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AGRtS_Uitrpi.?AL"NEW s


OF THE i;,-EJ!~K .....


Ma:t_ 2.3, 1951

Federal rteserve Bank of Dallas

C0 T T0 N
Spot cotton prices generallyare quoted at or near ceiling levels . this
week. Ifo1i~rever, cotton futures continue to drift downwardo October 1951 futures · on
the New Orleans Exchange-Closed at 38.89 · cents on Tuesday, May 22, compared with
· 39.47 a week earlier and ~1.59 two months ago.
The USDA announced ·last week further details concerning its price support
program for the 19~1 cotton crop. The CCC ~ill make interim price sup~ort loans-~
availdble to eligible producers in the early harvesting areas on 1951-crop upland~
cotton prior to August 1, 1951 at 29.68 cents per pound, basis Middling 7/8-ihch '
cotton ~t average location. P:cemiurns and discounts for all quali tiesofi~lupland cotton were also announced~
The interim loan rate for 1951-crop Middling 15/16-inch cotton will be
125 points (L 25 per pound) above the rate for Liiddhng7/B=inch cotton, or 30"93
cents per pound. The interim price s~pport loan rate will be in effect until the
final loan rate is announced about August 1, 19~1.
Should parity as of Au~ust 1, 1951 be at the present level, the CCC loan
rate for the 1951 cotton crop will be about 31060 cents per pound for Midrlling
15/16-i~ch_at averqge location; compared wit~ 29~45 cents for the 1950-crop.
Cotton exports during the 9 months, August through April this season, totaled nearly J.,4 million bales and are expected to reach L.2 million bales .for the
entire season, compared vd. th 5. 8 million oales exported in the 1949-50 season.
G H. A I N S
Prices of most · grains on the Fort · ,.'forth Grain and Cotton Exchange declined further during the past week. HarJest hit was wheat, which fell 5 cents per
bushel. No . . 1 hard wheat sold on Tuesday of this week at $2.57-3/4 per bushel, or
13 cents under the late April peak. Despite the dark outlook for winter wheat production in the Southwest this season, 'llfheat pr·ices are lower than at any time since
No. 2 white oats sold in Fort Worth Tuesday for a top price of $1.11-3/4
pa-- bus.~el, or 4 cents under a week ago and 11 cents under the February peak.
1Jo. 2 yellow corn, at $11> 94-1/2, was off 4 cents for the vreek and 6 cents
under the late April level:- No~ 2 white corn experienced no net change during the
past 1yeek, holding at ,:P2 .12-1/2 per busher:-.
Sorghum grain prices, after rising to $2.71 per cwto early in May following the announcementof higher price support this year, have declined 16 cents and
are lower than at any time in more than a month.
'Vheat futures on the Chicago Exchange have declined sharply since late
April. · July 19-Sr futures closed Tuesday, May 22, at $2 ~ 38-7/8, compared with ~ 2 • .:'23/8 about a month ago" September 1951 futures at ~ 2.41-1/2 we-re off 13 cents.
Rice markets in Texas and Louisiana have weakened some·rhat, after l:olding
steacly for several vreeks. Although Houston markets continue to yuote No. 1 Patna
and Blue Bonnet at $lle75 per 100 pounds, discounts of 25 to 50 cents are reported
to have been of19red last week.
The bulk of the southern rice acreage has be(n planted. The crop is making generalJy favorable progress in most sections.

Number 7b

Y/ednesday, May 23, 1951
Page 2

Livestock prices on the Fort Worth market strengthened slightly last week
and early this week, after having dropped sharply following announcement of price
controls on beef cattle. Slaughter cattle prices have regained virtually all the
loss, although feeder a n d stocker steers are still S3.00 below the late April level.
Tuesday's top prices for slaughter cattle; steers and calves $37.00$
heifers $36.00; and cows $29*00. Feeder and stocker steers brought $38.00 per cwt.
Hogs sold this week for a top price of $21,30 per cwt., which is the high­
est level reached in a month.
Fort Worth lamb prices: spring slaughter lambs $ 3)4,00, and shorn feeder
lambs $28,00 per cwt.
Goats on the San Antonio market sold steady last week, with some lots 30
cents higher.
Goats sold up to $17.00 per cwt,, while the top price for kids was
$7,00 each.




Prices of poultry and eggs in the Dallas wholesale market have remained
virtually unchanged for the past week, except for a decline of 1 to 2 cents per doz­
en for ungraded eggs.
During the week ended May 12 a total of 1,233*000 broiler chicks were
placed on Texas farms, bringing the total for the year up to about 22 million, com­
pared with 11+ million to the same week last year.
Broiler prices in Texas during the week ended May 12 averaged 26.9 cents
per pound, compared with 28.6 cents in the previous week and 30.7 cents a year ago.
Commercial hatchery production in Texas during April totaled 12.14 million
chicks, or 3 percent more than in the same month last year, according to a BAE re­
port this week. Total production for the first four months of 1931 was 3 percent
above the same period in 1930.
Farmers' net income in 1951, says the BAE, will be 30 percent or more
above the $13 billion they realized last year. In fact, the dollar increase from
1930 to 1931 is likely to be the largest ever recorded in a single year— probably
sufficient to wipe out all the declines that have occurred during the past three
years. If an increase of this size actually takes place, it will raise farmers' net
income back to around the level of $17.8 billion of 191+7.
In contrast, nonfarm personal income, which has set a new record high in
every year since 191+0, will reach another all-time peak in 1931, at least 23 percent
above its 191+7 level.
Farm production expenses are rising along with gross farm income; but the
percentage increase from 1930 to 1931 is expected to be almost twice as large for
gross income as for expenses.
Cash receipts from farm marketings, the principal element of farmers'
gross income, may be up about one-fourth from the 1930 total of $27.9 billion.
Cash receipts will be up considerably for both crops and livestock with
prospects for livestock on the whole somewhat more favorable than for crops.
The total volume of crop marketings in 1931 may be up 10 percent; sales of
livestock and livestock products will show a smaller increase.
W. M. Pritchett
Agricultural Economist