View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

~A_m~rr~c_U_L~T~~~A_L_N_E_m_s~O_i~T_H_E_~_~_E_·K~·~~~~~~-~-~-~·-~-~·~·-w~~ne~rt~; Se~temb~r 26, 1951

Number 91

Federal Reserve Bank of Dallas·
Spot cotton prices. have made.- considerable recovery from the low level
reached aboutthe firs't of ·s eptembero On Tuesday, September 25;, Middling
15/16-inch cotton in .the 10 designated spot markets averaged 36.,19 cents per
pound, compared with 34r79 cents a week earlier and 34~10 cents 3 weeks agoo
Farmers ar8 reported withholding a large portion of their cotton froln the market .
in the expectation that this action will ca.use a rise in cotton prices·CI
Cotton exports under the export allocation system for the 1950·-51 season
(August - July) was-4:1 .million bales) or 29 percent less i:,han in the previous
seas.on\) Cotton exported to Japan accounted for 21 percent of the total, followed
by Italy with 13 percent, France and Germany each· received about 11 percent, and
Canada, 10 percent.
Weather condi±ons over the Eleventh Federal Reserve District for the ·
past week generally have been favorable for the harvesting of cotton. The crop
in central and southcentral Texas is from 70 to 80 percent harvested while harvest
.in north and east Texas, is we J 1 past · the .~o percent · mark in rriost ·places o
Texas cotton ginned through September 15 ·averaged· lower in grade and
· .over a thirty-second shorter -in staple length than that ginned for the same period
last year, accordin~ to the PW.IA. The grade index through September 15 this year
was 98o2 (Middling iriiite = 100) compared to 100.0 last yearQ
Ginnings in Texas through September 15 totaied 1,458,000 bales, compared
wi tQ. 790·,000 bales last year, according to the Bureau of the Censuse

C0 T T0 NS E E D
lot prices received by Texas farmers for cottonseed during the
week ended September-19 averaged $66~70 per ton,compared to $66.50 the previous
week and $82~50 for the same period last yearo
The output of cottonseed this year, based on the expected production
of cotton lint-;-is estim~ted by ~he BAE P~ about ?,000,000 tons compa~ed with
4.1 million tons in 19500
Domestic disappearance "of mar~arine in 1950 is likely to reach or exceed
i,000,000,000 pounds for the first time-.-consumption of margarine per per.son may
be over 6.5 pounds, 001npared·with 6.1 pounds in 1950 and 2.7 pounds in 1937·~41.
Butter .consumption in 1951, on the· other hand, may drop below the previous record
low of. lOoO pounds in. 1948.

Prices of most grains on the Fo~t Worth. grain market strengthened last
week amidst reports that 1951 production of wheat· and corn may .fall below earlier
forecasts. On Tuesday, September 25, No. 1 hard wJ:eat sold for· a top price of
C2o62 per bushel, or 2-1/2 cents above a week earlier. No. 2 rhite oats reached
$1. 09 per bushel this week for a net gain of 4 cents as compa-red with a we~k
No. 2 yellor corn c:t $2.02-1/2 per bushel was up about 3 cents, while
No. 2 whi tecorn at ~f2o 26-3/4 per bushel was up 4-1/2 cents.
Sorgl"n~m arain brought ....,. 2 o 61 pGr cwt. for a gain of 1 cent.,
Thu .Atl"l-::r)_ca11 -Ric Growers Cooperative As~ociation reports th~t there are
signs beginning to show up at different places vvhich indicate th~t the sharp dncline
in rice prices may be reach..:. ..1g botto:l and t~ at a more st· ble ilarket m y e xp ct d.
This is particula.rly true 01 the m~dium t:>rain varieties which have Jhovn some



Wednesday, September 26, 1951
Page 2

Number 91

slight price advanceso One strengthening factor in th( rice picture is the reported intention of the CCC to purchase 200,000 bags of rice for ECA and to make
additional purchases in each month through December.
R,ice growers are not selling much rice, particularly while prices are
materially below loan valueso The Secretary of Agriculture has urged them to make
maximum use of the price support E!:ogram so as to help stabilize the market for
this commodity.
Around Houston this week, No. 2 Blue Bonnet of good milling quality
brought $4,10 to $4.hO per 100 pounds. The same quality and grade of Texas Patna
went at $4.58 to $4073~
Price support for 1951-crop rice has been broadened by the USDA so that
rice showing ahead yield of less than 25 pounds per 100 pounds of rough rice will
be eligible for support at the rate for broken rice., This action has been taken
because an unusually large proportion of the 1951 rice crop will not meet the
normal eligibility requirements,
. Harvesting of peanuts in Texa?made little progress last week as growers
were waiting to see if the rains that fell the previous week .would benefit their
crops by increasi~g the yieldsq The aver~ge yield per acre is very low, amounting
to only 400 pounds compared with 660 pounds in 1950~
The movement of peanuts to market in Texas and Oklahoma thus far this
season has been relatively light~ Demand for the small supplies is good, Old
crop Spanish No., 1 sold last week at 18 cents to 18·-l/4 cents (shelled, f. o. b~
shipping point, per pound) compared with 18-3/4 cents t0 19-1/14 cents for new
crop offerings,,
Tho Texas peanut crop is estimated at 186,000,000 pounds vs. 323,000,000
pounds a year ago. The Oklahoma crop estimate is placed at 126,000,000 pounds,
or about the same as the 1950 crop,,

L I V E S T 0 C. K
Prices of some classes-Of liv-:estock have strengthened during the past
week, as the demand for slaughter and stocker animals continued strong, according
to· PMA reportso
On Tuesday, September 25, Good & Choice fed steers and yearlings and
heifers sold in Fort forth for '$32;)00-36000 , while beef cows cashed at $2200028.00, and Medium & Good stocker & feeder steers and yearlings sold for $28 .0034.00.. Good & Choice slaughter calves cleared at $30~00-34.-50 , while Good &
Choice stocker calves cashed at $33 .00-39.00o
Hogs held steady on the Fort Worth market, with Choice 180·-280 pound
· weights bringing $21.00 and $21.250
Prices of available lambs were steady. Good & Choice wooled,slaughter
spring lambs brought $)1,50 , Spring feeder lambs moved out at from ~28.00-30 .00.
Goat prices on the San Antonio market showed considerable fluctuation
the past weeiebut made a net advance of 25 to 50 cents.
W. M. Pritchett
Agricultural Economist