Texas Daily Ag Market Summary 4/30/14

Posted 10 years 212 days ago by

Feeder cattle mostly steady to $4 higher; futures mostly higher.
Fed cattle cash trade inactive; futures higher; Choice beef prices higher, Select lower.
Cotton higher.
Grains and soybeans higher.
Crude oil and natural gas higher.
Stock markets higher.

Texas feeder cattle auction prices were reported mostly steady at several locations and $1-$4 higher per cwt at others. Feeder cattle futures were mostly higher, with only the spot-month May contract lower. The fed cattle cash trade was inactive across all major U.S. cattle feeding regions with feedlots asking $148, up $3 from a week ago, but packers holding back on bids until the April futures contract expires at the end of today’s session. Wholesale boxed beef values were higher for Choice, but lower for Select-grade offerings. Estimated cattle slaughter through Tuesday was up from a week ago, but down from last year. Fed cattle futures were higher.

Cotton cash prices and futures were higher because of the ongoing very dry conditions on the Texas High Plains and the slow planting progress reported in Monday’s USDA crop-weather report. Farmers can plant a lot of cotton in a hurry when conditions are favorable, so there is not a lot of concern at this point about getting the crop in the ground. However, yields will suffer and abandonment will be high if they don’t get timely rains. High winds and lack of rain in the forecast contributed to the increase. On the down side, cotton imports by Indonesia are expected to grow less than expected. The country is the fifth largest importer of U.S. cotton.

Wheat prices were high due to the decline in crop conditions reported Monday by USDA. Speculative activity on the underlying futures contract and weather concerns for Australia and Russia also contributed to the increase.

Corn and grain sorghum were higher mostly because of planting delays. In most areas of the Corn Belt, corn yields are generally lower on acreage planted after about May 15 as that can push the critical pollination phase into the hottest, driest parts of summer.

Stock markets were higher yesterday. A home price index for 20 metro areas was unchanged for February, as expected, but was lower than expected compared to a year ago. A closely-watched consumer sentiment index declined more than expected in April. The Federal Reserve is meeting this week and a policy statement is expected later today. No major changes are expected. eBay and Twitter reported better than expected first quarter results after the session closed.

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.