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Wednesday, November 1, 1950

Federal Reserye Bank of Dallas
The USDA announced last week a m~rketing ~iota of 650,000 tons of 1951crop peanuts, and a national allotment of about 1.8 million acres. Of this acreage
allotment, Texas receives 376,700 acres, compared with an original allotment of
451,200 acres this year; Oklahoma gets 153,300 acres, compared with 183,600 this
year. Small acreages go also to Arizona, Louisiana, and New Mexico.
'J.1he USDA announced also that a referendum on marketing quotas for 19.~l,
1952, and 1953 peanut crops will be held December14, 19'.)0. A two-thirds favorable
vote in a referendum is required for quotas to be in effect.
C 0 T T 0 N

Cotton prices rose last week to the highest level since the sharp break
following the announcement of export controls. Middling 15/16-inch_cotton last
Saturday averaged 40.63 cents per pound in the 10 designated markets, compared with
the '1 low 11 of 37. 87 cents on October 16. · Prices on Monday and Tuesday were off a
few points from last week.
Ginnings in Texas through October 17 totaled 1.4 million bales; or about
50 percent of the crop, compared w:i. th h5 percent to the same date last year. Of
the cotton ginned thus far this season 16,h percent is fSraded Strict Middling, vs.
11.8 percent last year; Middling comprised h7.5 percent, vs. 42.h a year ago;
Strict IJow Middling, on the other hand, accounted for only 19 percent, vs. 26.5
percent in 1949.
Ideal weather conditions continued to prevail over the South~estern area
during the past week, and cotton harvesting made excellent progress. If present
weather conditions continue for another 3 weeks, about 75 percent of the crop will
be harvested, according to PMA.
World cotton production in J950-51 is currently forecast at about 27
million bales-.- This coMnares with 31. 2 111illion bales last season and a prewar
( 1935-39) average of abo.u t 31. 7 million bales. The, sharp reduction of about 6-1/4
million bales in the United States crop is only partially offset by a prospective
increase of around 2 million bale.s in other cotton-producing countries.
V!agon lot prices for cottonseed at Texas gin points last week ranged from
$80.00 to $95.00 with an average of $90.50 per ton, up 20 cents from the previous
week, according to PMA. A year ago the average price vms wh2. 90 per ton.

Grain prices rose on the Fort Worth Grain and Cotton Exchange during the
past week. The top price f.or No. 1 hard wheat on Tuesday, October 31, was $2. h7
per bushel--up about 3 cents from a week earlier and 10 cents over a year ago,
No. 2 barley sold on Tuesday for ~~l.48 per bushel--up 4 cents from a
week earlier and 12 cents over a y~ar ago. No. 2 white oats brought $1. 02-1/2
per bushel.
Tuesday's top price for No, 2 yellow corn was $1. 69-1/J.i per bushel--up
about 5 cents from a week ago; 1J o. 2 white corn at $1. 89 was up 2-1/2 cents. tJ o. 2
.yell9w milo brought 02.25 per cwt.--5 cents over a week earlier and 6 cents above
the same date last year.
Milled rice sold last v·cek at Texas and Louisiana conman points as follows~
Zenith, $9.75; Patna, ~~ 11.5 0 ; and Blue Bonnet, :;1i.3S per c·.rt,
The USDA reports that throu,.,.h September 19t:;O, U.S. fanners placed 128
million bushels of 1950-crop wheat, barley, oats, rye, flaxseed, soybeans, corn,

Wednesday, November 1, 1950
Page 2




and grain sorghums under CCC pri.ce support. The fiisure a year ago was 298 million
bushels. Of the total qnanti ty of these c·rops placed under support this year,
wheat accounted for 101 million; barley, 15 million; and oats and grain sorghums,
5 million bushels each.




Livestock prices on the Fort Worth market continue to show very little
change. Hop;s sold Tuesday, October 31, for a top price o.f ·;~20.2.5 per cwt.--up, 25
cents from-a-week earlier. The p:;:"ice a year ago v1as ~18. 00.
Cattle prices held steady du.rlng the past week. Tuesday's top prices,
with changes from a year ago: slaughter steers .,~30.00, up $2.00; heifers ~~29.oo,
up ~~2. 00; calves '~28:00, up ~5. 00; cows ~~23. 00, up ~~7. 00; and feeder-and-stocker
steers ~ JO.GO, up $7 . .50 per cwt.
ifooled lambs grading Meditun and Good sold rl'uesday .for a top price of
$29.00 per cwt., up :$ 1.00 from a week earlier.
Meat production is expected to increase next year, says the USDA in its
outlook issue of 11 The Livevtock and Meat Situation." Production in 19.51 will be
sufficient to supply somewhat larger military requirements and also provide for a
civilian consumption of about 3 pounds more psr capita than the 145 pounds expected
to be consumed in 1950. Practically all the increase in mea.t production next year
will be in beef and pork. Little change is likely
production of veal or of lamb
and mutton.
New defense activities probc.bly vdll mean J.areer consumer incomes ·and
stronger demand for meat next year, the report continues, but prices of meat animals
may be only moderately higher than in 1950, since the larger production in prospect
will be an offsetting influence.


· Vl 0 0 1

Contracting of 12-months wool continued on a small scale in Texas last
week. However, some 1951 12-months wool was contracted this week in the Kerrville
area at prices raneing up to ;"~J • 00 per pound, grease basis.
Domestic production of shorn and pulled wool in the U.S. in 1951 is likely'
to be slightly less than this year, says tr e USDA. Production of shorn wool probably ~~11 be around 210-215 r.ri.llion pounds, grease basis, 1~ich ·ould be the smallest since 1879. Stock sheep numbers at the beginning of the year probably will be
ne,1 rly the same as on January 1, 1950.
Consumer demand for vrool goods in the TJ .s. next year is likely to continue
strong. A-considerable increase in military requirements in the U.S. and other
conntries also seems likely. Even thou~h wool prices will be higher next year, ~
~~ump_~ in the U.3. probably will increase slightly.

MI S C E L L A N E 0 U S
The BAE .index of fan: prices in the U.S. declined from 272 to 268, or 1.4
percent, du-ring the rr:onth encle cl October 15.:.-the first decline in the mont~ly index
since December 19 1~ 9. A sharp declir e in hog prices and moderate reductions in
prices of most c1·ops accounted for the dovrn-turn,
Texas ll~by Red grAp0fruit in nailed Loxes scld at auction in Chicago last
Friday at an avera e of f; 6. '10 per box. Texas V hi te Seedless in wire bound boxes
brought an average of Ch.2h per box.

W. M. Pritchett
Agricultural Economist