for ·tbe · past several market days, and are
lower than at any time in more than a month. On Tuesday, October 10, the 10-market
average price for Middling 1.5/16 inch cotton fell to 39.94 cents per pound--the
first time below 40 cents since. September 5.- However, prices are more than 10 cents
per pound above a year ago.
The Government this w.eek restricted cotton exports to all countries other
than Canada. E:tcports will be limited to 2 million bales, excluding shipments to
Canada, during the 8-month period ending next March 31. At this rate exports durint tt~e l~-month marketing season .ending next August. 1 will be only about half
those of last· season.
Harvest of the Texas cotton crop is· progressing rapidly upstate and a
heavy movement is expected.'-hy· the middle of the month in north and western Texas
and yrestern Oklahoma, if weather conditions permit. The PMA .reported on October 6
that harv.e st in the Austin area was 75 to 9.~ percent complete. In the Hharton-Ft.
Bend section, harvest was 99 percent complete and the pink bollworm quarantine
authorities have asked for a voluntary plow--up date of October 15. In the central
Blackland section from McLennan County to Dallas County harvest was from 35 to '65
percent complete.
The PM.A reports that demand for spot cotton last week continued to be
very good, but some sections of the ..Jouthwest area. reported· that the demand is
easing some, due largely to the grade of cotton now being marketed. The demand for
Middling and better grades is excellent, but the supply of these qualities is very
Cotton ginnings in Texas through September 30 totaled sJightly over 1
million bales, compared with a little.more than 2 million bales to the same date
last year, according to the Bureau of Census. ·cotton ginnings . in the State through
this date averaged higher in grade and longer in staplE~ length than that ginned
through the corresponding period last season.
The October l USDA estimate of cotton production in Texas in 1950, placed
at 2, 775,000 bales, w:as unchanged from a month earlier. TheU.S. figure, hmrever,
was lower by 13 thousand bales, or down to 9,869,000 bales.
The President has issued a proclamation modifying quota restrictions on
.imports of long staple cotton to permit entry of an additional 1.5 million pounds
dur:ing the reffia:inder of the current quota year ending January 31, 1951. The regulation of imports of long staple cotton by quota was estabJished in 1939 under
Section 22 of the Agricultural Adjustment Act which authorizes import quotas on
agricultural products when necessary to prevent interference vdth domestic agri. cultural programs.
Of the 3.2 million bales of 19h9-crop cotton placed under loan, the CCC
on September 28 held notes covering only 125,000 bales.
Prices of· wheat, barley and oats declined on the Fort Worth Grain and
Cotton Excnangc during, the past week, while corn held steady and grain sorghums
advanced slightly.
On Tuesday, October 10, No. 1 hard wheat sold for a top price of $2~451/2 per bushel, or 2-1/2 cents below a eek earlier. No. 2 barley, at l'?l. h4 per
bushel, ~ras off 3 cents, while No. 2 red oats, at ~ - top price of 98-J/4 cents per
bushel, were off 1/2 cent.




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Wednesday , October 11, 19)0
Paee 2



No. 2 yellow rnilo sold as high as ·p2.10 per cwt. on Tuesday--3 cents over
a week earlier but 3 cents under a month ago. Tuesday's top corn prices:: No, 2
yellow, $1.6)-1/2; and No. 2 white, $2 .01-1/~ per bushel.
-Corn price support rates for the 1950-crop, ranging from 01 .36 to $1.64
per bushel in commercial corn counties a.nd from ~n . 02 to :ttL 30 per bushel in noncommercial corn counties, have been announced by the USDA. These rates average
$1 .47 per bushel, vs. $lo40 a year ago. Support for corn prices is available at
90 percent of parity to farmers in the "cornme-rcial" area who comply with acreage
allotments. For the 11 non-corrunercial 11 area, where acreage allotments are not in
effect, the law limits support to only 75 percent of the 90-percent-of-·parity lev~_l.

L I V E S T 0 C K A N D ME A T
Cattle prices on the Fort North market weakened early this week . All
classes sold Tuesday from $1.00 to $1 .)0 per cwt. under a week ago~ Tuesday's top
prices: slaughter and feeder-and-stocker steers, ·:~29 ~.00; heifers, ;~28 •.00; calves,
~27 .00; and cows, $20.)0 per cwt.
lNhile tlie general downward sea.sonal trend in prices of hogs · continues, the
market is showing some irregularity, with the re sult that TuesdayTS"top price of
$20.25 per cwt. was 2) cents over a week earlier.
Meat production by cornmerdal plants in Texas during the mcnth of August
totaled 68-.Tmiilion pounds, 4 percent more than during July and 5 percent above
August 1949, according to a report from the BAE office in Austin. Commercial meat
production during the first 8 months of this year amounted to about 520 million
poutids, vs. 494 million pounds for the comparable period a year ago.
· Commercial meat production in the U.S" during the first 8 months of this
year was 2 percent above the production for the same period last year.
W0 0 L A N D N 0 H A I R
Contracting on a limited basis of better, light-shrinkinG 12-month wool .
was reported in Texas at 85 c.ents per grease pound the past week , with the estimated clean cost delivered at Boston at around ~~2 . 20 per pound.
An easier tone was reported in foreign wool rr~rkets the past week. Prices
were down as much as 1) percent since opening of Australian auctions in August.
South African conditions were similar, but the best . fine wools generally held 'firm
in South America.
Some sources estimate that possibly 1/2 of the 1951 spring mohair clip in
Texas has been contracted at prices ranging up to a.Ol-1/2 for adult hair and $1. 26-1/2 for kid hair. One spot sale of West Texas mohair was made last week at ~1.07
for adult hair and $1. )2 for kid hair.



Prices in the Dallas ~fuolesale Poultry and Bgg jarket, ~dvancing seasonally, made some of the sharpest advances during the past ueek that have been experienced since June and July. Prices of hens on Tuesday were up 2 to 5 cents per
pound as compared with a week earlier, vQth birds 4 pounds and over bringing 24
cents; those weiehing 3 to 4 pounds, 18 to 20 cents per pound9
Candle~ No. 1 mixed egRs at 42 cents per dozen are up 5 cents.
No. 2
infertile eggs arJ brin~ing hScerits per dozen--up about 8 cents from a week ago.
Prices paid f'or fryers, on the other hand, have declined sli .htly during
the past 2 weeks. Arkansas fryers are bringing 28 cents per pound, while local
fryers are 1 to 3 cents lovrer.
M. Pritchett
Agricultural Economist