2014

Posted 10 years 274 days ago by

Feeder cattle mostly steady to $3 higher; futures higher.
Fed cattle cash trade $5-$6 higher to record high; futures higher; beef prices higher.
Cotton lower.
Grains lower; soybeans higher.
Crude oil higher; natural gas lower.
Stock markets modestly higher.

Texas auctions reported feeder cattle prices mostly steady to $3 higher, with one location $3 lower on a few lighter-weight offerings and one $4-$8 higher on feeder heifers. Feeder cattle futures were higher. The Texas fed cattle trade was $5-$6 higher yesterday to a new record high $150 per cwt as packers chased a limited supply of uncommitted cattle. Last week, cash fed cattle averaged about $144.50. Estimated daily cattle slaughter continues to run well above both last week and year-ago levels. Wholesale boxed beef values were higher. Fed cattle futures were higher.

Cotton cash prices and futures were lower again yesterday in the absence of any fresh news to push the market higher. Certificated stocks increased by about 1,000 bales. Traders were said to be looking ahead to this morning’s USDA export data. Sales have been slow over the past several weeks, but cumulative sales for the marketing year remain above commitments at this time last year.

Corn and grain sorghum prices were unchanged to 3 cents lower mostly due to speculative and fund selling of the underlying futures contract. Ample current supplies and projections for another record-large crop in 2014 continue to weigh on the market. One wire service report talked about the lack of farmer corn sales because of their disappointment with current prices. That has helped support prices, but cut into revenues at the major trading firms.

Wheat prices were 11-12 cents lower, also mostly due to speculative and fund selling on the futures market. Wheat is also burdened by large world supplies, but concerns about winter freeze damage and turmoil in competing exporter Ukraine have limited losses.

Stock markets ended the day modestly higher yesterday. Economic and corporate news was mostly bullish. The Commerce Department reported that sales of single family homes rose more than expected during January to their highest level since July 2008. Target posted better than expected quarterly results in spite of the company’s credit card data breach. Investment bank Morgan Stanley agreed to a $275 million fine for its role in the mortgage bond crisis.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed another decline in conditions in Texas, with the area of the state rated as abnormally dry or in drought up 5 percentage points to 93%, the highest reading since October 2013. Percentages increased for all drought categories, with moderate and severe drought up the most. The drought-free areas in East Texas have almost disappeared and parts of South and West Texas remained drought-free. Nationally, 54% of the contiguous states were reported in some degree of abnormal dryness or drought, up 1 point from a week ago.

In a draft report released yesterday, the EPA said that agriculture is the source of 8.1% of the nation’s greenhouse gas emissions. The report attributed 25% of methane emissions to animal agriculture, mainly cattle production. Click here for the full report.

USDA yesterday extended the comment period for a proposed rule allowing the importation of beef from 14 Brazilian states. Comments are now due on April 22. Click here for the news article and a link to the proposed rule.

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.