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Wednesday, August 15, 1951


Federal Reserve Bank of Dallas
The spot cotton ma.rket thiswee'fr.eached a new low for the year, after
having remainedalmost steady last week. The market apparentJy had disc01mtec
the Government•s cotton production estimate before it was announced 5 as little
noticeable reaction was evident. However, reports this week that gr-owing conditions
have improved over most of the Cotton Belt.s eycept in much of Texas, sent spot
cotton to a lower level. Tuesdayts 10-rr.arl'::et average for Middling 1)/16-inch cotton
was 34.81 cents per pound, compared with 3).08 a wef.:k agoc.
The Secretary of: Agricultitre has announced the establishment of an openend export quota for all types of cotton. Under the open-·end quota, there will be
r10-restrictioi1'0n quantities of cotton that can be sliipped under export licenses~
IJast week rs cotton report for Texas, by di.s tricts, shows the largest percentage increases in produc't'ion over-r95trin-the North High Plains (+ 265%), northcentral Texas (+ 306%), east Texas ( + B6%), the upper coastal areas (+ 74%), and the
Lower Valley (+ 104%). However, only tlie North High Plains, northcentral Texas, the
Trans-Pecos area, and the Lower Valley show increases over 1949,,
Cotton ginned in Texas prior to August 1 averaged lower in grade and
slightly shorter' Instaple length than Jast season, according to the TJSDA's first
quality report for the 1950-51 season. Ginnings of Upland cotton in the State prior
to August 1 totaled 223,881 bales, vs. 283,2).~3 to the same date last 1ear.

G R A I !J S

Grain prices on the Fort 1Jorth Cotton Exchange made few net
chan3es du~ing the pest· week. Top prices on T1.iesday, August 14, and changes from a
week earlier: Noa 1 hard wheat, C2.)9 per bushel, up 1/2 cent; No" 2 white oats,
$1.03-1/4 per bushel, up 1-1/2 cents; No. 2 Texas yellow corn, $2 .. 00 per bushel,
unchan;:~ed; Not' 2 Texas white corn, ~2 .1) per bushel, down 5 cents; and 1.Jo. 2 yellow
milo, $2.53 per cwt., unchanged.
The weekly rice market report of the American Rice Growers Cooperative
Association issued last weel{Stated that quotations on new-crop rice were not yet
well established; however, at the Houston market, new Zeni:tn rice was offered at
around ~~9.00 per 100 pounds. New Century Patna rice was priced around <ttlO. 75 per
100 pounds. Old-crop, long grain rice was generally available at $11~00 to $11~25
per 100 poundso
The Secretary of Agricultlire announced an average support price of
$230.56 per ton for 1951-crop farmers stock peanuts of all types:--This average
support level reflects 88 percent of parity as of the beginning of the marketing
season on August 1. This year's average support price represents an increase of
$14056 per ton over the average support price for 19)0-crop peanuts.
Prices on the Fort Worth livestock market made few noteN"orthy changes
during the past week, except for a decline of '.JO cents for hogs, or to a top price
of $23. 00 per cwt., which offsets the advance by t11e sama amount reported last
Generally rood pasturas and ran,)cs and the big supply of feed Grains in
prospect nromise continue.l e ~zpan. ion in livestock prociuction, says a BAE rel1ort.


NUIDber~- ·-

Wednesday, August 15, 195J



Hog prod:J.cers are likely to carry out their plans for a somewhat larger pig crop
this fall than last, and the cattle population will probably be increased by about
5-1/2 to 6 million head by the end of the yearo
With a seasonal increase in cattle slaughter expected this fall, cattle
prices may show less strength than recently, according to the report. Prices of
SOnie grades may at times drop below ceilings. However, because of the supporting
effect of defense programs on the demand for meat, no material weakness in cattle
prices is expected.
Prices of hogs (barrows and gilts) rose in J1me but were nearly steady in
July, chiefly becauseprice ceilings on pork tended to prevent a further rise.
Ceilings as now established will probably hold barrow and gilt prices comparatively
stable for some time and will probably thus delay the beginning of a seasonal declin
until about October.
WO 0 L
The small flurry of activityOfTweeks ago failed to follow through last
week in the Boston wool market and trading rernained relatively quiet, according to
the PMA. Attention~wocl dealers was directed toward reopening of sales in New
Zealand this week.
The quH.Ltity of wool shorn and to be shorn in the Uo S. this year is
estimated by tne-EAE at-Z2"9";Ill, 000pounds, which is 9 million pounds, or )+ percent,
more than was shorn last year. However, production is dov-m 27 percent from the
1940-~9 average.
The increased wool production this year resulted from a larger number of
sheep shorn and a record heavy weight per fleece. The hlgh fleece-w8l"ehtof1r:°23
pounds compares with B:-11 polinds J.ast year and the 10-year average of B~OO pounds.
Wool production in Texas this year is estimated at 51,943,000 pounds, or
1 .percent beTow--Ehe 1950 cITp·.-The number of sheep shorn is .placed at 7 ,O)J ,OQO
head - up 2 percent; however, lighter fleece weights more than offset this increase.
For the spring clip, 12-month fleeces averaged 7.6 pounds, the lightest in 20 years
of record.
Wool production estimates for other Eleventh Federal Reserve District
states and changes from 19.50: Arizona, 2,402,000 pounds, down 250,000; New Mexico, ·
10,53l,OOO pounds, down 100,000; Oklahoma, 972;000 pounds, up 45,000; and Louisiana,
403 ,.000 pounds, down 2 ,OOO.




Poultry prices on the Dallas wholesale market are holding steady; however,
egg prices advanceCf"Seasonally last week. Current quotations show candled mixed
eggs at 47 cents per dozen, up 6 cents, and No. 1 infertile eggs at .50 cents per
dozen, up 5 cents.
Broiler prices in Texas averaged 32 cents per pound during the week ended
August 4, according to the BAE. This is the first week they have averaged this high
since March and were as low as 26.9 cents in May.
Placement of broiler chicks on Texas farms during the first 7 months of
1951 totaled 36,600,oco, up--()J' percent over a year earliero
Egg production in Texas in the first 7 months of 1951 totaled 1,912
million eggs, or 5 percent less than in the same months of 1950.
W? M, Pritchett
Agricultural Economist