2014

Posted 10 years 299 days ago by

Feeder cattle steady to $12 higher; futures higher.
Fed cattle cash trade inactive; futures higher; beef prices higher.
Cotton cash prices unchanged; futures higher.
Grains and soybeans higher.
Crude oil lower; natural gas higher.
Stock markets higher.

Texas auctions reported feeder cattle prices were mostly steady at several locations and $8-$12 higher at others. Several auctions saw lighter than normal receipts due to another round of cold, icy weather, but one of the sites on the $8-$12 higher end of the scale held a special weaned calf sale that brought in the cattle and the buyers. Feeder cattle futures were higher. The fed cattle cash trade remained inactive across all feeding regions with asking prices still at $154. Week-to-date estimated daily cattle slaughter is running ahead of last week, but lower than a year ago. Wholesale boxed beef values were higher. Fed cattle futures were higher.

Lean hog futures were up their daily trading limit again yesterday to a new record-high $112 per cwt as traders remain concerned about supply issues later in the spring and summer. That’s news, even in cattle country, as higher pork prices help take some of the sting out of higher retail beef prices.

Cotton cash prices were unchanged, but futures were higher yesterday, mostly due to the higher equity markets. The International Cotton Advisory Committee made a minor upward adjustment in its projected 2014/15 world ending stocks. Dry conditions on the Texas Plains and a relatively tight domestic supply continue to support cotton prices. However, as always, the large Chinese stockpile and uncertainty about what they are going to do with it continues to keep a lid on gains.

Grain prices were higher yesterday across the board, mostly due to easing tensions between Ukraine and Russia. The crisis has cooled-down according to news reports, with an all-out war now looking less likely. However, Russian troops continue to arrive in Crimea and the potential still exists for disruptions to agricultural exports from the region. That would, in turn, create additional export opportunities for U.S. grain. The ongoing concerns about freeze damage to winter wheat also continue to support that market. Corn cash prices showed an artificially-large increase again yesterday as the elevators on the low end of the price range either did not report or adjusted their prices higher. Whatever the reason, the price range on corn narrowed to the high end of the previous range, which pulled up the average.

Stock markets closed higher yesterday as “easing tensions in Ukraine fueled a global stock rally.” The S&P 500 hit a new record high and the Nasdaq Composite Index posted its largest daily gain in five months. The “safe haven” assets that gained at the start of the crisis, such as gold and oil, were lower yesterday. European markets saw the largest gains after Russia said it did not intend to send troops further into Ukraine and units participating in combat drills returned to their home bases. Those moves helped reduce the possibility of sanctions against Russia.

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.