Texas Daily Ag Market Summary 6/3/14

Posted 10 years 178 days ago by

Feeder cattle mostly $2-$5 higher, few steady; futures higher.
Fed cattle cash trade inactive; futures mixed; beef prices lower.
Cotton higher.
Grains unchanged to lower; soybeans higher.
Crude oil lower; natural gas higher.
Stock markets mostly slightly higher.

Feeder cattle prices reported by Texas auctions were mostly $2-$5 higher cwt, with a few steady, compared to their previous sale (in some cases, 2 weeks ago). Market fundamentals have not changed much for a while now and remain very supportive of feeder cattle prices. And that will likely remain the case until cattle herds are rebuilt or something happens to beef demand. Feeder cattle futures were higher. USDA NASS reported Texas pastures were in in mostly fair to good condition, with some improvement following recent rainfall. The fed cattle cash trade was quiet on Monday after slipping about 50 cents lower per cwt last week. Fed prices remain at historically high levels, up 17% from a year ago and only 5% off the record high set at the end of February. Initial asking prices this week were reported at $144-$145, but no word yet on packer bids. Most observers expected larger feedlot show lists this week and expanded supplies of available fed cattle for most of the month, based on feedlot placement data. However, reports yesterday indicated slightly larger offerings in Nebraska and Kansas, but sharply lower numbers in Texas and Colorado. One report said that packer purchases for future delivery, which don’t show up in the cash market reports, may be one reason for the smaller show lists. The cattle may still be in the feedlot, but already committed. Estimated cattle slaughter on Monday was well below a year ago. Wholesale boxed beef values were lower and fed cattle futures were lower.

Cotton cash prices and futures were higher yesterday as buying interest picked up following recent price declines. USDA NASS reported that 74% of the U.S. cotton crop has been planted, slightly behind both last year and the five-year average. In Texas, planting was 62% complete, also behind the normal pace as the rain early last week delayed fieldwork in some areas. The Texas crop was rated in mostly fair to good condition with an overall condition index of 65 points (out of 100), compared to 59 points at this time last year.

Wheat prices were lower in spite of weekly export inspections that were on the high end of pre-report expectations. Texas winter wheat is 98% headed and 16% of the acreage has been harvested. The crop was rated in mostly very poor to poor conditions. For the U.S., 79% of the U.S. winter wheat crop is headed, ahead of both last year and the five-year average.

Corn and grain sorghum prices were unchanged to modestly lower as good planting progress and favorable weather in much of the Corn Belt continue to pressure the market. Losses were limited by concerns that some acreage originally intended for corn could be shifted to soybeans, especially in the Upper Midwest. According to the USDA, 95% of corn is planted, compared to 90% a year ago and 94% on average, with 80% of corn emerged, compared to 71% last year and 80% on average. In the first rating of the season, 76% of the U.S. corn crop is in good to excellent condition. In Texas, almost all the corn crop has been planted and emerged, with nearly a third of the acreage tasseling. The crop was rated in mostly fair to good condition. Texas grain sorghum was 85% planted and 34% headed.

Stock markets closed mostly slightly higher after a twice-revised Institute for Supply Management manufacturing index came in higher than a month ago, but still modestly lower than pre-report expectations. A Chinese manufacturing index showed an expansion, but barely. Investors were also concerned about “a slight downward revision to a gauge of euro-zone factory activity, coupled with tepid German inflation data.”

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.