Texas Daily Ag Market Summary 5/5/14

Posted 10 years 207 days ago by

Feeder cattle steady to $5 higher; futures lower.
Fed cattle cash trade 67 cents higher; futures lower; beef prices lower.
Cotton cash prices unchanged; futures modestly higher.
Wheat and soybeans higher; corn, grain sorghum, rice lower.
Crude oil higher; natural gas lower.
Stock markets lower.

Texas auctions reported feeder cattle prices steady to $5 higher, with Tulia $6-$8 higher on steers weighing 900 lbs. or more. Texas direct feeder cattle sales were steady to $2 higher early in the week and as much as $5 higher later. Feeder cattle futures were lower. The fed cattle cash trade was 67 cents higher per cwt. Wholesale boxed beef values were lower on Friday. Estimated cattle slaughter last week was well above the previous week, but down from a year ago. Cumulative slaughter so far this year is running 6.1% below a year ago. Fed cattle futures were lower.

Cotton cash prices were again unchanged, but futures were modestly higher as the market remains concerned about the very dry conditions in Texas and water shortages in CA. Meanwhile, reports noted that excessive rains have stalled planting in the Southeast. However, price gains were limited by weak export data and general economic concerns. Demand remains strong for high-quality U.S. cotton, but sources said that much of what is left uncommitted is not high-quality and is priced on par or higher than comparable foreign supplies.

Wheat prices were higher Friday on reports that the Kansas winter wheat crop could be the smallest since 1996, with Oklahoma wheat not much better. In addition, the very dry conditions on the Texas High Plains are expected to significantly reduce production here. However, Informa Economics expects U.S. winter wheat production this year to total 1.496 billion bushels, only 2.5% below a year ago.

Corn and grain sorghum prices were lower due to expectations for “solid planting progress over the next few days.”

Stock markets closed modestly lower on Friday “after mixed jobs data sapped Wall Street’s enthusiasm.” The Labor Department reported that the U.S. economy added 288,000 jobs during April, well above the 210,000 increase expected and the largest increase since January 2012. As a result, the unemployment rate fell to 6.3%, the lowest since September 2008. However, the labor force participation rate, which measures the percentage of the working-age population that is employed or looking for job, fell during April to 62.8%. Also on Friday, the Commerce Department reported that factory orders rose by 1.1% during March, below pre-report expectations.

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.