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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERV E BANK OF DALLAS Number 528 Wednesday, February 10, 1960 S UP P 0 RT L E VE L S F 0 R 1 9 6 0 - C R 0 P COTTON Price support levels for 1960-crop upland cotton were announced on January 29 by the U. s. Department of Agriculture. For producers who elect the Choice (A) program with "regular " acreage allotments, the available support will be 75% of the February 1960 parity price; for those who select the Choice (~) program with 40% larger acreage allotments, the available support will be 60%. The dollars-and-cents levels to reflect these percentages of parity are 28.97¢ per lb. for Choice (A) and 23.18¢ per lb. for Choice (B), compared with 1959 price support levels of 30.40¢ per lb. and 24.70¢ per lb. for Choice (A) and (B), respectively. In accordance with prevailing legislation, these 1960 supports ~ final. E F F E CT S 0 F C 0 NS E R VAT I 0 N RE S E R VE Cropland which has been producing substantial quantities of surplus crops in recent years will be held ~ of production in 1960 under Conservation Reserve contracts, according to the USDA. Under the Conservation Reserve, farmers contract to withhold general cropland from production for periods of l to 10 years while carrying out soil, water, and wildlife conservation practices. Nationally, an estimated 28 million ~ will be under contract in the 1960 program. The following table shows the acreage and production estimates for the leading crops. Former cropland use Corn •••••••••••••••••••••••••••• Wheat ••••••••••••••••••••••••••• Cotton •••••••••••••••••••••••••• Peanuts ••••••••••••••••••••••••• Tobacco ••••••••••••••••••••••••• Oats •••••••••••••••••••••••••••• Barley •••••••••••••••••••••••••• Soybeans •••••••••••••••••••••••• Sorghum grain ••••••••••••••••••• Flaxseed•••••••••••••••••••••••• Cropland hay and pasture •••••••• 1 9 Marketing growers voting in a figures. In Texas, voted for marketing Former acreage Normal production 4,600,000 3,100,000 660,000 148,000 15,000 4,100,000 1,600,000 1,100,000 3,800,000 600,000 5,000,000 183,200,000 bushels 61,600,000 bushels 490,000 bales 132,000,000 pounds 23,300,000 pounds 139,600,000 bushels 42,500,000 bushels 21,200,000 bushels · 109,000,000 bushels 4,400,000 bushels 7,600,000 tons (hay equivalent) 6 0 R I C E MA R K E T I N G Q U 0 T A S quotas for the 1960 rice crop were approved by 90.5% of the referendum on December 15, 1959, according to the final USDA 85.3% of the rice farmers voting approved quotas, and 95.2% quotas in Louisiana. P R 0 M0 T I 0 N 0 F F ARM P R0 DUCT S During the 1958-59 fiscal year, groups, such as farmer cooperatives, commissions, associations, and state departments of agriculture spent about $67 million for promotion of agricultural products, according to the USDA. Cooperatives allocated about 65% of their promotional investment to advertising. More than 50% of the total promotional expenditure was for advertising; approximately 23%, for public relations and consumer education; and an estimated 17%, for merchandising aid. L I VE S T 0 CK The cattle supply at Fort Worth during the week ended Thursday, February ~ ' totaled an estimated 5,100 head, representing a 14% decrease from the previous week but a 34% gain over the comparable period in 1959, according to the Agricultural Marketing Service, Trading on Good and Choice slaughter steers and heifers was fairly active, and prices were mainly steady with those in the preceding week, Most of the Good and Choice 1,050- to 1,205-lb, commercially fed steers sold at $23 to $24 per cwt.; Canner and Cutter cows, $12 to $16; and Medium and Good 700- to 935-lb, stocker and feeder steers, $20 to $24.25. Calf receipts are placed at 2,000, which was 500 less than a week ago but 1,200 above the year-earlier figure. Trading on slaughter calves was moderately active; and closing prices were generally strong, with some of the better qualities selling at 50¢ to $1.50 higher than in the previous week, Good and Choice slaughter calves brought $23.50 to $24.50, and Medium and Good stocker steer calves sold at $23 to $27. During the week ended February 4, 2,600 hogs were received at Fort Worth reflecting a gain of 4% over both a week earlier and a year ago. Prices of butchers were steady to 50¢ lower than in the latter part of the past week. Most mixed U. s. No, 1 through No. 3 Grades of 190- to 260-lb. butchers were quoted at $12.50 to $13. Sheep and lamb marketings are placed at 9,200, compared with 7,500 in the preceding week and 9,600 in the corresponding period in 1959. Prices for shorn slaughter lambs were mostly 50¢ higher than a week ago, while those for other classe s were steady. The majority of the Good and Choice 90- to 105-lb. wooled and shorn slaughter lambs with No, 1 and fall-shorn pelts sold at $17.50 to $18. P 0 UL T R Y During the ~ ended Friday, February 2, the major Texas commercial broiler markets opened steady, reports the State Department of Agriculture. Trading volumes were light !Q. moderate. Friday quotations were 18¢ per lb. in south Texas and 17¢ in east Texas, with 71% of the sales in the latter area at undetermined leve ls. During the comparable period in 1959, closing prices were: South Texas, 16¢, and east Texas, 15¢ to 16¢. On Friday afternoon, the Southwest Poultry Exchange offered 156,300 broilers of which 124,900 were sold (including 53,400 off-quality birds), Selling prices for guality broilers were: 8%, at 16.6¢; 28%, at 17.2¢ to 17.3¢; and 64%, at 17.6¢ to 17.7¢. Commercial broiler markets were steady in south ~ and steady to fully steady in~ Texas on Monday, February~. Quotations were 18¢ in south Texas, wit h one light load at 18~¢, and 17¢ to 17~¢ in east Texas (50% of the sales in the latter area were at undetermined prices). Percentage change from Previous Comparable week week, 1959 Area Week ended January 30, 1960 Texas •••••• Louisiana •• 2,175,000 383,000 3 3 -12 22 states •• 33 , 184 , 000 2 6 BROILER CHICK PLACEMENTS J. z. Rowe Agricultural Economist 2
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