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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS
umber 493
Wednesday, June 10, 1959
1 9 6 0 - C R 0 P
WH E A T
On June 1 the Secretary of Agriculture took the following actions on
1960-crop wheat:
1. Proclaimed marketing quotas on the 1960 crop. This seventh
successive proclamation of wheat marketing quotas is required
by a wheat supply which is 99.6% above the normal supply level.
2. Proclaimed a national wheat acreage allotment of 55 million
acres, which is the minimum permitted by law.
3. Announced individual state shares of the national allotment.
4. Set July 23, 1959, as the date for a referendum to determine
producer approval or disapproval of quotas.
5. Announced a 39-state conrraercial and a 10-state noncommercial
wheat-producing area for 1960.
The 1960 acreage allotments for the commercial wheat-producing states of
the Eleventh Federal Reserve District (and comparisons with 1959 allotments) are:
Arizona, 30,042 acres (23,708); New Mexico, 478,681 acres (476,822); Oklahoma,
4,865,230 acres (4,874,312); and Texas, 4,092,251 acres (4,099,094).
FARM L. A .ND
SALES
BY
LAND
C 0 NT RAC T
According to a report of the U.S. Department of Agriculture, sales of
farmland financed by land contract ia the Nation have almost doubled since 1946.
In land contract transa'Ctions, the seller deals directly with the buyer. No
mortgage is written, and the buyer does not take title to the property until his
instalment payments add up to a substantial portion of the selling price.
During a recent 12-month period, sellers financed 43% of all farmland
sales. The dollar volume involved in sales contracts was about the same as that
extended by credit institutions (including Federal Land Banks) for farmland purchase.
L 0 C AT I 0 N
D I F F E R E N T I AL S
F 0 R
C 0 T T 0 N
The USDA has announced the location differentials which will be applicable
to Choice (~) and Choice (~) upland cotton under the price support program for the
1959 cotton crop.
Purchase rates for Choice (A) cotton and loan rates for Choice (B) cotton will vary according to location. For the base ~ity (Middling 1 11 cotton),
the purchase-price will vary from a high of 35-:11¢ per lb, gross weight in the
mill area of the Carolinas to a low of 33.31¢ in California and Arizona. The loan
rate will vary from a high of 29:41¢ per lb. in the mill area to a low of 27.6~
in California and Ariz~ These variations, at average location, ~ based on a
purchase rate of 34.10¢ per lb. for Middling l" Choice (A) cotton and a loan rate
of 28.40¢ per lb. for Middling 1 11 Choice {B) cotton.
EXPORTS
MEAT
R I S E
Exports of red ~ and ~ products from the United States during the
first quarter of this year amounted to 47.2 million lbs., reflecting a 13% gain
over the corresponding period in 1958. According to the Foreign Agricultural
Service, the increase resulted from a sharp ~ in exports of pork and variety
meats.
P 0 U L T R Y
Broiler prices in the ~ major Texas sommercial broiler ~ show
divergent trends during the week ended Friday, June 1, according to the Texas
Department of Agriculture. ~~
In south Texas, prices declined approximately l cent per pound early in
the week, but quotations in east Texas generally held unchanged from the previous
week close. Closing prices were generally 15 cents in both areas although 61
percent of the sales in east Texas moved at undetermined prices. Closing prices
were 21 cents in both areas during the correspondigg period in 1958.
On Monday, June 8, prices were steady in south Texas following a general
1 cent price advance during the week end to 16 cents per pound •. The market was
slightly weaker in east Texas with most sales quoted at around 15 cents per pound.
Approximately 48 percent of the birds were sold at undetermined prices.
BROILER CHICK
PLACEMENTS
Area
Week ended
May 30, 1959
Percentage change from
Previous
Comparable
week
week, 1958
Texas ••••••
Louisiana ••
2,200,000
423,000
5
7
-27
-21
22 states ••
33 892,000
0
-7
L I VE S T 0 CK
The cattle supply at !£!:! Worth during the week ended Thursday, June ~'
is placed at 9,600, or one-fourth larger than a week ago. According to the
Agricultural Marketing Service, the supply is 5% below the corresponding period
in 1958. Trading on slaughter steers and heifers was slow, and prices were 50¢
to $1 per cwt. lower than in the preceding week. On the other hand, trading on
stockers and feeders was fairly active, and prices were fully steady. Good 750to 1,150-lb. slaughter steers sold at $27 to $28.50; Commercial cows, $19 to $20;
and Medium and Good 550- to 650-lb. stocker and feeder steers, $24 to $30,
Calf marketings totaled 2,100, which was about the same as a week earlier
but 200 less-t°han a year ago, Trading on good slaughter calves was active, and
prices were strong to 50¢ higher than in the previous week. Trading on other grade
was slow, and prices were weak, Good slaughter calves cleared at $28 to $30; Good
and a few Choice stocker and feeder steer calves brought $30 to $36.
A total of 3,700 hogs was received at Fort Worth during the week ended
June 4, compared with 3,lOO~the preceding week and 2,100 a year earlier. Butche r
hogs sold at prices which were steady to 25¢ lower than a week ago. Most U. s.
No. 1 through No. 3 Grades of 190- to 240-lb. barrows and gilts were quoted at
$16 to $16.50.
Sheep and lamb offerings of 23,400 reflected declines of 37% from the
previous week an~l% from the year-earlier level. (The decrease from a week ago
resulted largely from the rather heavy rains in the marketing territory.) Prices
were mainly steady with those in the la~part of the preceding week. Most
Good and Choice 70- ,. to .90-lbslaughter spring lambs sold at $22.50 to $24.
J. Z, Rowe
Agricultural Rconomist
@FedFRASER