Texas Daily Ag Market Summary 5/29/14

Posted 10 years 183 days ago by

Feeder cattle mostly steady, few $3-$6 higher; futures higher.
Fed cattle cash trade inactive; futures higher; beef prices higher.
Cotton cash prices unchanged; futures modestly lower.
Corn and grain sorghum higher; wheat, rice and soybeans lower.
Crude oil lower; natural gas higher.
Stock markets modestly lower.

Feeder cattle prices reported by Texas auctions were mostly steady, with one location $3-$6 higher. Receipts were generally very light because of the heavy rains over the holiday weekend. Feeder cattle futures were higher, with the nearby contract getting closer and closer to $200 per cwt. Higher cash prices, cheaper feed costs and shrinking supplies continue to support the market. The fed cattle cash trade remained inactive yesterday. Wire service reports put initial feedlot asking prices at $145-$146 per cwt versus packer bids of $141-$142. Wholesale boxed beef values were higher and estimated cattle slaughter week-to-date continues to run well below both last week (because of the Monday holiday) and a year ago. Fed cattle futures were higher.

Cotton cash prices were unchanged, but futures were modestly lower. There was little fresh news yesterday so cash prices held tight for a second straight day and futures drifted lower. The rains here in Texas and good planting progress across the Cotton Belt pressured prices.

Wheat prices were lower again yesterday with the nearby futures contract down for 12 of the last 13 trading sessions. Ample world supplies, winter wheat harvest that is getting started and weak demand continue to pull prices lower. Traders are still watching the political situation in Ukraine, but so far it’s failed to provide a big boost for U.S. exports and probably won’t unless things get considerably worse.

Corn and grain sorghum prices were higher in spite of good planting progress and improved growing weather. Planting delays in the northern and eastern Corn Belt remain a concern.

Stock markets closed modestly lower yesterday with no significant news to move equities much in either direction. There were no U.S. economic reports. Germany reported an increase in unemployment, compared to pre-report expectations for a decline.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed another slight improvement following the weekend rain, with 89% of the state rated abnormally dry or in some degree of drought, down one percentage point from a week ago. The most notable improvement was a 14 percentage point drop in the area rated in the worst category, exceptional drought, thanks to the rain on the Texas High Plains. Even with those rains, most of the state west of I-45, east of the Pecos River and north of Corpus Christi remain in some degree of drought. As noted previously, it’s going to take more than one rain to pull us out of this drought. Nationally, conditions remained unchanged with 48 percent the contiguous states reported in some degree of abnormal dryness or drought.

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.