Texas Daily Ag Market Summary 5/28/14

Posted 10 years 184 days ago by

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

Feeder cattle prices reported by Texas auctions were mostly steady. Feeder cattle futures were higher. The recent dip in grain prices and demand from buyers who are trying to stay ahead of a declining supply continue to support the feeder cattle market. The rain over the weekend will help pastures, which were rated in mostly fair condition as of Sunday. The fed cattle cash trade remained inactive yesterday with initial asking prices at $145-$146 versus early packer bids of $142, compared to last week’s $143.61 average. Wholesale boxed beef values were higher and estimated week-to-date cattle slaughter of 123,000 head is much below last week because of the Monday holiday and down 6,000 head from last year. Fed cattle futures were lower.

Cotton cash prices and futures were lower yesterday as markets continued to adjust for the beneficial rains that fell over much of the major cotton-producing region around Lubbock. Ample moisture and warmer weather in other areas of the Cotton Belt also boosted crop prospects. However, there are suggestions that the recent drop in cotton prices may have gone too far. One rain won’t make the cotton crop, especially given the lack of subsoil moisture, so timely rainfall will be needed throughout the growing season. And U.S. cotton exports remain strong, especially at these prices. Cotton planting in Texas advanced to 49% complete, ahead of last year, but still behind the average pace. Nationally, cotton was 62% planted, also ahead of last year, but behind the average.

Wheat prices were lower because of the rain on the Plains and weekly export inspections that were about half the level needed to meet USDA projections for the marketing year. The rain came too late to help all of the crop. In Texas, 94% of the wheat acreage is headed and 12% has been harvested, ahead of both last year and the 5-year average. The crop is rated in mostly very poor to poor condition.

Corn and grain sorghum prices were also lower on expectations for good planting progress and improving prospects for this year’s crop. After markets closed, USDA reported that the national corn crop was 88% planted, now ahead of last year and equal to the 5-year average. In Texas, corn was 97% planted and 88% emerged, both ahead of the average. The crop was rated in mostly fair to good condition. Weekly export inspections were supportive, on the high end of pre-report expectations and higher than the weekly average needed to meet projections for the year.

Stock markets closed higher, with the S&P 500 hitting a new record high for the 11^th time this year. The Commerce Department reported that orders for durable goods rose by 0.8% during April, easily beating pre-report expectations. A metro-area home price index also increased more than expected. The Conference Board consumer confidence index was also higher, as expected. In addition, investors were also encouraged by European election results that “pointed to stability.”

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.