Texas Weekly Ag Market Recap 4/28/14

Posted 10 years 214 days ago by

AUSTIN – (April 28, 2014) For the week ending April 26, 2014, feeder cattle prices reported by Texas auctions were mostly steady compared to their previous sale, though a few locations were as much as $5 lower per hundredweight (cwt) on a portion of their offerings and some were $5 higher. Texas direct feeder cattle prices were steady on cattle weighing less than 800 pounds and steady to $3 higher on heavier weights. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $0.67 lower per cwt. Wholesale beef values were higher. Beef export sales of 18,000 metric tons (MT) were down 18 percent from the previous week, but up seven percent from the prior four-week average. The leading buyers were Mexico, South Korea and Japan. Shipments totaled 11,900 MT, down six percent from a week earlier and three percent lower than the average.

Cotton prices were higher for the week due to concerns about the very dry conditions on the Texas Plains and expectations for lower cotton production in Australia. Australia is the world’s third largest cotton exporter behind the U.S. and India. Export data were also supportive. Cotton export sales for the week totaled 124,100 bales, up 46 percent from the previous week and nearly three times higher than the prior four-week average. The primary buyers were China, Vietnam and Philippines. An additional 16,400 bales were sold from the 2014/15 crop. Export shipments totaled 219,900 bales, down 22 percent from the previous week and down 20 percent from the average.

Wheat prices were higher amid concerns about dry conditions in U.S. winter wheat areas, earlier freeze damage and the continued turmoil in Ukraine. Export data were generally bearish. Wheat export sales of 339,100 MT were down 20 percent from a week earlier, but up 13 percent from the prior four-week average, and well within the range of pre-report expectations. The leading buyers were Japan, Taiwan and South Korea. Sales for the 2014/15 crop year totaled 271,700 MT. Shipments totaling 519,400 MT were down four percent from the previous week and down three percent from the average.

Corn and grain sorghum prices were higher because of concerns about planting delays and reports of a large U.S. grain sorghum sale to China. However, planting was just getting underway in the major Corn Belt states and farmers there could catch up very quickly. Export data were neutral to supportive. Corn export sales for the week totaled 618,900 MT, up 15 percent from the previous week and on the high end of pre-report expectations, but down 30 percent from the prior four-week average. The top buyers were South Korea, Japan and Columbia. An additional 382,900 MT were sold for the 2014/15 marketing year. Shipments of 1,621,100 MT were up 52 percent from a week earlier and 33 percent higher than the average.

Parts of East Texas, North Texas and the Edwards Plateau recorded one-half inch or more of rainfall last week, but most of the state saw little or no precipitation. Last week’s U.S. Drought Monitor showed a decline in overall conditions in Texas, with 86 percent of the state now rated as abnormally dry or in some degree of drought, compared to 82 percent a week ago. Areas in the two worst categories of extreme and exceptional drought increased to cover a large part of West Texas. Almost all the High Plains and Northern Low Plains are in exceptional drought. Parts of East and South Texas and the Trans-Pecos remain drought-free. Nationally, conditions also slipped somewhat with 50 percent the contiguous states reported in some degree of abnormal dryness or drought, up two percentage points 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:		April 26, 2014	Week	Year

Feeder Steers	$/cwt	172.48	176.65	135.16
Fed Cattle	$/cwt	145.15	145.82	127.79
Slaughter Lambs	$/cwt	169.00	170.00	120.00
Slaughter Goats	$/cwt	220.00	207.50	194.00
Cotton	¢/lb.	84.25	84.00	80.50
Grain Sorghum	$/cwt	8.98	8.80	11.18
Wheat	$/bu.	7.67	7.53	7.27
Corn	$/bu.	5.60	5.39	6.92
Grapefruit	$/carton	12.65	12.65	n/a
Cabbage	$/50 lbs.	8.00	6.50	n/a
Onions	$/40 lbs.	12.00	15.00	11.00

Futures Markets:

Feeder Cattle	$/cwt	180.00	178.55	141.80
Fed Cattle	$/cwt	145.00	144.20	127.85
Cotton	¢/lb.	92.95	90.17	82.25
Wheat	$/bu.	7.76	7.58	7.57
Corn	$/bu.	5.07	4.95	6.44
Lumber	$/MBF	335.50	329.70	353.00

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 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.