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Number 48 . . ...

Wednesday, November 29, 1950

Federal Reserve Bank of Dallas
C0 TT0 N
The Secretary of Agriculturea:rln-OU-nced on November 24 that the CCC will
support the price of 1951-crop upland cotton at 90 percent of the parity price as
of August 1, 1951. The price--support will be carried out through . loans to farmers.
The Agricultural Act of 1949 makes price support mandatory for 1951-cr~p cotton
from 75 to 90 percent of parity, when no allotments and quotas are in effect • .
Because of the urgent need of increasing domestic stocks of cotton tpe Secretary
placed the support level at the maximum of the permissive rangeo
The cotton market fluctuated considerably during the past week. On Wednesday, . November 22, Middling 15/16-inch cotton averaged 43.93 cents per pound in
the 10 designated spot markets, 1uhich is the highest price paid this year. However,
prices have been lower since that date and averaged 43.04 cents on Tuesday, November 28.
There is some disagreement as to whether or not the high pric~ paid for
cotton on Wednesday, November 22, established a new record. On that date prices
for December 1950 futures on the New York Cottonlt"Xchange ranged up to 44.14 cents
per pound, basis Middling 15/16-inch cotton. The previous "record" on the Exchange
was 43.75 cents established in 1920, but at that time ' contracts were based on
Middling· 7/8-inch cotton.
Activity in the spot cotton markets of the Southwest was moderate during
the past week, according to the PMA. Producers offered current ginnings freely,
although some are holding for higher prices.
Domestic mill demand for cotton last week was strong for both prompt and
forvrard delivery. Inquiries from foreign spinners were numerous, but sales for
export continued small. Most foreign buyers· were reported to be awaiting export
allocations and ECA procurement authorizations.
Weather conditions over the Southwest area during the past week generally
wete favorable fOr-harvest of cotton remaining in the fields. On the High Plains
most ginners reported that if weather conditions continue favorable harvest would
be in the scrapping stage within two weeks.
Cottonseed prices in Texas and Oklahoma for wagon lot seed, f .o.b. the
gins, increased slightly during the past week, acc.ording to PMA.a The average price
in Texas v.ras dblOl. 30 per ton, vs. ~plOOo 90 per ton a week earlier and ~43.10 a year
ago. In Oklahoma the average price last week was ~j991)60 per ton.
Prices for crude cottonseed oil in Texas advanced during the past week; on
Tuesday, November 28, oilfor December delivery sold for 20-3/4 cents per pound.

Grain prices on the Fort Worth Grain and Cotton Exchange have made only
~inor changes during the past veek,
On Tuesday, November 28, No. 1 hard wheat . sold
for a top price of $2.46-3/4 per bushel--1/2 cent. below a week earlier. No. 2
barley at ')1.55 per bushel was up 3 cents over a week ago.
Tuesday's top prices for corn: No. 2 yellow, ~1~75-1/2 per bushel, about
unchanged from a week ago; No. 2 Hhi te·, f~2. 03-1/2 per bushel, up 1. cent.
No. 2 white oats sold Tuesday for $1.10-J/4. per bushel, or 1-1/4 cents
below a week earlier, while No. 2 ye1low milo at r~2.28 per cwt. was off 3 cents.
Tuesday's prices as compared v.rith a year ago: ·w heat, up 3 cents; oats and
barley, up 16 cents each; and white corn, up 38 cents per bushel. Grain sorghums
were down 2 cents per cvrt.

Number J-iG



We.dnesday, November 29, 1950
Pat;e 2

1 I VE S T 0



Cattle and lamb prices on the ~·ort Worth market have remained relativeJ.y
steady during the past two weeks, while hog prices have declined seasonally. On
Tuesday; November 28, hogs sold for a top price . of ,~18. 25 per cwt., the first time
they have failed to se11 above this· level. s~ nee Ifa.y •. Hog prices have declined · ...
. irregularly since a top price or ~?24. 75 per cwt. rras paid in August 9
Tuesday's top slaughter cattle prices: st·e ers, ~~31. 00; heifers, ~?30. 50;
covvs,. $23.00; and calves, ~30o5'0 p9revrt. These are
or near the highest levels
of the yoar.
Slaughter·1runbs sold Tuesda;v-for a top price of r,~29.00 per cwt., or 25·
cents ·over ·a week earlier.
Choice feeder· and stocker cattle ·?r~ught ~31.00, while feeder lambs sold
· for a top price of ~~27 .. 50 per cwt.


Eig!lt-mbnths '\!\Tool i.~rascontracted in Texas last week at 90 cents per pound,
f:Srease basis, according-:-:C0-PMA. _AJ so, ~?-months wool was ·contracted ·at $1. 03 per
Mohair ' business in Boston and :in Texas last .w eek was at a standstill.
In reviewing the ·1 norld apparel VI ool situation, the latest issue of the
Norld Vfool Digest says that total world supplies of apparel ·vool in the current
year--new production. plU:s stocks--are . Rufficient to per.mi t total yfo;rld consumption,
both military and civilian, at levels consistent T:~ th anticipated demand.
P 0 U L T R Y

· A N' D

:8 G G S


The ·USDA has announced . that no egg r:-upport program will be in effect during 19)1. Purcha·s es of dried e'~gs under the C11rrent program ·will be discontinued
of December 31, 1950. It 1vas stated that . experience this . year has demonstrated
that an ' attempt to keep government acquisition of this comr10t~ity at a ..level 1·rhere
dispos"tion is possible v·ithout substant:lal· loss vmuld require the USDA, under the
sliding-scale theory of the · existing leeis1ation, to reduce the support to a meaningless level, so it v:as decided to discontinue s11pport.
· . Commercial ·hatcheries in Texas produced J.9 million ~hicks during the
month of October, accordhP t<) the BAE offi~e in Austin. This was the largest output on record for the month, and is the fourth cow·ecutive month . in ·Nhich monthly
output e.iCceeded previous monthly records. The October output was 35 percent above
a year ag·o .
·During· the ·pe:riod January throu ,h October, hatcheries in Texas produced
58.8 million chicks--6 percent over the corresnonrtin~ period in 1949.
J anuary-Octobcr egg production i n Texas this year Y'as about 3 percent
ab'ove the same period last year.
Prices of poultry ahd e i:;;gs on the Dallas wholesale market have remained
relatively unchan~ed during No7ember. Tuesday's iJbultry prices: hens, 4 pounds · and
over, 22 cents per pound;· 3 to h pounds, 15 to 1 i 'C e'ntu per pound. Arkansas fryers
are bringing 2h ~ents· per pound, whil locaJ-.. i ryers are ·4 cents Jesse- No. 1 turkeY
hens are selling for 3S to 37 cents per ·pound.
'I1uosday's e r,~,' pric8s: candled rl o. 1 mL~e d , h2 c~ nts; to. 2 mixed, 20
cents; and i o. 2 it.fertile, 45 ·cents P-er ~ozen.


vr. .f. Pritchett
A ri ul+ura l ~ conomist