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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK Q.F DALLAS

umber 404

Wednesday, April 0, 1959

CE RT I F I CAT E S
0 N
0 F
INTEREST
Effective May l, 1959, the~ of interest payable on
in terest issued by the Commodity Credit Corporation to banks and
i nstitutions for financing 1958-crop price support loans will be
~ 1/2% to 1 3/4% per ~' according to the U. S. Department of
r a te of interest charged to producers on 1958-crop price support
at 3 1/2% per annum.
RAT E

I NCRE AS £ D
certificates of
other f inane ial
increased from
Agriculture. The
loans will remain

C 0 T T 0 N P R I C E
S UP P 0 R T
P R 0 G R AM P R 0 V I S I 0 N S
The USDA recently announced the following provisions of the price suppo rt
program for 1959-crop cotton.
1.

Support for Choice (~) upland cotton will be limited to purchases
from eligible producers of eligible cotton stored in approved
warehouses or on which bills of lading have been issued for
shipment to approved warehouses,

2.

Support for Choice (B) upland cotton and for extra-long staple
cotton will be limited to loans to eligible producers on eligible cotton stored in approved warehouses or on which bills of
lading have been issued for shipment to approved warehouses.

Purchases and loans will be made through April 30, 1960, with the loans
ma turing on July 31, 1960.

RE C L AS S I NG
0 P T I 0 N 0 N C 0 T T 0 N T 0
BE
DR 0 P P E D
The USDA has announced that upland cotton sold E.y the CCC after August l,
1959, will be sold without an option by the purchaser to have the cotton reclassed.
This change will apply to all sales of upland cotton acquired by the CCC, including
those from 1959-crop Choice (A) cotton, 1958-crop cotton on which loans mature on
Ju ly 31, and inventory cotton from the 1957 and prior crops.

P R I CE S
AGR I C UL T URAL
The index of prices received by the Nation's farmers increased fractionally
during the month ended March 15 to 244% of the 1910-14 base, points out the Agricult ural Marketing Service-:---T'ile March index was almost 5% below the year-earlier level.
The parity index (which reflects prices paid for commodities and services, plus
interest, taxes, and wage rates) at mid-March was 298 - up slightly from a month
ago and nearly 2% higher than a year earlier. The advance during the month, which
res ulted mainly from higher prices of production goods, raised the parity index to
the peak establ i shed in January of this year. The parity ratio of 82 was unchanged
f rom mid-February but was 6% below a year ago.
The i ndex of prices received by Texas farmers and ranchers for all farm
products rose 3% during the month ended March 15. The index, at 288% of the 1910-14
base, was 5% above the year-earlier figure. The all-crops index advanced 9% during
the month, while the livestock and livestock products index decreased 2%.

P 0 UL T R Y
The Texas commercial broiler markets held steady during the week ended
Friday, April 3, reports the State Department of Agriculture. Closing~ces ·
which wer:e-;ainly 1¢ per lb. lower than a week earlier - were 16¢ in south Texas
and 15¢ to 16¢ in east Texas. In the latter area, 62% of the sales were at undetermined prices.
The Texas broiler markets were firm on Monday, April &, with the following prices quoted: South Texas, 17¢, and east Texas, 15¢ to 16¢ (62% of the sales
in east Texas were at undetermined prices).

BROILER CHICK
PLACEMENTS

Percentage increase from
Previous
Comparable
week
week, 195

Area

Week ended
March 28, 1959

Texas .•••••
Louisiana ••

2,475,000
505,000

9

2

2

11

22 states .•

36,603,000

1

21

L I VE STOCK
Cattle marketings at Fort Worth during the week ended Thursday, April l,
totaled an estimated 4,600 head, reflecting declines of 12% from the preceding wee
and 16% from the corresponding period in 1958, points out the AMS. Trading on
slaughter steers and heifers was active during the first 2 days of the week, and
prices were strong; during the remainder of the period, trading was slower, and
prices declined. Trading on stockers and feeders was active, and prices were firm
with those in the latter part of the previous week. The major portion of the Good
800- to 1,100-lb. slaughter steers sold at $27.50 to $28 per cwt.; Commercial cows,
$19.50 to $21; and Medium and Good 550- to 700-lb. stocker and feeder yearling
steers, $24 to $30.
Calf receipts are placed at 1,500, or about 200 more than both a week
earlier and a year ago. Trading on slaughter calves was fairly active, and prices
were firm. Good grades of slaughter calves brought $28 to $30, and stocker and
feeder calves were quoted at $30 to $34.
The hog supply of 2,500 head was about the same as a week ago but 7% below the year-earlier level. Prices of butchers and sows were mostly steady with
those in the latter part of the past week. Most mixed U. S. No, 1 through No. 3
Grades of 190- to 245-lb. barrows and gilts cleared at $16.50 to $17.25,
Sheep and lamb offerings were an estimated 17,800, compared with 15,700
a week ago and 20,800 during the comparable period in 1958. Trading was uneven.
Prices of slaughter spring lambs were steady to 50¢ higher than in the latter part
of the previous week, and those for old-crop slaughter lambs were steady. Good and
Choice 80- to 93-lb. slaughter spring lambs sold at $20 to $21.50.
ME AT
P R 0 DUCT I 0 N
The national output of red meat during January-February amounted to 4.2
billion lbs., reflecting a 4% gaiU-Over the corresponding months in 1958, according
to the AMS. Production of beef and veal was down 5% and 24%, respectively, while
the outturn of pork was up 17% and lamb and mutton was 22% greater than the
year-earlier level.

J. z. Rowe
Agricultural Economist