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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF
Number 470
DALLAS
Wednesday, December 31, 1958
W I N T E R WH E A T
winter wheat acreage seeded for harvest in 1959 is placed at
45.1 million~' which is 2% larger than the seedings for the 1958 crop but 12%
below the 1948-57 average, points out the Agricultural Marketing Service. Abolish~ of the Acreage Reserve Program is the major factor accounting for the increase.
The national 1959 winter ~ crop is indicated at 957 million bu. A crop of this
size would be sharply below the peak output of nearly 1.2 billion bu. in 1958 but
still would be the fifth largest on record and 17% above average.
The following table shows the acreage seeded for and indicated production
of the 1959 winter wheat crop for the states of the Eleventh Federal Reserve District
and comparisons with the crops of 1958 and 1948-57.
The
Q.
~·
WINTER WHEAT
Five Southwestern States
Area
Arizona ••••••••
Louisiana ••••••
New Mexico •••••
Oklahoma •••••••
Texas •••• , • , • , •
Five states •••
ACREAGE SEEDED
{In thousands of acres)
Crop
Crop
Crops
of
of
of
1959
1948-5 7
1958
PRODUCTION
(In thousands of bushels)
Crop
Crops
Crop
of
of
of
1959.!/
1958
1948-57
273
5,034
4,287
130
70
217
4,661
3,696
34
])76
534
S,980
5,267
3,876
1,008
3,276
70,476
64,305
9,792
8, 774
11,891
142,941
114
84
3,904
903
672
])806
3, 724
115 ,440
73,040
1,652
64, 925
35,358
196,780
103' 644
!/
Indicated December 1, 1958.
Short-time average.
SOURCE: u. s. Department of Agriculture.
11
I NT E R E S T RAT E
0 N F HA L 0 ANS
I NCRE AS E D
On December 22 the U. s. Department of Agriculture announced that, effective as of that date, the insured ~ improvement, enlargement, and purchase ~
made by the Farmers ~ Administration will return 4% !.£ the lender instead of 3~%.
This action will strengthen the supply of funds for insured farm real-estate loans.
The additional 1% charge for insurance and administrative costs is unchanged.
The Administrator of the FHA points out that the change in the return on
FHA loans to 4% is expected 1£ increase the participation £E_ all lenders, but especially country banks which have always provided the major portion of the funds needed,
The interest rate on direct farm real-estate loans made by the FHA will remain at 4~%.
L I VE S T 0 C K
Cattle and calf marketings at !.£!!Worth were rather limited on Monday,
December 29, states the AMS. The cattle supply of approximately 1,900 was 300
above the-Small receipts of a week earlier but was about the same as a year ago.
Trading on slaughter steers weighing over 1,100 lbs. was slow, and prices were weak
as compared with those on the preceding Wednesday (the last trading day before the
Christmas holidays). On the other hand, trading on lighter weight steers was active ,
and prices were steady to strong. Good 800- to 1,100-lb. slaughter steers cleared
at $26 to $27.50 per cwt.; most Utility cows, $18 to $19; and Medium and Good 550to 700-lb. stocker and feeder steers, $23 to $28.
Calf offerings totaled approximately 400, or about the same as the weekearlier figure but 43% below the supply on the corresponding date in 1957. Trading
on slaughter calves was active, and prices were steady to strong. Good grades of
slaughter calves brought $27.50 to $29, and stocker and feeder steer calves were
quoted at $30 to $33.
Monday's hog receipts are placed at 600, compared with 700 a week ago and
900 a year earlier. Trading was active, and prices generally were fully steady.
Mixed u. s. No. 1 through No. 3 Grades of mostly 195- to 250-lb, barrows and gilts
sold mainly at $18.75 to $19.
The sheep and lamb~ of about 2,100 was the largest since the first
Monday in August. Trading was active, and prices generally were fully steady with
those of the past Wednesday. Good and Choice 90- to 106-lb. shorn yearlings with
mostly No. 1 pelts brought $16.
P 0 UL T R Y
On Monday, December 29, commercial broiler markets in south Texas were unchanged from the preceding Wednesday, while those in east Texas were about steady,
reports the State Department of Agriculture. The following-prices were quoted:
South Texas, 14¢ per lb., and east Texas, 13¢ to 14¢ (in the latter area~ 58% of
the sales were at undetermined prices).
Area
BROILER CHICK
PLACEMENTS
Week ended
December 20, 1958
Percentage change from
Previous
Comparable
week
week, 1957
Texas ••••••
Louisiana ••
2,126,000
449,000
-11
24
46
22 states ••
30,121,000
2
17
-4
W0 R L D A G R I C U L T U R A L
0 UT T URN NE W H I GH
World agricultural production, after declining slightly during 1957-58,
is expected!.£ reach!!!!. all-time high during 1958-59, according to the Foreign Agricultural Service. The increase should restore per capita output to the record 195657 level, or 3% above the pre-World War II figure. Although world agricultural
trade may be maintained during 1958-59, stocks of such important commodities as
wheat, rice, feed grains, cotton, and coffee probably will be greater at the end of
the season,
J. z. Rowe
Agricultural Economist
@FedFRASER