Texas Daily Ag Market Summary 6/4/14

Posted 10 years 177 days ago by

Feeder cattle mostly $3-$10 higher; futures higher.
Fed cattle cash trade inactive; futures higher; beef prices higher.
Cotton cash prices unchanged; futures higher.
Grains and soybeans lower.
Crude oil and natural gas higher.
Stock markets modestly lower.

Feeder cattle prices reported by Texas auctions were mostly $3-$10 higher per cwt, with a few steady on a portion of their offerings. Several locations noted higher volumes of cows as cattle raisers adjusted stocking rates to the available forage. Feeder cattle futures were higher. The fed cattle cash trade remained inactive yesterday across all major U.S. cattle feeding regions with asking prices still at about $145, but no news yet on packer bids. Estimated cattle slaughter through Tuesday was running well below a year ago. Wholesale boxed beef values were higher. Fed cattle futures were higher.

Cotton cash prices were unchanged, but futures prices were higher as the market continues to rebound. Memories of last week’s beneficial rains on the Texas High Plains have been replaced by concerns about planting delays. Updated data from the International Cotton Advisory Committee was mostly bearish. A 2% drop in production is expected to be offset by higher carryover from the current marketing year and smaller international trade, mostly due to reduced imports by China. Overall consumption is expected to increase by 3%, but still be lower than it’s been over the past seven years. 2014/15 projected carryover is expected to increase by 5% to a record-high 96.1 million bales.

Wheat prices were lower by good spring wheat planting progress and the expanding winter wheat harvest in Texas. USDA reported that 16% of the state’s winter wheat had been harvested by last Sunday and 98% of the crop was headed. How much grain will be produced remains to be seen. There were early reports from the Rolling Plains region that yields ranged from 5 to 20 bushels per acre with some of the best looking fields coming in at about only 10 bushels, probably due to drought and the April freeze.

Corn and grain sorghum prices followed wheat and soybeans lower as early indications still point to a large corn crop this year. Wire service reports noted that 76% of the U.S. corn crop is rated in good to excellent condition, the third best initial crop condition rating on record. Losses were limited by renewed buying interest at the lower prices. “Even if there’s a lot of corn available, export and domestic demand are both good.”

Click here for this week’s AgriLife Extension crop weather report and regional comments.

Stock markets drifted lower yesterday in spite of “upbeat auto sales and factory data.” The U.S. Big Three automakers all posted higher sales in May. The Commerce Department reported that factory orders rose by 0.7% during April, beating estimates for a 0.5% increase.

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.