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Wednesday, FebruaCT.__l_, 1951

Number S.8

Federal Reserve oank of Dallas
G fl .A I N S


Prices of wheat and corn
the-Fort-Worth Grain and Cotton Exchange
advanced dur:lng -the past \~.reek v.Jhile prices of other 0rains made little. net change.
On Tuesday,. February 6 No, 1 ha.rd wheat sold .for a top price of $2. 70-1/4 a bushel
atout 2 cents over a vreek ead ier. NO. 2 yeJ lor corn at $1. 96-1/2 ·p er· 'bushel was
up 5 cents, i.• rhile No. 2 white corn brouc~ht. ~~2 .17-Sff-- up 1 cento
1'op prices of other grains:· 1Jo. 2 barley, ~~L 75 per: bushel; No. 2 white
~ts, ~1.17 per bushel; No. 2 yellcw milo, ~~2°:-··6j-per cwt.
The USDA announced last weeF.the quantities of certain 1950 c.rops . placed
under price ·support by U. S. farmers through _December 1950: (all in bushels) wheat,
181 ·miili.on; barley, 29 million; oats, 14 million; grain s.orghmns, 49 million; and
corn, 18 million.
Hice markets held firm during the weel~ ended J c.1nµary 29, but trading
slackened f ollo ~ ring the announcement of ·price controls, wi tl-.l both millers and .distributors awaitir:g more definite information concerning the operc.tion of the order,
according to the USDAo At Houston No. 2 Blue Bonnet and Patna soJd as high ·as ~~J 1.. 75,
while prices OJ.. Zeni th ranged frorri. $10. 00 to ~~10 ~ 50 per cwt. , milled basis ..
The SecretJ._-y of Agriculture has terrni~ated acreage allotments on 1951-crop
rice. This action was taken, he said, oecause of the need for maximum production to
assure abundant snpplies of rice for probable export under the national defense

C 0 ll M R R C I A L




A N ·n

C I T 1 US

'co~~rcial . vegetables suffered se.. rere damage in all areas of the
District during the-recent cold wave. Subfreez-inr.temperatures· prevailed continuously
for over 3 days in most sections olficial 101".rs repopted to be 10° at Eagle Pass,
12° in the rinter Garden, 19° at Laredo and 18-22° in the Lower Valley. Tops of
root crops were frozen and leaf crops were frozen throughout.. The extent o.f damage
to leaf crops vrn.s ver-J severe
Valley leaf crops were mostly for February and early
March harvest and nil.l not be replanted. The entire early spring tomato
in the Lovver Valley was killed, whj_le heavy losses of potatoes and sweet corn vrere
Damage was seirere in all citrus areas. All fruit contained ice crystaJ s.
Total loss of younr trees is expected to be heavy, and considerabJ e vrood damRge to
older trees is probable. Preliminary reports on utilization of the remainder of the
fruit indicates that most of it wiJ.l be used by the processing plants and marketed
as juice, provided weather conditions favor fuJl utilization of the crop in this
Prices for spot cotton generally have been holding firm, according to the
PMA. However;-t"he cotton exchanges have been posting no spot quotations since the
price control order was issued~
Cotton futures markets suspended trading on Saturday, January 27, and are
still closed. This- isthel ongest period that trading has been suspended in cotton
futures markets since the "bank holiday" in March, 1933.
Cotton ginned in Texas throu~h Januc:.ry 16 totaled 2,8h?,OOO bales, or about
98 percent of theestimated crop, aecordine; to the Bureau of the Census . .




7, 1951
Page 2



T 0 CK

Prices of livestock on the Fort Wo:!'.'th market generally are ho1ding at the
high levels reported last week, the prin.cipalchange being an advance of 75 cents
in hog prices to $22.)0 per cwt.
On Jtmuary 15 prices received by far~ners for bE~ef cattle, lE'.mbs, r:nd veal
calves in the U. 0 . were fromL~l to h3 pex·cent a-oove parity prices as of that date.
Hog prices, on the other hand, avera . , erl 3 percent belon parity. Medium and Good
Spanish and Angora goats in the hair sold in San Antonio last week as high as $16.)0
per cwt. Angora kids reached ~ 10. -~O each.
r:attle slaughter in commercial plants in T8xas j n 19:) o totaled 770 million
pounds, vs. ?5? millfonin 19490 Calf slaughterreached 35.3 million pounds -- up
2 million.. Hog slaughter last year rose to 376 million pounds, vs. 317 million in
1949. Sheep and lamb slaughter, on the other hand, totaled 48 million pounds, or
slightly less than in 1949.
Changes in mP~t production in the U.S. in 1950 as compared with 1949: ·
beef production, up 1-Percent; veal production-,-down G percent; pork production, up
6 ·percent; and mutton and lamb, down 1 percent.
Prices of 1 ool and mohair continued to establish new high levels, according
to the reports of the PEA. Approximately 30,000 fleeces were contracted in Texas
lest week at Glo50 per pound, grease basis.
Some mohair ras contracted last week in Texas at $1.80 for adult and ~~2.30
per pound for kid mohair.
All t~ading in the Boston ool market came to a virtual hault last week,
pending a clarification of the~-pi~ice --cOncrol order. The grease-wool and wool-top
futures exchanges suspended trading until further noticec

MI S C E L 1 A N E 0 U S
Manufacture of Texas dairy products -- butter, ice cream, cheese, etc. -fell 19 percent from November to December and 1N2s 24 percent belovr the production in
December, 1949~ As compared with Dec mber, 1949, the December, J9r;o production of
creamry butter i.ras dmm 49 percent, American cheese output was off 18 percent, while
ice cream manufactu~e rose 7 percent.
The mid-January index of prices received by Texas farmers for all agricultural commodities advanced-lU points, or S percent above the previous month, to
reach a new record high of 380 percent o.!. the 1910-14 average" T -lis marks the third
successive month of record-breaking index levels reported for Texas by the BAEo
VJhile hiESher prices for virtually all farm products contributed to the advance,
chiefly responsible 7ere the substantial increases in prices of meat animals and the
sharply higher averages reported for rnol, most fr;ed grains and hay. Lower prices
than a month earlier 1.-ere recorded for citrus fruits, cottonseed, turkeys and eggs.
Honey production in Texas during 19)0 i.·;o.s a nei. r record of 1), 850, 000
pounds compared with the previous record of 3,373,000 pounds in 191.i.9. There were
317,000 colonies of bees on Tex~s 1arms during 1950 compared with 311,000 in 1949.
Bees averaged 50 pounds per colony last ;rear compared ·with L.3 pounds per coJ_ony in
Increased acrea _e of Ilubam c. nd fadrid clovers has contributed materially to
higher yields

'f. M. Pritchett
Agrictltural Economist