Texas Daily Ag Market Summary 5/27/14

It rained! Some of the driest areas of the state west of I-35 received beneficial rain over the holiday weekend, with much of the major cotton producing region around Lubbock recording two to six inches of much-needed rain. The rain continued to fall this morning, primarily along and to the east of the I-35 corridor. Chances of thunderstorms remain in the forecast for much of the week, but rainfall amounts are expected to be much less that over the past few days.

Feeder cattle prices reported by Texas auctions late last week were steady to $5 higher per cwt compared to a week earlier. Texas direct feeder cattle sales were $3-$7 higher, with a few as much as $9 higher. Tight supplies and strong demand continue to support the feeder market. Several locations reported higher volumes of cows and bulls as pastures continued to dry-up in many areas. This past weekend’s rain should help slow that down for a little while. The fed cattle cash trade was $1 lower last week on 2,200 head. Wholesale boxed beef values were mixed on Friday, with Choice cuts modestly higher, but Select-grade offerings slightly lower. Estimated cattle slaughter for the week totaled 582,000 head, up 1,000 from a week earlier, but down 44,000 head from a year ago. Fed cattle futures were lower.

Cotton cash prices and futures were lower on Friday as better-than-expected rains in the Lubbock area boosted prospects for this year’s crop. Dr. O.A. Cleveland at Mississippi State University called it the million dollar rain. However, he also noted that the sustained dry conditions in the area and lack of subsoil moisture mean that timely rains will still be needed throughout the growing season. He said, “One cannot over emphasize the importance of continued timely rains in Texas. Yes, there is dancing is the streets now, but without moisture a month from now the dancing shoes will be covered with dust and wilting cotton.” A forecast for larger production in Brazil added to the pressure, but the large Chinese cotton purchases reported Thursday helped limit the decline.

USDA did not report any Texas High Plains cash grain prices on Friday, citing a lack of bids heading into the holiday weekend. However, wheat futures were again lower, mostly due to forecasts for rain on the U.S. Southern Plains. However, with well over half the U.S. crop headed – 89% in Texas – the moisture came too late for much of the acreage. crop. Corn futures were higher in spite of mostly-favorable prospects for this year’s crop. There are some ongoing concerns about planting delays in the Upper Midwest, which was also bumping up against crop insurance planting deadlines.

Stock markets closed modestly higher on Friday, with the S&P 500 hitting a new record high. The Commerce Department reported that sales of new single family homes rose more than expected during April. HP reported mixed first quarter results and Gap reported a steep drop in profits on better than expected revenues.

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.