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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS

Number 620

Wednesday, November 15, 1961

CE RT I F I CAT E S
0 N
0 F
I NT E RE S T I NCRE AS E D
Ef fective November 2, the ~ of interest payable on certificates of interest issued to banks and other lending institutions participating in the financing
of price-support loans on 1961 crops and subsequent crops was increased from 2 1/2%
to 3% per year, reports the u. s. Department of Agriculture. The rate of interest
charged producers on 1961-crop price-support loans remains at 3 1/2% per year.
The increase to lending agencies is being made to encourage greater participation by private lenders in the financing of CCC loan programs, according to
the USDA. The increase is !!Q!. retroactive; therefore, lending institutions which
have invested funds in 1961-crop price-support loans will earn interest on their
investments at 2 1/2% per year from the date of investment through November 8 and
3% thereafter.

R A T E

US DA T 0
B E G I N G R A I N STORAGE
RE VI EW
C 0 S T
Beginning November 27, the USDA will review the national grain storage
situation, in order to bring up to date the grain storage cost study conducted by
the Department in 1959. The review - which is scheduled for completion in late
December - is intended to lead toward improvement and more efficient operation of
existing programs under which grain owned by the Conunoditv Credit Corporation is
handled and stored. Cost of storing and handling CCC-owned grains amounts to
about $425 million annually.
I N C 0 ME
FARM
income realized by the Nation's farm operators this year is expected to be around a billion dollars more than the $11.7 billion in 1960, states the
Economic Research Service. This increase would boost realized net farm income to
the highest level since 1953.
The outlook for 1962 points to little change in farm income from the indicated 1961 level. According to the ERS, this forecast of a continuation of the improved farm income situation into 1962 assumes (1) average growing conditions, (2)
no major change in present price-support levels, (3) the probable effects of the
Agricultural Act of 1961, and (4) no serious worsening of the international situation. Also in prospect for next year is a generally stronger demand for farm prod~' reflecting a continuation of the current pickup in economic activity, further
population growth, and continued large exports of farm products.
The~

M 0 RE
MILK
I N P R0 S P E CT
milk production is expected to show a significant increase again next
year, perhaps as much as 2 billion lbs. more than the 125 billion lbs. indicated for
19 61, according to the ERS. Although feed prices probably will be higher, the ~­
feed price relationship likely will still be relatively favorable for larger milk
output in 1962. Some of the expected gain very likely will result from higher production per cow.

u. s.

I MP 0 R T S
S H E E P A N D LAMB
D 0 WN
u. s. imports of sheep and lambs this year are the smallest ~ ~·
Breeding stock accounted for most of the imports during January-August 1961, ac-

cording to the Foreign Agricultural Service. Since no shipments have been received
from Australia this year, practically all of the sheep and lamb imports have come
from Canada.
L I VE S T 0 CK
The cattle ~ at Fort Worth during the ~ ended Thursday, November .2_,
is estimated at 8,500 head, representing decreases of 6% from the previous week and
10% from a year ago. According to the Agricultural Marketing Service, trading on
slaughter classes was moderately active. Slaughter steers sold at prices which
were steady to 25¢ per cwt. higher than a week earlier. Good 915- to 1,225-lb.
slaughter steers sold at $23 to $24, and Utility and Conunercial cows brought $14
to $17.SO. Demand for stockers and feeders was good, and quotations were steady
to strong. Good and Choice 500- to 700-lb. stocker steers cleared at $21.50 to
$26.10.
Calf receipts totaled approximately 1,700, or 100 more than in the preceding week but about the same as a year ago. Killing calves sold at prices which were
strong to 50¢ higher than a week earlier. Good and Choice grades of slaughter calves
were quoted at $23 to $24.SO, and 250· to 500-lb, stocker steer calves brought $23
to $29.50.
At an estimated 1,500, the hog supply was down 6% from both a week ago an d
the comparable period in 1960. Trading was rather uneven each day. The price ·trend
on barrows and gilts was downward until Wednesday and then reversed, Closing quotations were generally 25¢ ·to SO~ lower than a week ago. The majority of the week's
supply of U. s. No. 1 through No. 3 Grades of 190- to 265-lb. butchers cleared at
$15.75 to $16.50.
Sheep and lamb marketings are placed at 8,100, compared with 7,700 in the
previous week and 4,400 a year ago. Prices showed little change from week-earlier
levels. Good and ·choice 70- to 95-lb, wooled and shorn lambs with fall-shorn to
No. 3 pelts were quoted at $15 to $16.
P 0 UL T RY
During the week ~ Friday, November 10, the major Texas commercial
broiler markets opened weaker, reports the State Department of Agriculture. The
market in south Texas continued to weaken, while that in east Texas strengthened.
Both markets closed strong on Friday. Compared with a year ago, trading volumes
were 31% greater in south Texas and 39% larger in east Texas. Closing quotations
in south Texas and the weighted average price in east Texas were both 12.5¢ per
lb, During the corresponding period in 1960, closing prices were 16.5¢ in south
Texas; the weighted average in east Texas was 15.8¢.
On Monday, November Jl., conunercial broiler markets were stronger in south
Texas and steady in east Texas. The following prices were quoted: South Texas,
13¢; and east Texas, 11.7¢ to 12.8¢, with 29% of the sales at undetermined levels.
The Southwest Poultry Exchange at Center, Texas, offered 108,900 broilers
on November 13. Of this total, 87,900 sold at 12.5¢ to 12.8¢ (farm producers absorbed all rejected birds), and 12,000 brought 11.7¢ (buyers absorbed all rejects).

BROILER CHICK
PLACEMENTS

Percent change from
Previous
Comparable
week
week 2 1960

Area

Week ended
November 4 2 1961

Texas ••••••
Louisiana ••

1,759,000
397,000

2
13

4
22

22 states ••

2829862000

3

-1