TDA Weekly Market Recap, Mar. 24, 2014

Posted 10 years 249 days ago by

AUSTIN – (March 24, 2014) For the week ending March 22, 2014, feeder cattle prices reported by Texas auctions ranged from $8 lower to $9 higher per hundredweight (cwt) compared to their previous sale. Texas direct feeder cattle prices were steady to $1 higher on cattle weighing less than 800 pounds, but lower on heavier-weight offerings. Tight supplies and strong demand continue to support the feeder cattle market, but prices also fluctuate depending on the types and condition of cattle being sold and specific buyer requirements at each particular sale on a particular day. Fed cattle cash prices were $2 higher at a near record-high $150 per cwt. Wholesale prices for Choice-grade beef set a new record high on Tuesday then declined to end the week modestly lower. Beef export sales totaled 16,300 metric tons (MT), down eight percent from the previous week, but up 30 percent from the prior four-week average. Japan, South Korea and Hong Kong were the leading buyers. Export shipments of 14,600 were a high for the marketing year, up 10 percent from the previous week and 21 percent from the average.

Cotton prices were higher due to ongoing concerns about the dry conditions on the Texas High Plains and tight domestic supplies. Higher stock markets and reports of possible crop damage in India due to heavy rains and hail also were supportive. Cotton export data for the week was mixed. Sales totaled 50,800 bales, down 15 percent from the previous week and 36 percent from the prior four-week average. Turkey, China and Vietnam were the leading buyers. On a more positive note, export shipments of 329,000 bales were up 25 percent from a week earlier and seven percent from the average.

Wheat prices for the week were higher amid growing concerns about dry conditions in U.S. winter wheat areas and a decline in crop condition ratings. Tensions in Ukraine remain a factor, but the situation has not resulted in the hoped-for increase in U.S. export sales. Wheat export sales for the week totaled 401,800 MT, down 16 percent from the previous week and 12 percent from the average. Exports of 440,000 MT were down three percent from a week earlier and eight percent from the average.

Corn and grain sorghum prices were lower as large world supplies and the advancing harvest in South America continued to pressure the market. Corn export sales were 745,800 MT, up nine percent from the previous week, but down 20 percent from the prior four-week average. Export shipments totaled 927,100 MT, up two percent from both the previous week and the average.

Little rain fell anywhere in the state last week with totals of one-half inch or more limited to scattered locations in East and Central Texas. Last week’s U.S. Drought Monitor showed overall conditions in Texas near unchanged, with the area of the state rated as abnormally dry or in drought holding steady at 85 percent. Parts of West, South and Southeast Texas remain drought-free. By category, areas rated abnormally dry and in severe drought declined, while areas in moderate and severe drought expanded. Areas rated in exceptional drought were near unchanged. Nationally, 51 percent of the contiguous states were reported in some degree of abnormal dryness or drought, down slightly 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:		Mar. 22, 2014	Week	Year

Feeder Steers	$/cwt	172.77	169.01	133.65
Fed Cattle	$/cwt	150.05	148.03	124.80
Slaughter Lambs	$/cwt	188.00	194.00	129.00
Slaughter Goats	$/cwt	247.00	252.00	190.00
Cotton	¢/lb.	87.50	86.75	81.75
Grain Sorghum	$/cwt	8.60	8.72	12.71
Wheat	$/bu.	7.58	7.47	7.29
Corn	$/bu.	5.21	5.28	7.74
Grapefruit	$/carton	13.15	13.50	15.60
Cabbage	$/50 lbs.	7.00	8.50	7.25

Futures Markets:

Feeder Cattle	$/cwt	175.02	174.60	134.65
Fed Cattle	$/cwt	144.00	145.25	126.20
Cotton	¢/lb.	93.31	92.19	87.29
Wheat	$/bu.	7.71	7.44	7.62
Corn	$/bu.	4.79	4.72	7.26
Lumber	$/MBF	335.00	356.00	381.90

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.

Disclaimer: The information compiled in this 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.