Texas Daily Ag Market Summary 5/23/14

Posted 10 years 189 days ago by

The next market summary will be issued on Tuesday, May 27, as TDA offices will be closed Monday in observance of Memorial Day. I hope you all have a safe and enjoyable weekend. At some point on Monday, please take a moment to remember the brave men and women who gave their lives in service to our country. May we forever maintain the freedoms they fought and died for.

Feeder cattle steady to $10 higher; futures lower.
Fed cattle cash trade $1 lower; futures lower; beef prices higher.
Cotton lower.
Grains and soybeans mostly higher, except wheat lower.
Crude oil and natural gas lower.
Stock markets modestly higher.

Feeder cattle prices reported by Texas auctions were steady to as much as $10 higher per cwt. Though prices are generally trending higher, daily movements have become a little more erratic as buyers become increasingly selective in the face of record and near-record high feeder cattle markets. Clifton was steady to $2 higher on feeders and $2-$4 higher on stockers. Wichita Falls was mostly steady to $3 higher, but $5 lower on fleshy calves. Fredericksburg and Floydada were $2-$4 higher. Anderson County was $3-$5 higher. Pearsall was $5-$7 higher and Lampasas was $8-$10 higher. Feeder cattle futures were lower. The fed cattle cash trade was more than $1 lower per cwt on 2,100 head of USDA-confirmed sales. Wholesale boxed beef values were higher. Estimated cattle slaughter through Thursday totaled 470,000 head, even with a week ago, but down 31,000 from last year. Fed cattle futures followed cash prices lower.

Beef export sales last week totaled 12,200 metric tons (MT), down 5% from the previous week and 11% lower than the prior four-week average. Japan, Mexico and South Korea were the top buyers. Export shipments totaling 14,000 MT were up 1% from the previous week and up 9% from the average. The leading destinations were Japan, Hong Kong and Mexico.

Cotton cash prices and futures were lower in spite of the largest weekly export sales since late January and shipments higher than the weekly average needed to meet USDA expectations for the marketing year. Forecasts for rain on the Texas High Plains, good planting progress and speculative positioning ahead of the holiday weekend seemed to be the primary causes for the drop in prices. Cotton export sales for the week totaled 358,300 bales of old-crop cotton, more than 10 times higher than the previous week and 5 times higher than the prior four-week average. China, Vietnam and Turkey were the primary buyers. An additional 158,400 bales of new-crop cotton were also sold. Shipments of 190,000 bales were down 10% from the previous week and down 11% from the average. The top destinations were Mexico, China and Turkey.

Wheat prices were lower as weak global demand continues to pressure the market. The rains mentioned earlier could help the crop in some areas, but is likely too late to do much good overall. It areas where harvest is underway or will be soon, thunderstorms, high winds and hail could actually do more harm than good. Export data were mixed. Wheat export sales totaled 142,200 MT of old-crop wheat, more than double the previous week, but down 39% from the prior four-week average. Taiwan, Ecuador and Brazil were the top buyers. Sales of new-crop wheat totaled 209,800 MT. Shipments of 507,500 MT were down 20% from the previous week and 14% below the average. The primary destinations were Mexico, the Philippines and Thailand.

Corn and grain sorghum prices were higher after corn export sales came in on the higher end of pre-report expectations. Corn export sales for the week of 507,900 MT of old-crop corn, up 48% from the previous week, but down 1% from the prior four-week average. South Korea, Mexico and Columbia were the primary buyers. New-crop sales totaled 62,500 MT. Export shipments totaling 1,159,100 MT were up 13% from a week earlier, but down 12% from the average. The leading destinations were South Korea, Japan and Columbia.

Stock markets closed modestly higher yesterday on mixed economic data and corporate news. The Labor Department reported that new unemployment claims last week rose to 326,000, much more than the 310,000 expected. The National Association of Realtors reported that sales of existing single family homes rose by 1.3% during April, slightly below expectations. Best Buy posted mixed first quarter results. Sears said its first quarter losses are getting worse as sales continue to fall.

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.