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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERVE BANK OF DALLAS Number 545 Wednesday, June 8, 1960 P R 0 DUCT I 0 N C 0 S T S FARM farm production expenditures in 1960 are likely to be higher than the $26 billion estimated for 1959, points out the Agricultural Research Service, The average of prices paid for production goods and services in April 1960 was up slightly from a year earlier despite lower prices for feed and livestock, which accounted for approximately 28% of all production expenses in 1959. The ~ of production items from nonfarm sources probably will continue to increase, and prices of most of these items may be higher in 1960 than last year, Wage ~ for hired labor are expected to advance, although total expenditures for hired labor may be about the same as those in 1959. Interest payments and property taxes probably will be substantially higher, while total expenditures for livestock and feed may be lower. The table below shows percentage changes in £.2.2! ~ and prices paid by the Nation's farmers for major groups of production items this spring from both a year earlier and the 1947-49 average. g. ~· Class of expenditure Cost rates Taxes (annual average) ••••••••••••••••••••••••• Wage rates (April!) ••••••••••••••••••••••.•••• Price paid Seed (April 15) •••••••••••••••••••••••••••••••• Farm machinery (March 15) .••••••••••••••••••••• Farm real estate (March 1) ••••••••••••••••••••• Motor supplies (March 15) .•••.••••••.•.••••.••• Building and fencing material (March 15) ••••••• Motor vehicles (March 15) •••••••••••••••••••..• Farm supp 1 ies (March 15) .•••••••••••••••.•••••• Fertilizer (April 15) •••••••••••••••••••••••••• Feed (April 15) ••••••••••••••.••••••••••••••••• Feeder livestock (April 15) •••••••••••••••••••• Percent change this spring from 1947-49 average 1959 5 94 51 6 6 -12 4 59 3 0 73 24 33 47 0 0 11 6 -2 -4 -14 13 1 1 S 0 A P I N T 0 L E S S 0 IL S G 0 ING F A T S AND The quantity of fats and oils used in soap in the United States during 1959 totaled 925 million lbs., or 70 million lbs. less than in 1958 and the smallest amount since 1912, reports-t°he Agricultural Marketing Service. However, total !!2!!;food ~of fats and oils reached a record 4.1 billi.£!!. lbs., compared with 4.0 billion lbs. in the preceding year. The decline in use of fats and oils in soap was more than offset by a sharp rise for other industrial products, including expanded use of fats in chemicals and animal feeds. L I VE S T 0 CK Opening of the ~ auction facility at the Fort Worth Stockyards on Thursday, June £, was a factor in the unusually big cattle ~ on that date, which was the largest for any Thursday since June 18, 1953. Cattle marketings for the week ended June 1 were an estimated 12,000, representing gains of 17% over a week earlier and 28% over the corresponding period last year, according to the AMS. Demand for slaughter steers and heifers was fairly broad, and prices advanced 25¢ to 50¢ per cwt. The majority of the Good and Choice 905- to 1,210-lb. slaughter steers brought $25.50 to $26.75, and Utility and Commercial cows were quoted at $14.50 to $16.50. Demand for high-Medium and Good stockers was fairly broad, and prices were fully steady. On the other hand, movement of lower grades was slow, and closing quotes were weak to $1 lower than in the preceding week. Prices of Medium and Good 500- to 600-lb. stocker yearling steers ranged from $18 to $25. Calf receipts of about 2,900 were 200 more than in the previous week and 900 greater than a year ago. Closing prices for killing calves were generally steady with the week-earlier levels. Most Good slaughter calves brought $23 to $25, and Medium and Good 300- to 475-lb. stocker steer calves cleared at $22 to $25. The hog supply totaled approximately 2,600, or 19% below a week earlier and 28% fewer than a year ago. Quality of the animals was generally better than in the preceding 2 weeks, and closing prices of barrows and gilts were 25¢ to $1 higher. Mixed U. s. No. 1 through No. 3 Grades of 190- to 250-lb. butchers brought $15 to $16. Sheep and lamb offerings of 32,500 compared with 41,800 in the previous week and 23,300 during the corresponding period in 1959. Trading on slaughter classes was moderately active, and closing quotations were steady to 50¢ higher than the preceding week's low close. Good, Choice, and Prime 75- to 105-lb. spring lambs brought $20 to $22.50. P 0 UL T R Y During the week ~ Friday, ~ 1, the major ~ commercial broiler markets opened about steady in ~ Texas and steady in south Texas and held steady through the close, according to the State Department of Agriculture. Trading vol~ increased during the week, indicating an improved demand. Friday quotations were 17¢ per lb. in south Texas and 17~¢ in east Texas, although 73% of the sales in the latter area were at undetermined levels. During the comparable period in 1959, closing prices were 15¢ in south Texas and 14~¢ to 15¢ in east Texas. The Southwest Poultry Exchange offered 121,600 broilers on Friday, selling 62,800 at 17~¢ to 17.9¢ (buyers absorbed 3% of rejected birds) and 21,700 at 17.2¢ to 17~¢ (buyers absorbed all rejects). On Monday, June ~' commercial broiler markets were stronger in south Texas and fully steady in east Texas. Prices were: South Texas, 17¢ to 18¢, mostly 18¢; and east Texas, 17~¢ to 17.6¢ (46% of the sales were at undetermined quotes). BROILER CHICK PLACEMENTS Percentage change from Previous Comparable week week, 1959 Area Week ended Ma~ 28, 1960 Texas •••••• Louisiana •• 2,706,000 481,000 -4 2 12 22 states •• 39 2 715~000 1 15 J. z. Rowe Agricultural Economist 15
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