TDA Weekly Market Recap, Mar. 4, 2014

Posted 10 years 269 days ago by

AUSTIN – (March 3, 2014) For the week ending March 1, 2014, Texas feeder cattle auctions reported prices mostly steady to $7 higher per hundredweight (cwt), with a few as much as $10 higher. However, a few lower prices also were noted early in the week. Texas direct feeder cattle prices were mostly steady. Fed cattle cash prices were $5.47 higher to a new record-high $150.16 per cwt. Wholesale beef values also were higher. Prices across the cattle sector remain strong as tight supplies and strong demand continue to support the market. Weekly beef export sales totaled 11,700 metric tons (MT), up 19 percent from the previous week and five percent from the prior four-week average. Export shipments were up three percent from a week earlier, but down one percent from the average. Japan, South Korea and Hong Kong were the leading destinations for U.S. beef.

Cotton cash prices were lower due to weak export data, ongoing concerns about burdensome world supplies and uncertainty about how China will handle its large cotton reserves. There were rumors that China will lower the price on the cotton it is selling out of its reserves and maybe offer its domestic yarn mills a deal that would give them one ton of import quota for every four tons of cotton they buy from reserves. With China holding 59 percent of the world’s cotton stocks, prices tend to fall on any suggestion that those reserves will be unleashed on the market. Cotton export sales totaled only 27,100 bales, a marketing year low, down 62 percent from the previous week and 87 percent below the prior four-week average. Export shipments were down 15 percent from a week earlier and 16 percent from the average. The top destinations were Turkey, China and Vietnam.

Wheat prices were lower for the week. However, the market showed some strength late as another strong cold front renewed concerns about freeze damage. Turmoil in Ukraine increased the potential for U.S. exports and transportation problems continued in Canada. Those concerns were more than offset by weak export sales, a large export cancellation by Egypt and more-than-ample world supplies. Wheat export sales of 365,100 MT were on the lower end of expectations, down 14 percent from the previous week and 39 percent from the prior four-week average. The Philippines, Thailand and Brazil were the top buyers. Export shipments were up 97 percent from a week earlier and 54 percent above the average.

Corn and grain sorghum prices were higher, mostly because of spill-over support from other grains and soybeans, and the potential for increased exports due to the situation in Ukraine. Corn export sales for the week totaled 840,800 MT, which were at the high end of pre-report expectations. Export sales were up 22 percent from the previous week, but down 39 percent from the prior four-week average. The leading buyers were Japan, Columbia and Peru. Shipments were up 15 percent from a week earlier, but down one percent from the average.

Most of the state recorded precipitation last week, but totals of one-half inch or more were limited to parts of South Texas and most of the area east of a line from Victoria to Austin to Paris. Last week’s U.S. Drought Monitor showed another decline in conditions in Texas, with the area of the state rated as abnormally dry or in drought up five percentage points to 93 percent, 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 percent of the contiguous states were reported in some degree of abnormal dryness or drought, up one point from a week ago. Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

		Week Ending	Previous	Previous
Texas Cash Markets:		March 1, 2014	Week	Year

Feeder Steers	$/cwt	166.03	166.33	138.43
Fed Cattle	$/cwt	150.16	144.69	127.94
Slaughter Lambs	$/cwt	192.00	198.00	164.00
Slaughter Goats	$/cwt	240.00	246.00	246.00
Cotton	¢/lb.	82.00	83.00	79.00
Grain Sorghum	$/cwt	8.04	7.96	12.38
Wheat	$/bu.	6.76	6.87	7.34
Corn	$/bu.	5.02	4.97	7.62
Oranges	$/carton	n/a	11.65	11.65
Grapefruit	$/carton	13.25	13.65	15.95
Cabbage	$/50 lbs.	9.20	10.00	6.50

Futures Markets:

Feeder Cattle	$/cwt	171.70	170.70	141.55
Fed Cattle	$/cwt	151.95	144.55	129.95
Cotton	¢/lb.	86.59	87.09	83.68
Wheat	$/bu.	6.77	6.83	7.56
Corn	$/bu.	4.58	4.53	7.24
Lumber	$/MBF	350.00	363.60	395.40

All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.” MBF = thousand board feet. For additional information, contact TDA at (800) 835-5832 or visit our website, www.TexasAgriculture.gov.