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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERVE BANK OF DALLAS Number 476 Wednesday, February 11, 1959 F 0 R P R IC E R I C :C S UP P 0 R T 1 9 5 9 - C R 0 P On February 2 the U. S. Department of Agriculture announced that the m~l]_~ ~ national average support _Erice for the 1959 ~E. of _Eice will be $4.38 ~ EWt., reflecting 75~ of the February rice EariSt: price. The support price for the 1953 crop was $4.48 per cwt.~ or 75% of the August 1, 1958, parity price. ~~ As under past programs, the price-support program for 1959-crop rice will be carried out through loans and purchase agreements. Loans and purchase agreements will be available through January 31, 1960. The loans will mature March 14, 1960. c c c COTTON P UR C HA S E 1 9 5 8 - C R 0 P L 0 AN T 0 The USDA recently announced that, at the close of business July l!., 1959, the Commodity Credit Corporation will purchase all 1958-crop loan cotton (upland and extra-long staple) on which loans have not been repaid at that time. Until the close of business on July 31, producers and purchasers of loan equities may repay the loans on the cotton and then sell it in the open market. Any loan notes that are sent to local banks for collection at the request of producers or purchasers of equities must be paid at the local banks by the close of business on July 31. Any repayments made by mail must be received by the CCC or the local bank by that date. ~on 1958-crop cotton are available to producers through April 30, 1959. The average loan rates are 31.23¢ per lb. for upland cotton (basis Middling 7/8 11 ) and 53.95¢ for extra-long staple cotton. EXPORT PROGRAM C 0 T T 0 N The cotton export program for 1959-60 was announced by the USDA on February 4. The payment-in-kind program, which has been in effect since August 1, 1958, will be continued and expanded. (Under this program, cotton for export is drawn from commercial stocks, with the exporter earning dollar credits which he uses to buy other cotton from CCC stocks.) The initial~ of export payment under this program will be 8¢ per lb. for cotton shipped on August 1, 1959, or thereafter. The payment rate may be adjusted from time to time during the year to keep u. s. cotton competitive in the world markets, according to the USDA. The "direct sales 11 program, which has been in effect since 1956 and under which CCC-owned cotton--r;-of fered for export at competitive-bid prices, will be discontinued at the end of the current season. T E X A S T 0 MA T 0 0 R D E R R E C 0 MME N D E D The USDA has recommended, subject.!£ grower approval, the adoption of a proposed marketing agreement and order for handling tomatoes grown in the ~ Rio Grande Valley of Texas. Tomato producers in Cameron, Hidalgo, Starr, and Willacy Counties will vote in a referendum to determine whether they favor the proposed program. The growers will be notified of the arrangements for the referendum and will be furnished ballots and copies of the proposed order. P 0 UL T R Y Commercial broiler markets in south and east Texas closed the trading week ended Friday, February 2, on a fully ste~nd;;t~ ~ding to the State Department of Agriculture. Although both markets opened weaker as a result of inclement weather, conditions improved about midweek. Closing prices were 1¢ per lb. lower than a week earlier in south Texas and unchanged to 1¢ lower in east Te xas. T11e followi ng closing prices were quoted: South Texas, 16¢, and east Texas, 15¢ to 1 0¢; however, approximately two-thirds of the sales in the latter area were at undetermined prices. During the corresponding period in 1958, closing prices were: South Texa~ 20¢, with a few at 21¢, and east Texas, 19¢ to 20¢, mostly 19¢. On Monday, February 2, commercial broiler markets were firm in south Te xas and steady to firm in east Texas. Trading was normal to heavy in south Texas, and prices ranged from 16¢ to 19¢ per lb. but were mostly 13¢. In east Texas, trading was normal, and prices were 16¢ to 17¢, although 51% of the sales were at undetermined prices. BROILER CHICK PLACEMENTS Percentage change from Previous Comparable week week, 195 3 Area Week ended January 31, 1959 Texas •••••• Louisiana •• 2,136,000 433,000 -4 9 -5 22 states •• 31,181,000 3 8 14 L I VE S T 0 C K Moderate supplies of ~attle and calves were received at Fort Worth on Monday, February 2, states the Agricultural Marketing Service. The cattl~ ~was an estimated 2,000 head, reflecting increases of 33% over a week ago and 54% over the corresponding date in 1958. Trading on most classes of slaughter cattle was slow, and prices were about steady to 50¢ per cwt. lower than in the latter part of the previous week. Trading on stocker and feeder cattle was active early in the day, and prices were fully steady; however, closing trade was slow, and prices were weak . Mixed Standard and Good grades of 800- to 1,150-lb. slaughter steers sold at $25 to $26; Canner and Cutter cows, $14 to $18.50; and Medium and Good 550- to 650-lb. yearling stocker steers, $24 to $30. Calf marketings are placed at 300, or about the same as on the preceding Monday but 100 fewer than a year ago. Trading on slaughter calves was moderately active, and prices were firm. Good grades of slaughter calves brought $27.50 to $29.25, and stocker and feeder steer calves were quoted at $30 to $33. Monday's hog receipts totaled approximately 900, compared with 1,000 a week earlier and 600 on the corresponding date last year. Prices were mainly steady, with most U. S. No. 1 through No. 3 Grades of 195- to 235-lb. barrows and gilts quoted at $16.75 to $17. Sheep and lamb offerings are estimated at 6,300, which is 75% greater than on the previous Monday~nd 4~ times larger than a year earlier. Prices for slaught er lambs were steady, and those for feeder lambs were steady to 50¢ higher than in the l atter part of the past week. Most Good and Choice 90- to 107-lb. wooled and shor n slaughter lambs with No. 1 and fall-shorn pelts cleared at $17. C C C P R I C E S UP P 0 RT P R 0 G R A MS The CCC's investment in price support programs as of December 31, 1958, t otaled $8.7 b~n, points out the USDA. The cost value of inventories comprised 63% of the amount, and loans outstanding accounted"for 37%. On the corresponding date a year earlier, the CCC's investment was $7.2 billion, of which inventories were 76% and loans outstanding, 24%. Price support operations in the following commodities made up the major portion of the loan total at the end of December 1958: uplan d cotton, wheat, tobacco, corn, and soybeans. J. z. Rowe Agricultural Economist
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