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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE
Number 410
BANK
OF
DALLAS
Wednesday, November G, 1957
P E ANUT S
1 9 5 8 - CR0 P
On October 28 the Acting Secretary of Agriculture announced a national
allotment of 1,610,000 ~ of 1958-crop peanuts for picking and threshing and a
marketing quota of 826,000 tons. Both the national acreage allotment and the marketing quota for the 1958 crop are at the levels required by law. Acreage allotments for the states in the Eleventh Federal Reserve District (and comparisons with
the 1957 allotments) are: Arizona, 719 acres (717); Louisiana, 1,968 acres (1,963);
New Mexico, 4,918 acres (4,906); Oklahoma, 137,668 acres (137,323); and Texas,
355,955 acres (355,063).
In a referendum on December .!_!, 1956, peanut growers approved marketing
quotas for the 1957, 1958, and 1959 crops of peanuts. Price supports will be available at a level between 75% and 90% of parity in 1958 and 1959, depending upon the
supply at the beginning of the marketing year (August 1). Marketing quotas have
been in effect for peanuts continuously since 1949.
A G R I C U L T U R A L PRICES
The index of prices received by g. ~· farmers declined 2% during the month
ended October 15, 1957, reports the Agricultural Marketing Service. Lower prices
for most meat ~imals, oranges, corn, and cotton were primarily responsible for the
decrease. Higher prices for dairy products and eggs were only partially offsetting.
The mid-October index, at 240% of the 1910-14 average, was 3% above the year-earlier
level.
The October 15 parity index {which reflects prices paid for commodities
and services, plus interest, taxes, and wage rates) is placed at 296 - unchanged
from mid-September but 3% higher than a year ago. Prices paid for family living
items declined slightly during the month, while prices paid for production goods
were unchanged. The farm wage index advanced 2% to a new all-time high of 565% of
the 1910-14 average.
The parity ratio at mid-October was 81, reflecting a 2% decrease from a
month earlier but was the same as the year-ago figure.
L I VE S T 0 CK
Livestock marketings at Fort Worth on Monday, November ~' were comparatively small, probably as a result of considerable rain which fell throughout Texas
during the past week end, reports the AMS. Cattle receipts totaled an estimated
3,000, or 500 fewer than a week ago and 200 below the year-earlier figure. Prices
ranged from weak to fully steady, with the following prices quoted: Good 800- to
1,050-lb. slaughter steers, $20 to $21.50; Utility cows, $13 to $14.50; and Medium
and Good 525- to 725-lb. stocker and feeder steers, $16.50 to $21.
The calf supply, at an estimated 1,400, was 30% below that of a week earlier but was 75% above the level on the corresponding date in 1956. Good grades of
slaughter calves brought $20 to $21, and stocker and feeder steer calves cleared at
$20 to $23.
Monday's hog receipts are placed at 800 - about the same as a week ago
but approximately double the year-earlier supply. Trading was slow in getting under
way because of lower bids; however, prices later in the day were fully steady with
those in the latter part of the past week. Mixed U. S. No. 1 through No. 3 Grades
of 195- to 270-lL. barrows and gilts sold at $17.50 to $18 per cwt.
Sheep and lamb offerings totaled about 550, compared with 1,200 on the
previous Monday's market and 1,000 on the comparable date last year. Prices for
all classes of sheep and lambs were steady. The limited supply of Good and Choice
80- to 90-lb. slaughter lambs brought $20.75 to $22.
DA IR Y 0 U T L 0 0 K
Milk production on the Nation's farms is likely to show its sixth consecutive annual increase in 1958, rising 1 to 2 billion lbs. above the record 127 billion lbs. in prospect for 1957, according to The Dairy Situation recently released
by the U. s. Department of Agriculture. Prices paid to farmers are expected to continue at current levels {allowing for season variation) through at least March 1958 the end of the current marketing year. Prices for the 1958-59 marketing year will
be influenced by the level of supports to be announced before March l!_, 1958. With
an increase in milk production likely and smaller quantities used in farm households,
cash receipts from dairy products in 1958 may reach a new record high, if prices continue at present levels. According to the report, net returns from dairying could
increase in 1958, since the average of all costs of production, including feed, may
not change significantly.
P 0 UL T R Y
The major Texas commercial broiler markets were weak during the week ended
Friday, November !, according to the State Department of Agriculture. Clo~ ~s,
which were mainly 2¢ per lb, lower than in the previous week, were: South Texas, 16¢;
east Texas, 14¢ to 16¢, mostly 15¢; and Waco, 15¢. During the corresponding period in
1956, closing prices were 15¢ in south Texas and Waco and were 14¢ to 16.5¢, mostly
15¢, in east Texas.
On Monday, November ~' broiler markets were weak to barely steady in south
Texas and were unchanged in east Texas and the Waco-Corsicana area. Prices per lb.
were: South Texas, 15¢ to 16¢; east Texas, 15¢, with a very few lower and higher;
Waco, 15¢; and the Corsicana F.O.B. plant, 16¢.
BROILER CHICK
PLACEMENTS
Percentage change from
Previous
Comparable
week, 1956
week
Area
Week ended
October 26 2 1957
Texas ••.• , .
Louisiana .•
1,599,000
268,000
-18
-25
-9
16
22 states ..
23,256,000
-2
11
FARMER
c 0 - 0 p s R I S E
L 0 A N S
T 0
During the fiscal year ended June 30, 1957, farmers' marketing, purchasing,
and service cooperatives throughout the United States obtained approximately $580
million in loans, or 3% above the year-earlier level, from 13 banks for cooperatives,
according to a recent report of the Farm Credit Administration-:--The number of loans
made advanced to 1,780, reflecting a 9% increase from the previous fiscal year.
J. z. Rowe
Agricultural Economist
@FedFRASER