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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS
Number 555
Wednesday, August 17, 1960
NAT I 0 N
I
s
B I GGE S T
C R 0 P
YE AR
I N
P R 0 S P E C T
Gains in yield prospects for several major crops during July give promise
of making 1960 the Nation's biggest crop year, according to the Agricultural Marketing Service. Corn prospects increased during the month, and winter wheat and oats
outyielded earlier expectations. On the other hand, the outlook for spring wheat
and barley declined as a result of hot, dry weather in the major producing states.
The all-crop production index, as of August 1, is placed at 119% of the
1947-49 average, or 1% above the re cor d of 1958 and 1959. The indexes for the food
grain and oilseed group-;-ar; substantially above yea-r:;arlier levels, accounting
for a major portion of the gain in the over-all index and counteracting the lower
prospects for the feed grain group. The composite yield per~ index (covering
28 leading crops) is 138, compared with 135 in 1959 and the record 143 in 1958.
P R 0 DUC T I 0 N
C 0 T T 0 N
1 9 6 0
Based on conditions as of August !, the 1960 national cotton crop is estimated at approximately 14.5 million bales, according to the AMS. A crop of this
size would be 1% below the 1959 output but 6% above the 10-year (1949-58) average.
As compared with a year ago, generally lower yield prospects more than offset the
3% increase in acreage for harvest. The indicated yield per~ of 447 lbs. is
15 lbs. less than the 1959 yield but is 102 lbs. above average.
The following are the prospective 1960 cotton production figures for the
states of the Eleventh Federal Reserve District (and outturns for 1959): Arizona,
860,000 bales (715,000); Louisiana, 500,000 bales (492,000); New Mexico, 300,000
bales (323,000); Oklahoma, 405,000 bales {381,000); and Texas 4,375,000 bales
(4,416,000).
RE AC H P E A K
A G R I C U L T U R A L EXPORTS
The volume of Q. ~. agricultural exports reached an all-time high in
1959-60, reports the Foreign Agricultural Service. When valued in constant dollars
(1952-54 average prices), the export volume during the past fiscal year is estimated
to have been about 30% above that in 1958-59 and 3% greater than the previous record
volume in 1956-57. The value of U. S. agricultural exports in 1959-60, at $4,515
million, was the second hi;hest of record - exceeded only by the peak $4,728 million
in 1956-57.
P R 0 DUCT I 0 N
W 0 0 L
1 9 6 0
shorn wool production for 1960 is expected to be the largest in 14
years, points out the AMS. At an estimated 265 million lbs. {grease basis), the
output would be 3% above that in 1959 and 15% greater than the 10-year (1949-58)
average.
I n Texas - the leading sheep-producing ~ - the 1960 wool clip is placed
at 49.7 million lbs., or 7% above the 1959 production and the largest outturn since
1950. The gain from the year-earlier volume is the result of the larger number of
sheep shorn, a s the average weight per fleece is slightly lower.
Q.
~·
L I VE S T 0 C K
Cattle and calf receipts at Fort Worth during the week ended Thursday,
August .!l, were below those in the preceding week as a result of a decreased demand
for stocker cattle and widespread heavy rains over the marketing territory, according to the AMS. The cattle~ of about 10,600 compared with 10)800 in the previous
week and 6,000 during the corresponding period of 1959. Closing quotations for Good
and Choice slaughter steers were steady to 25¢ per cwt. higher than a week ago, while
those for other grades were steady to weak. Good and Choice 925- to 1,215-lb. slaughter steers and yearlings cleared at $22 to $25, and the majority of the Utility and
Commercial cows brought $13.50 to $15. Prices for stockers and feeders declined 50¢
to $1 at the beginning of the week but were not materially changed in later trading.
Medium and Good 500- to 700-lb. yearling stocker steers brought $19 to $23.50.
The calf supply of approximately 1,800 was down 28% from a week ago and 5%
from a year earlier. Prices of killing calves declined $1 at the beginning of the
week, but Good and Choice grades later regained about one-half of the loss. Mixed
lots of Good and Choice slaughter calves sold at $19 to $21, and Medium and Good
stocker steer calves weighing less than 500 lbs. were quoted at $17.50 to $24.50.
A total of 2,200 hogs was received at Fort Worth during the week ended
August 11, or 300 more than a week ago but 200 fewer than the year-earlier level.
Trading was active early in the week but was slow after Tuesday. Barrows and gilts
sold at prices which were $1 to $1.50 lower than in the latter part of the previous
week. Mixed U. s. No. 1 through No. 3 Grades of 185- to 245-lb. butchers cleared
mainly at $17.
Sheep and~ offerings of an estimated 7,000 were 11% below those in the
previous week but were 75% above the comparable date last year. Prices of slaughter
lambs were 50¢ to $1 lower than a week ago, with most Good and a few Choice animals
quoted at $17.
P 0 ULT R Y
During the week ended Friday, August 12, the principal Texas commercial
broiler markets opened fully steady in east Texas and steady in south Texas, reports the State Department of Agricultur;:- At the close of trading, prices had declined slightly in east Texas but remained steady in south Texas. Trading volumes
ranged from light to moderate. Friday prices were 17¢ per lb. in south Texas and
15~¢ to 16~¢ in ~ ~, although 29% of the sales in the latter area were at
undetermined levels. For the comparable week in 1959, closing quotations were:
South Texas, 16¢; and east Texas, 15¢.
Friday's offerings at the Southwest Poultry Exchange totaled 289,400
broilers, of which 90,400 brought 15~¢ to 16¢ (farm producers absorbed all rejected
birds) and 23,000 sold at 15.6¢ to 15.7¢ (buyers absorbed all rejects).
The ~ commercial broiler markets were slightly weaker on Monday,
August 15. The following prices were quoted: South Texas, 16~¢, with a few sales
at 16¢; and east Texas, 15¢ to 16¢ (23% of the sales were at undetermined levels).
Area
Week ended
August 6, 1960
Percentage change from
Previous
Comparable
week
week, 1959
BROILER CHICK
PLACEMENTS
Texas •.•.••
Louisiana ••
2,037,000
360,000
-4
-7
-17
-6
22 states ••
32,880,000
-2
5
J.
z.
Rowe
Agricultural Economist
@FedFRASER