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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERVE BANK OF DALLAS fomber 500 Wednesday, July 29, 1959 WHEAT MA R K E T I N G Q U 0 T A S AP P R 0 VE D Preliminary returns from a referendum held on July 23 in the 39-state commercial wheat-producing~ show that 80,7% of the farm;rs-v;t"ing favored marke'ti;g quotas on 1960-crop wheat, according to the U. S. Department of Agriculture. Since uheat marketing quotas are effective on approval by two-thirds or more of the farmers voting in the referendum, marketing quotas will be in effect for the 1960 crop. The referendum marked the ninth time the Nation's farmers have voted favorably on arketing quotas for wheat. W0 R L D C 0 T T 0 N P R 0 S P E C T S Cotton acreage in some major foreign cotton-growing countries is down from a year ago, according to early reports. The Foreign Agricultural Service attributes the reduced plantings this spring to (1) tighter cotton production credit, (2) lower prices and weaker demand for cotton in world import markets, and (3) larger prospect ive world supplies next season. The total acreage planted in Mexico is believed t o be about 30% smaller than last year, and Egyptian acreage is unofficially estimated to be down approximately 10%. Acreage decreases are also reported in Central erica, the Near East, Greece, and some other areas. The reduction in acreage, howe ver, is not likely to result in a proportionate decline in output since the sharpest acreage decreases are probably in marginal areas. GU I DE S F 0 R WI N T E R VE GE T ABL E S AND P 0 T AT 0 E S A 3% reduction in the acreage for 1960-crop winter vegetables for fresh use is recommended by the USDA in its first acreage-marketing guides for 1960. The guides also recommend a winter potato acreage for 1960 equal to that of 1959. T RAD I NG F UT UR E S During the fiscal year ended June 30, 1959, futures trading in agricult ural commodities in the Nation continued to provide substantial ''hedging" markets although the total volume of trading declined, reports the USDA. In releasing data from the Commodity Exchange Authority, the Administrator pointed out that 11merchandisers and processors of wheat, corn, and soybeans continued to depend on hedging t o reduce price risks, even though market prices ranged narrowly during the year." F E E D 0 N AND CALVES M 0 R E C AT T L E As of July _!., 1959, there were 4. 7 million head of cattle and calves on fe ed in the !l major feeding states (Ariz~, California, Colorado, Illinois, Indi ana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Texas), points out the Agricultural Marketing Service. The number was a record high J u ly 1 total for the series which began in 1955 and was ~ lOio from the yeare arlier level. Cattle feeders in the 13 states expect !.£market 3.2 million of t hese cattle and calves in July, August, and September. If these intentions are c arried out, marketings in this quarter would be one-fourth greater than the mar ketings from the July 1, 1958, inventory during the comparable 3-month period last year. L I VE S T 0 CK Rains over a wide ~ resulted in a sharp decline in Fort Worth cattle marketings during the week ended Thursday, July 23, points out the AMS, Demand continued good for thin cattle and calves to be finished on the excellent crops and pastures, but supplies of these animals were very limited, Cattle receipts totaled an estimated 6,500, compared with 6,700 a year ago. Prices were steady to $1 per cwt. lower than a week earlier, with the following quotes: Good 800- to 1,050-lb. slaughter steers, $26 to $27.75; Utility and Commercial cows, $16 to $18. S and Medium and Good 500- to 600-lb. stocker aud feeder steers, $23.50 to $30. The calf supply of 2,500 reflected gains of 39% over the previous week and 32% over a year earlier. Trading on slaughter calves was active, and prices were unevenly steady to 50¢ higher than at the preceding week's close. Good and Choice grades of killing calves sold at $28.50 to $29, and 350- to 475-lb. stocker and feeder steer calves cleared at $30 to $34.50. Hog offerings totaled 3,000 - up 100 from a week earlier and 1,300 from the corresponding period in 1958. In line with lower prices at other markets, butcher hog prices at Fort Worth declined daily after Monday. Closing prices were generally $1 lower than a week earlier, with most mixed U. S. No. 1 through No. 3 Grades of 190- to 250-lb. barrows and gilts quoted at $13.75 to $14.25. Sheep and lamb marketings were 6,100 head, compared with 10,300 in the preceding week and 5,800 a year ago. Trading was fairly active, and prices ranged from strong to 50¢ lower than in the latter part of the previous week. Good and Choice 75- to 87-lb. slaughter spring lambs brought $21 to $21.50. P 0 UL T R Y During the week ended Friday, July 24, the Texas commercial broiler ~ kets opened generally weaker than at the preceding week's close, reports the State Department of Agriculture. In south Texas the 1¢ per lb. week-end price decline held unchanged throughout the trading period, while in~ Texas, prices weakened fractionally up to midweek when a slight recovery started. At the market's close, the undertone was fully steady in south Texas but continued slightly unsettled in east Texas. Closing quotations were: South Texas, 15¢; and east Texas, 14~¢ to 15 with 65% of the sales at undetermined prices. During the corresponding period in 1958, closing prices were 18¢ in south Texas; and 17¢ to 18¢, mostly 17~¢, in east Texas. On Monday, July !:1, commercial broiler markets were firm in south Texas and stronger in east Texas. The following prices were quoted: South Texas, 16¢ per lb.; and east Texas, 14~¢ to 15¢, although 46% of the sales in this area were at undetermined prices. Area BROILER CHICK PLACEMENTS Week ended July 18 2 1959 Percentage change f~ Comparable Previous week week 2 1958 Texas ...•.• Louisiana .. 2,157,000 354,000 -6 -8 -15 -25 22 states .. 32 936.000 0 -3 J. z. Rowe Agricultural Economist
