TDA Weekly Market Recap, April 1, 2014

Posted 10 years 241 days ago by

AUSTIN – (March 31, 2014) For the week ending March 29, 2014, feeder cattle prices reported by Texas auctions were mostly steady to $5 higher per hundredweight (cwt) compared to their previous sale. Some locations were as much as $10 higher, but a few were $3 lower on a portion of their offerings. Texas direct feeder cattle prices were $1 to $5 higher. 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 steady at $150 per cwt. Wholesale beef values were lower. Weekly beef export sales of 13,300 metric tons (MT) were down 18 percent from the previous week and six percent from the prior four-week average. Primary buyers were Japan, Mexico and South Korea. Shipments of 11,600 MT were down 20 percent from the previous week and nine percent from the prior four-week average.

Cotton prices ended a volatile week lower. On the down side, China lowered the base price of the cotton it is selling from its reserves. On a more positive note for prices, USDA reduced its estimates of cotton gins baled for this crop year. Dry conditions on the Texas High Plains and tight domestic supplies also remained supportive. Export data was mildly supportive. Both sales and shipments were down from the prior four week average, but both were well above the weekly average needed to meet USDA projections for the marketing year. Cotton export sales of 66,300 bales were up 31 percent from the previous week, but down 11 percent from the prior four-week average. The top buyers were China, South Korea and Turkey. Shipments of 259,100 bales were down 21 percent from the previous week and 16 percent from the prior four-week average.

Wheat prices were modestly lower in spite of ongoing 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. Export data was mixed. Wheat export sales totaled 400,500 MT, unchanged from the previous week, but down 11 percent from the prior four-week average. The top buyers were Japan, the Philippines and Nigeria. Shipments of 530,400 MT were up 21 percent from the previous week and two percent from the prior four-week average.

Corn and grain sorghum prices were higher in response to strong corn export data. Corn export sales of 1,408,300 MT were much higher than expected, up 89 percent from the previous week and 49 percent from the prior four-week average. The primary buyers were Egypt, Mexico and Colombia. Shipments totaled 1,230,000 MT, up 33 percent from the previous week and 29 percent from the prior four-week average.

Much of the state recorded light precipitation last week, though totals of one-half inch or more were limited to parts of East, South and South-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. However, there was a major expansion of the two worst categories, as the area in extreme drought increased from 13 percent last week to 21 percent this week and areas in exception drought rose from one percent to three percent. Areas rated abnormally dry or in moderate to severe drought declined. Parts of West, South and Southeast Texas remain drought-free. Nationally, 52 percent of the contiguous states were reported in some degree of abnormal dryness or drought, up one percent 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. 29, 2014	Week	Year

Feeder Steers	$/cwt	173.36	172.77	136.99
Fed Cattle	$/cwt	150.01	150.05	126.11
Slaughter Lambs	$/cwt	168.00	188.00	97.50
Slaughter Goats	$/cwt	248.00	247.00	180.00
Cotton	¢/lb.	86.00	87.50	82.50
Grain Sorghum	$/cwt	8.79	8.60	12.10
Wheat	$/bu.	7.55	7.58	6.94
Corn	$/bu.	5.31	5.21	7.43
Grapefruit	$/carton	12.65	13.15	15.60
Cabbage	$/50 lbs.	6.50	7.00	9.75

Futures Markets:

Feeder Cattle	$/cwt	178.35	175.02	135.52
Fed Cattle	$/cwt	146.50	144.00	128.90
Cotton	¢/lb.	93.74	93.31	88.43
Wheat	$/bu.	7.64	7.71	7.27
Corn	$/bu.	4.92	4.79	6.95
Lumber	$/MBF	334.40	335.00	391.20

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 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.