TDA Daily Market Summary 4/15/14

Posted 10 years 227 days ago by

Feeder cattle mostly steady to lower; futures higher.
Fed cattle cash trade inactive; futures higher; Choice beef prices higher; Select lower.
Cotton higher.
Grains and soybeans mostly higher, except rice futures lower.
Crude oil higher; natural gas lower.
Stock markets higher.

Texas auctions reported feeder cattle prices mostly steady, though several noted lower prices on fleshy new-crop calves and offerings over 700 lbs. The Oklahoma City National Stockyards were mostly steady, with prices as much as $1 higher per cwt on better quality cattle ready to go back out on grass. Feeder cattle futures were higher. The fed cattle cash trade was quiet on Monday after declining $1 per cwt last week in very light trade. Initial asking prices this week are reportedly back up to $150 per cwt. The TCFA daily volume and price summary shows 76,800 in formula trades for this week, down from 79,800 a week ago. Wholesale boxed beef values were higher for Choice cuts, but lower for Select-grade offerings. Estimated cattle slaughter for Monday was well below both a week ago and last year. Fed cattle futures were higher.

Cotton cash prices were higher and futures were higher for old-crop contracts, but lower for new-crop. Reports yesterday afternoon noted that a widespread freeze was expected last night on the Texas High Plains. Temperatures were expected to drop to 27 degrees in Lubbock, which had a record high of 92 on Saturday. A couple days of cooler temperatures could hold up the farmers who had intended start planting this week. Unfortunately, the cold front did not bring any significant rain to the High Plains. Wire service reports noted, “A mere 0.47 of an inch of precipitation has been recorded at Lubbock since Jan. 1, compared with a normal of 3.04 inches and 2.27 inches a year ago.” The drop in new-crop futures was generally attributed to news last week that China set its cotton support prices at about double current futures and was encouraging domestic mills to buy from its huge reserves.

Wheat prices were sharply higher after the forecasts for freezing temperatures on the U.S. Plains raised concerns about additional crop damage. Reports noted that traders were also back to watching the situation in Ukraine for any potential increase in U.S. exports. In addition, USDA reported a decline in wheat crop conditions compared to a week ago.

Corn and grain sorghum prices were higher on thoughts that rain and cooler temperatures in the Midwest could cause planting delays. However, the region also received some much-needed moisture, some of it in the form of snow.

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.