Texas Daily Ag Market Summary 5/21/14

Posted 10 years 191 days ago by

Feeder cattle steady to $12; futures mostly lower.
Fed cattle cash trade inactive; futures lower; beef prices sharply higher.
Cotton cash prices higher; futures mostly lower.
Grains and soybeans lower.
Crude oil lower; natural gas higher.
Stock markets lower.

Feeder cattle prices reported by Texas auctions were mostly $5-$10 higher per cwt. A few representative locations – Graham was $2-$5 higher. Jordon in Mason was steady on feeder cattle and $5-$10 higher on stockers. Live Oak at Three Rivers was $8-$12 higher on light-weight calves and $6-$10 higher on heavier calves and yearlings. Giddings was steady and at Amarillo receipts were too light to call a trend. A couple locations noted higher volumes of cows and bulls as ranchers lowered stocking rates due drought. Feeder cattle futures were lower with only the nearby May contract higher. The fed cattle cash trade remained quiet yesterday across all major U.S. cattle feeding regions. Reports pegged initial asking prices this week at $147-$149, up $2-$4 from last week’s average. Wholesale boxed beef values were sharply higher for Choice offerings and higher for Select. Estimated cattle slaughter so far this week is running 1,000 head above last week, but 15,000 below a year ago. Fed cattle futures were lower on speculative profit-taking following Monday’s advance.

Cotton cash prices were higher for the first time in in nearly 2 weeks, having lost 3.75 cents during that period. However, cotton futures were mostly lower. There is a 20%-60% chance of thunderstorms on the Texas Plains for today through the weekend, far from a sure thing, but enough to catch traders’ attention. As one review noted, “Most areas are not expected to see drought busting relief from the event.” China reported that its cotton imports were up slightly for April.

Wheat prices were unchanged to slightly lower on hopes for beneficial rains, speculative profit-taking on the underlying futures and concerns about global demand. The decline was limited by the continued very dry conditions on the U.S. Southern Plains and planting delays in the north.

Corn and grain sorghum were lower because of reports showing good planting progress and growing expectations for a large corn crop this year. As noted previously, the earlier rains that delayed planting will also help the crop get off to a solid start.

Stock markets fell lower yesterday after remarks by the presidents of the Philadelphia and New York Federal Reserve Banks reminded investors that Fed policy is changing. At some point, they will end their massive bond purchases and raise interest rates. In addition, both Home Depot and Urban Outfitters reported mixed results for the first quarter.

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.