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AGRICULTURAL NEWS OF THE WEE__K_~----------~-·_·.. Wednesd~J", Augus~ 1, 1951
Number .83
Federal Reserve Bank of Dallas
The PM.A announced last week that the average loan rate for Middling
7/8-inch upland cotton, ·gross weight, produced in 1951 will be 30~46 cents per
pound, which~ W}Jercent of the parity price of cotton as of August 1, 1951.
(The August 1 parity price, which is 33o85 ·cents per pound, is computed on the
basis of July 15 prices included in the parity index~) .Last year tho average
loan rate for Middling 7/8-inch cotton, rr,ross weight, was 27ci90 cents per pound.
The average support price for Middling l::;/16-inch cotton will be 125
points ( 1. 25 cents per-pouna) aGOve the averag(J -rate :ror Mrd< ~7 /8-inch cotton'
or 31071. c~nts per pound, gross weight.
. · Spot cotton prices have declined to the lowest levels in more than a year .
On Tuesday, J1ily · 31;-~.~ldaling 15/16-inch cotton averaged 36.21 cents per pound in
the 10 designated spot markets, compared with h5l)25 cents a month earlier and 38.64
cents a year ago. The continued decline in the past week is attributed to a host
of factors, including the good weather over most of the Cotton Belt, unfavorable
cotton goods reports, and the apparent slow progress being made toward an_armist:ice
in Korea.
New-crop cotton futures are holding relatively steady at levels considerably below current spot quotations. Tuesday's closing price for October futures on
the New Orleans Exchange was 34.64 cents, vs. 34?79 cents a week earlier and 34.61
cents-2 weeks ago, Tuesday's closing cash price for Middling 15/16-inch cotton on
the New Orleans market was 35.35 cents per.pound.
The carry-over of cotton in the U. s. today, August 1, nt the beginning
of the new "cotton season" is close to 2 million bales, according to a PMA report.
Stocks in mills a1e estimated at less than 1-1/4 million bales, and cotton in public
SfOMgeanctother locations is .about J/h million baleso A year ago the Plill carryover totaled LJ ni.illioh and stocks in public storage and 11 elsewhere 11 were over
5-1/2 million· bales.
· Extremely high temperatures and drought continue to lower cotton prospectr
in the southern two-thirds of Texas, accoraing to the BAE. The crop, however, is
blooming and fruiting rapidly across the northern part of the state and in the High
Plains. Irrigated cotton in extreme west Texas is making satisfactory progress for
the most part, but shortage of irrigation water is affecting some acreage. Losses
from insects have· been relatively light thus far this season.
Price t~ends on the Fort Worth Grain and Cotton Exchange show wheat up
3 cents, oats off 3 cents, and vrhi te corn up 5 cents per busl el; and grain sorghums
up 2 cents per cwt, Tuesday's top quotations: No. 1 hard wheat, $2.56-1/4;
No. 2 white oats, 99-1./l+ cents; No~ 2 yellow corn, $2.02-1/2; and No. 2 white corn,
$2.J3-l/4 per bushel; and No .. 2 .yellow milo, $2.52 per cwt.
-As compared with September futures quotations, cash wheat prices on the
Chicago market last week were about 2 cents lower, cash oats v-rere 3 to 4 cents
higher, and cash corn was 3 to 6 cents higher.
Stocks of wheat in all off-farm positions in Texas on July 1 totaled
33.6 million bushels, vs. 40~7 million a year earlier, according to the BAE. Tota1
stocks, including those on farms, were 34.2 million bushels, vs. 42.7 million on
July 1, 19)0.
Off-farm stocks of feed.grains in Texas on July 1 included 954,000 bushel
Of corn, VS. 613,000 a year earlier; 410,000 bushels of old oats, VS. 779,000

· . . Wednesday,. August 1 1 1951
·---------------------- •
bushels in 19.50; and 4lo7 million bushels of sorghum grain, vs. 46.9 million bushels
a year agoo
A September program for commercial and Government exports of 107 million
long .tons (abo11t 64~.5 million bushels) of bulk wheat and coarse grains has been
announced by the USDA. The Department also programmed a minimwn of slightly over
1 million ~ong tons (about 37.6 million bushels) of wheat for October .
. Southern rice markets generalJy are inactive 3 with buyers awaHing newcrop offerings, accordingto the American Rice Growers Cooperative Association.
Livestock prices on the- Fort Wortnmarket made few noteworthy changes
during the past week-_;--e.Xc"ept for a decline of about $1.00 for calves and lambs .
Top quotations on Tuesday of this week: hogs $23oOO, slaughter s~eers $J6.00,
slaughter .cows $28,00; slaughter calves $34.00, feeder and stocker steers $35~00,
feeder and stocker steer calves $38.oo, and spring lambs $30.00 per cwt,,
Goat prices on the San Antonio market last week were strong to 50 cents
higher. Medium ~nd Good shorn Angoras brought $15.00; kids moved at $6~50 to $7oSO,
with a few at ~)8.oo each.
Marketings of cattle, calves, and sheep on the Fort Worth mar·ket during
the past 2 weeks have been heavier than in most other recent weeks and lare;er than
in comparable weeks a year ago,, Lack of sufficient grazing in some of the drier
areas of the Southwest· is credited with the increased marketings. In the Nation's
leading 12 markets, receipts of calves and hogs last week were above a year ago;
receipts of cattle and sheep were lower.
Prices on the Dallas wholesale poultry markets have held steady for the
past week, except for a decline of 2 cents per pound for medium weight hens.
Tuesday's quotations: hens weighing 4 pounds or over, 22 cents; 3- to 4-pound hens,
16 cents; Arkansas fryers on farms, 30 cents; local fryers, 27 cents; and baby beef
turkey hens, 35 cents per pound. No. 1 in.fertile eggs are quoted at l.i.5 cents per
Broiler chick placements on Texas farms totaled slightly over 1 million
during thevroek ended July 21, according to data assembled by the BAE. This was 7
percent below the previous week and the smallest number placed in any week since
February 3. However, placements for the year to date totaled 31-l. •.5 million, vs.
21 million for the same period last yearo
Broiler prices in Texas averaged 30.,4 cents per pound during the week
ended July 21, compared with J0.2 cents the previous week and 32.0 cents a year ago.

Prices received by u. s. farmers in mid-July averaged lower for tho fifth
consecutive month and, at an index of 294, were 2.3 percent below the June 15 level
but still 11. 8 pr3rcent above a year ago..,
Dmmturns in farm wage rates (after seasonal adjustment) and in prtces
paid by farmers for commodities used in production were not of sufficient importance
to lower the July Parity Index be lo v the revised June index of 282, which is 10
percent higher than a year ago.
W. 1 • Pritchett
Agricultural Economist