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Jan
09
2015

Texas Daily Ag Market Summary 1/9/15

Posted 9 years 80 days ago by

  • ·         Feeder cattle steady to $5 higher; futures slightly lower.
  • ·         Fed cattle cash trade unchanged; formula trades higher; futures sharply lower; beef prices higher.
  • ·         Cotton higher.
  • ·         Grains and soybeans lower.
  • ·         Crude oil higher; natural gas higher.
  • ·         Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $5 higher. Feeder cattle futures finished slightly lower after a day of trading gains. Triple digits losses in the fed cattle futures trade dragged down feeder cattle momentum. The Texas fed cattle cash trade was unchanged yesterday with prices at $170 per cwt. Wholesale boxed beef values were higher again on Thursday. Estimated cattle harvest so far the week totaled 430,000 head, up 110,000 from the previous week’s holiday-shortened total, but down 23,000 from a year ago. Year-to-date harvest is down 5%. Fed cattle futures were sharply lower despite gains in boxed beef prices and consistent cash prices. Net export sales beginning Jan. 1 totaled 6,000 metric tons (MT), with Japan, Chile, and Mexico as the top buyers. Export shipments of 7,700 MT went primarily to Japan, Hong Kong, and South Korea. Accumulated exports of 680,200 MT for 2014 were down 2% from last year’s ending total of 695,000 MT.

Cotton cash prices and futures were higher with improved export numbers to draw support from. China continues to be a strong buyer of U.S. cotton. Analysts are discussing possible decreases to the previously forecasted high world ending stocks. USDA will release new numbers on Monday in their monthly WASDE report. Export cotton sales of 149,900 bales were 68% higher than last week, but down 13% from the prior 4-week average with increased purchases for China, Vietnam, and Taiwan. Shipments were at 205,800 bales, a marketing-year higher, was up 21% from last week, and 11% from the average. The primary destinations  were Turkey, China, and Vietnam.

Corn and grain sorghum prices were lower as the weekly export sales report noted a marketing year low for corn. Corn export sales were 387,600 MT for the week, down 57% from the previous week and 63% from the 4-week average. Increases were reported for Mexico, Colombia, and Japan. Export shipments of 510,400 MT went mainly to Colombia, Japan, and Mexico. This week’s shipment was 24% lower than last week and 28% lower than the average.

Wheat prices were lower also due to weak export numbers and the rising value of the dollar. Net export sales for wheat was 151,000 MT, another marketing year low, down 57% from last week and 61% from the prior 4-week average. The Philippines, Iraq, and Japan had increased purchases. However, shipments were 456,000 MT, three times higher than the previous week and 43% higher than the weekly average. The top destinations were the Philippines, Nigeria, and Taiwan.

Stock markets were higher amid expectations that major banks will keep cheap money in the financial markets and investors taking advantage of lower prices that opened up 2015. The Dow had its best day since December 18.


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.







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