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Wednesday, October




Federal Reserve Bank of Dallas
C 0 T T 0 N


Cotton prices continue to show wide fluctuations from day i{o day, affected
by announcements and rUL'lors concerning export controls, as well as by other factors.
Middling 1.5/16-inch cotton averaged 39.52 cents per pound in the 10 spot markets
on Tuesday, October 2),.i, compared wl th 39. 76 cents a week earlier.
Cotton consumption in the U.S. during Aueust and September, the first 2
months of the currentseason, totaled 1, 776,ooo bales, oompared with 1., 372,000 in
the same 2 months last year.
Stocks of cotton in mills at the end of September totaled 1,238,000 bales,
compared with 745,000 a year earlier.
The brisk activity that had prevailed in the Southwestern spot markBts ·
slowed dovm to a moderate pace during the past week, according to the PM.A.. Inquiries from domestic and export sources were less numerous.
Weather conditions in the Sout'1west during most of the past week were
ideal for maturing and harvesting the cotton crop. During the latter part of. the
week,,light ' rains were reported in .several sections and harvest was delayed~
The Secretary of Agriculture this vreek announced that export allocations
for the period ending March 31, 1951 have been increased from 2 r.lillion to
2,146,000 bales. This became possible, he said, when the Bureau of Census revised
upwa,rd their figures on carry-over.of cotton in the U.-$. on August ·1 of this year.
CCC loans on 1950-crop cotton through October 12 covered only 1,072 bales
~ith an additional 546 bales in process.
World cotton stocks on July 31, 1950 are estimated by USDA at 16,)60,000
bales, which is l,62G-;ooo, or 11%, above a year earlier~ The increase in stocks
this year includes 1.4 million increase in U.S. stocks and about 200,000 elsewhere.
Vla!Son lot prices for cottonseed at Texas gin points last week ranged from
$75.00 to ~100.00, vnth an average price of '~ 90.30 per ton compared with $37 .80
a year ago,
The price of cottonseed oil, f .o.b. tank car, at Texas common points on
Tuesday of this week ~vas 18-1/2 cents per pound, compared with 17-1/2 cents a week
Grain prices on the Fort \forth Grain and Cotton Exchange have strengthened
during the past week. On Tuesday, October 24, No. 1 hard wheat sold for ~2.43-3/4
per bushel, up }:-1/2 cents from a week earlier. No. 2 red ~ at 9?- 3/4 cents re re
up 1-1/2 cents. No. 2 yellow corn, selline; for $le 6h--3/5, was up about 2 cents, .
. while white corn at ~l. Bb-572 wasup 5 cents p11r bushel. No. 2 yellow milo sold for
a top prtce of ~;.2,20 per cwt.--up 5 cents from a week earlier. Barley prices remained unchanged at . :,?1.Li4 per bushel for top price.

Commercial vegetables in the Texas irrigated sections showed improvement
during the first half of All sections of the Lower Valley had good rains
the early part of the month and fairly good rains 111rere received in the Winter
Garden and Eap:le Pass sections. The Laredo sec+ion remained dry, but all areas
have a eood supply of water for irrigation. Temperatures rere favorable for groi..ring
crops and good progress was' made in planting of additional acreages for Jater season
harvest. Nonirrigated vegetable areas were stilJ. critically short of moisture. The
Coastal Bend was still ~ithout any relief from the long dry spell and no plantings
have beenliiade in that area.

Number. 43

VJednesday, October

25, 19)0
Page 2

A somewhat higher level of demand for vegetables in 1951 is expected,
according to the USDA's 1951 Outlook Issue ofiTThe Vegetable Situation." Prices
received by farmers for commercial truck crops produced for fresh market in 1951
are expected to average higher than in 1950. Ccmswnption of canned and frozen vegetables in general is expected to continue on at least as high a level as in 1950.
Some increases in production of processing crops, particularly for canning, appear
The 1951 potato crop, barring abnormal weather conditions, may be considerably larger than that required to take care of a.11 the normal commercial uses
made of potatoes in recent years. In all proba.b ili ty, says the USDA, there will be
no price support program for potatoes in 1951--the first time in several years.
Prices received by farmers for 1951-crop potatoes probably will average lower than ·
in any other year since the beginning of : orld Viar II.

Livestock prices on the Fort Worth market have fluctuated durini:; the past
3 weeks without much evidence of up'.rard or downward trends. On Tuesda~.r, October 24,
top prices of hogs (~20.00), slaughter and feeder-and-stocker steers (830000),
heifers u~29,oor.;-and caJves ( .28.50) were the same as 3 weeks ago; slaughter cows
at ~ 23.00 were up $LOO per cwt.
The number of cattle on feed October 1 in 3 important feeding states-Illiriois, Iowa, and Nebraska--was 1,081.i,OOO head, 21% more than on the same date
last year, according to tho DA~.

on the Dallas wholesale poultry and egg marl"et have remained virtually unchanged during the past week.
·conunercial hatcheries i_n Texas produced 2. 9 million chicks during September. This was a record high for season of the year and 29% above the number
produced for the same month last year, according to the BAE. An expanding poultry
industry, particularly in east Texas, took the bulk of tho increased chick production.
Er~g production on Texas farms during September was 192 million, which
was practically the same number produced in September, 1949.

MI S C E L L A N E 0 U S
The 1950 honey crop for Texas is estimated b:;r the USDA at 15,850,000
pounds, exceeding by 19~ the previous record established last year. The average
yield of So pounds per colony compares with 43 pounus produced last year.
Production of alfalfa seed in Texas in 1950 is forecast at 49,000 bushels,
thresher run, up 1,000 bushels above the 1949 crop. Acreage is up 12-1/2%. Production of sudan grass seed is estimated at 14.4 million pounds, clean basis,
down 20~~.
Texas white seedless grapefruit sold at auction in Chicago this week at
an average of abo it '% .18 per box. Texas Navel oranges ave raced ~> J. 95 per box,
while Hamli 1s brought "'i J.86.
--W. M. Pritchett
Agricultural Economist