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Numbor·--m.·~- -··

l.~ednesriay, August

8, 1951

Federal Reserve Bank of Dallas
The USDA announced today its est:i.mate of the cotton crop as of August 1,
placing the figure at 17~266,ooo bales, conpared with J.0,012,000b:1les harvested-in
19)0 anJ 16,128,000 baleS-produced ir1lj49. The of;icial estimate of the cotton
crop is in line with most private estimates made during recent vreeks.
The Texas cotton crop is estimated. at ~; ,000_1 000 bales, compared with
2,946,000 halesharvesteain 1950 a;1d the record-c:copof6,0Lio,ooo tales pro.:iuced
in 1949. The cotton crop in other l)jstrict states: Arizona, 820,000 bales, up
73 percent; Louisiana, 875,000 bales, up 105 percent; New Me:cico, J00_,000 bales,
up 60 percent; and---oklahoma, 680;, 000 bales, up 181 percent-.- Spot cotton prices fell this week to a new low for the year. On Tuesday,
August 7, Middling I)(Ib:inch cotton in the 10 designated markets averaged 35o08
cents per pound, vs. 36c21 cents a we~k earlier and 44 ..)7 cents a month ago<>
The world cotton crop for 19~1-52 is estimated by the International Cotton
Advisory Committee-at J5lriill:l.on bales, or 7.5 million bales more than in the previous year and probably 2 million bales. mol'e than will be consumed during the 195152 cotton year.
The high temperatures and lack of rainfall in the District d1ring· the past
week have been unfavoraule for cotton~ VirtuaJly all areas in the District, except
the irrigated sections, are in need of rain, although the early crops in the southern
part of Texas are too far advanced to be benefited by rain.

The USDA anno\.l!lced last wee~ tho . price support rate for 1951-crop rice at
a national averat;e of ct~'.;.oo per l'lllndreJweigm~compareawl111C4.56- per hundrea:=weight for 19)0-crop rice. Prices will be supported t~1rough loans to producers and
by purchase agreements, available from time of harvest through January 31, 1952.
Cash grain prices on tl1e Fort vrorth Grain and Cotton Exchange made on!y
minor thc3p~st week. Tuesday's top quotations: No. 1 hard theat,
$2.59; No., 2 white oats> ~1.01-3/4; No,, 2 Texas yello·.~J" corn, ~~2.00; No. 2 Te:;~as
white corn, ~2020 per bushel; and No. 2 y,:.;Jlow milo:, J2r53 per cFt~
u. s. farmers · placed 54 millicn tushels of 1950-crop cor~ unde~ price
support through June 30, 1951, compared with 385 million bushel::; from t1ie 1949
crop. Iowa, Nebraska, and Illinois farmers accOLmted for L~2 million of 'the .54
million bushels placed under support.
South0rn riGe markets continued seasonally quiet durinf; the last week in
July according tio-thc-.Arnerican Rice Grovrers Cooperative Association. Eost Texas
and Louisiana mills ha7e completed their 1950-crop operations and have closed .for
repairs. At Houston, Rexoro and Blue Bonnet continued to be quoted at about . 11. 25
to $1L50 and. ac $10.25 to $10.)0 per 100 pounds.
Wheat supplies in prospect for 1951-)2 are sufficient to Meet anticipated
domestic anu export requirements -vd thout significantly reducing the size of the
carry-over, says the USDA. The total supply, estimated at l,50S million bushels,
has been exceeded in only three previous years.
As ·v·heat prices have been fluctuating at about the support level, and
often belo r support, during the rast several mon-~hs, it is expecteJ that consi\.ierable viheat fro1u the 1951 crop ~ill go under the government loan procram.

_V!ednesday, August 8, 1951


The 1951 u. s~ lamb crop totalsld,761,doo head, or about 1 percent more
than in 1950, according to BAJfestin ates. This is the first tirne since 1941 that
tl e lamb crop has shown an increase over· the previous year. Hov.rever, considerable
irnpo1'ta:1ce :i.s being attached to the fact that in the 13 western states (11 Western
States, South Dakota, and Texas) the lamb crop is down slightly, while in the
Native States it is up ) percent. Texas, the loading sheep state, has a 16 percent
smaller lamb crop than last year. Dry 1veather conditions adversely affected the
lamb crop in Texas, and the lamb cr·op percentage (number of lambs saved per 100 ewes
one y-ea::: old 0r--0Ver on lranuo.ry 1) iell to 64, compared with 89.1 for the U4 s .
The Texas larnb crop is estil lated 3.t 2, 8.3.5, 000 head, compared with
3 ,l.125 ,OOO last year. I~ew"""Feiico reports 741,000 head, off h,OOO; Arit.;ona has
233,000 lambs, doi:m 18,000.
Livestock prices on the Fort Worth ma~ket have made few changes in recent
days. However, hogsare quoted at a top price of <~23. 50 - ;)O cents over a week ago
and the highest level rcp:Jrted since February. Spring lambs are selling generally
at a top price of ~J0.00 per cwt., although occasio~al lots reach ~31*00.
Commet' slaughter of cattJ.e in T'ex2s during the first half of the y·ear
tok1.le<l 33 o million -poun.ds, live weight, vs. 3 71 million po'.mds in the same period
in 1950. Slaughter of calves totaled 110 million pounds, vs. lh9 million pounds
last year. Hog·slaugnterreached 226 million pounds, vs. 189 million in the like
·period in 1950, while slaughter of sheep and lambs fell to less than 18 million
pounds, vs. 30 million a year abo• - - - --- - -


0 1

The PMA reports that there was a slightly better tone in the Boston Wool
Market last week tnan has been not~d in several previous weeks, althongh- p.riceSweresori . ewhat lower than recent nominal quotations.
Dealers estimated the price of good 12-rnonths Texas wool from ~~2 .JO to
$2.40 per po1md, clean basis, delivered to Boston, whi.le average 12-months wool was
estimated to cost from $2. 20 to $2,,JO per pound. However, tra·jing in Texas wools
remains dormant.
Average weekly consumption of apparel wools, shorn and pilled on a scoured
basis, for April 19~1, the latestmontn forvffiichdata are available, was 8,557 ,ooo
pounds, vs. a weekly avera~e of 6,486,000 pomds in .Jarch and 8,Jl.i.6,000 pounds in
April 1950.

ti on of dairy products . . er capita, milk equj_va}.ent basis, •rill be
a li·Ltle less1,his----:-Cartilar1In--n:?O~ccor iLg to BAE forec2sts. Butter io
accou ting for m.Jst of the de1.;line and ma~r fall· below 10 pounds per person for the
first tirne on record. C nnsum_ tion of mart...arine, on t e other and, is running
above last . year.,
Consumption of fluid milk an c:tean appar .ntly is runnirn::~ slightly
hi hvr than a yeqr ago, r epo""'tu-th' BAE. Thie is in:licated both by the reports
from major fluid mi.Lk mar1.:et0 and by the ql4antities of .nilk available in excess of used to p .. o lee ma 'or manufactured lairy prod·1cts.
Con.:rnmption of
slightl . .more milk t 1an a year ago, even ri th ., 5 pr.;rcent hi ,her retail p.rices,
in icates . . v ub;:;itantial in cons er deLanr for these products.

• Pritchett
Agricultural Economist