Mar 28 2014

TDA Daily Agriculture Market Summary 3/28/14 Posted 10 years 29 days ago by

• Feeder cattle steady to $4 higher; futures higher.
• Fed cattle cash trade steady; futures higher; beef prices lower.
• Cotton cash prices unchanged; futures higher.
• Grains higher; soybeans lower.
•  Crude oil and natural gas higher.
• Stock markets modestly lower.

 

Texas auctions reported feeder cattle prices steady to $4 higher per cwt, though several of the usual auctions did not post sale results this week. Feeder cattle future were higher. The fed cattle cash trade was quiet yesterday with prices steady for the week at $150 per cwt. Wholesale beef values were lower for both Choice and Select-grade offerings. Estimated cattle slaughter week-to-date is running higher than both last week and last year. Fed cattle futures were higher. Weekly beef export sales of 13,300 metric tons (MT) were down 18 percent from the previous week and 6 percent from the prior four-week average.  Primary buyers were Japan, Mexico and South Korea. Shipments of 11,600 MT were down 20 percent from the previous week and 9 percent from the prior four-week average.  The primary destinations were Japan, Hong Kong and Mexico.

Hog futures were sharply higher yesterday and cash prices continue to rise as traders remain very concerned about the supply situation. Today’s USDA hog inventory report should provide some insight into how badly the porcine epidemic diarrhea virus (PEDv) has impacted pig production. The disease is 100% fatal to baby pigs under three weeks old and reports have indicated that losses could be quite large, with more to come. Wire service reports said, “The concern about gaining access to hogs over the next couple of months continues to be a major worry for the entire industry.”

Cotton cash prices were unchanged, but cotton futures were higher. Export data were mildly supportive. Both sales and shipments were down from the prior four week average, but both were well above the weekly average needed to meet USDA projections for the marketing year. In addition, export commitments are running ahead of last year’s pace. Cotton export sales of 66,300 bales were up 31 percent from the previous week, but down 11 percent from the prior four-week average.  The top buyers were China, South Korea and Turkey. Shipment of 259,100 RB were down 21 percent from the previous week and 16 percent from the prior four-week average.  The primary destinations were China, Turkey and Vietnam.

Wheat prices were higher yesterday, mostly due to dry conditions on the U.S. Plains. In addition, the Ukraine Ag Ministry said the country’s spring wheat acreage will be reduced by “high fuel and fertilizer costs, along with a lack of financing.” Russia said its crop was progressing ahead of normal. Export data were mixed. Wheat export sales totaled 400,500 MT, unchanged from the previous week, but down 11 percent from the prior four-week average.  The top buyers were Japan, the Philippines and Nigeria. Shipments of 530,400 MT were up 21 percent from the previous week and 2 percent from the prior four-week average.  The primary destinations were Nigeria, South Korea and the Philippines.

Corn and grain sorghum prices were higher “after a phenomenal (corn) export sales report that was more than twice what the trade expected.” Corn export sales of 1,408,300 MT were up 89 percent from the previous week and 49 percent from the prior four-week average. The primary buyers were Egypt, Mexico and Colombia. Shipments totaled 1,230,000 MT, up 33 percent from the previous week and 29 percent from the prior four-week average.  The primary destinations were Mexico, Japan and Colombia.

Stock markets were modestly lower yesterday after a set of somewhat bearish economic reports. On the plus side, the Labor Department reported that new unemployment claims declined last week, compared to expectations for an increase. On the down side, the Commerce Department said that the economy grew by an annualized rate of 2.6% during the fourth quarter of 2013, up from the original estimate of 2.4%, but lower than pre-report expectations. Also, the National Association of Realtors reported that contracts to buy previously-owned homes fell more than expected during February to their lowest level since October 2011.

Disclaimer: The information compiled in the Daily Market Summary is obtained from a variety of sources, including those available on the Internet, that are believed to be reliable and accurate, but are in no way guaranteed. This information is intended to provide only a summary of market trends and a daily snapshot of agricultural markets and economic indicators. It should not be relied upon as a sole source of market information. Commentary is the author’s alone and does not in any way convey official TDA policies.