Texas Daily Ag Market Summary 6/6/14

Posted 10 years 175 days ago by

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Feeder cattle mostly $2-$5 higher; futures higher.
Fed cattle cash trade inactive; futures higher; beef prices lower.
Cotton cash prices unchanged; futures mixed.
Corn, grain sorghum and soybeans lower; wheat uneven.
Crude oil lower; natural gas higher.
Stock markets higher.

Feeder cattle prices reported by Texas auctions were mostly $2-$5 higher, with a few as much as $10 higher, but one location also steady to $2 lower on feeder heifers. Feeder cattle futures were also higher, with the spot-month June contract only 18 cents per cwt short of the $200 mark. Prospects that limited supplies will get even tighter and strong demand continue to support the market at record-high levels. The fed cattle cash trade was inactive across all major U.S. cattle feeding regions yesterday, though there were unconfirmed reports that a few head sold in Kansas at $145, up $2 from last week’s average. Wholesale boxed beef values were lower. Estimated cattle slaughter through Thursday totaled 464,000 head, down 36,000 from the same period a year ago. Fed cattle futures were higher.

Beef export sales last week totaled 16,700 metric tons (MT), up 32% from the previous week and 34% higher than the prior four-week average. Japan, Hong Kong and South Korea were the top buyers. Export shipments of 12,000 MT were down 27% from the previous week and 17% below the average. The leading destinations were Japan, Hong Kong and Mexico.

Cotton cash prices were unchanged, but futures were mostly lower in spite of mostly-bullish export numbers. Cotton old-crop export sales of 131,500 bales were more than double the previous week and up 2% from the prior four-week average. China, Turkey and South Korea were the top buyers. New-crop cotton sales totaling 176,400 bales were up 54% from the previous week and 62% higher than the average, with China, Turkey and Mexico the leading buyers. Export shipments of 168,200 bales were down 22% from the a week earlier and 19% from the average, but still well above the weekly total needed to meet projections for the marketing year. The primary destinations were Turkey, Vietnam and China.

Wheat prices were uneven yesterday, from 1 cent lower per bushel to 6 cents higher as disappointing export data was offset by private predictions for lower production this year. Informa Economics said it expects winter wheat production to total 1.4 billion bushels, down 138 million from last year and 6 million below last month’s USDA forecast. The advancing harvest that will increase already-abundant supplies was a factor in the market weakness. Wheat export sales for the current marketing year totaled only 2,000 MT, but were still better than the net cancellations reported a week earlier. Sales of new-crop wheat totaled 341,400 MT, down 36% from the previous week, but up 28% from the prior four-week average. Nigeria, Sri Lanka and Japan were the primary buyers. Export shipments of 493,000 MT were down 7% from the previous week and down 10% from the average. South Korea, Brazil and Taiwan were the top destinations.

Corn and grain sorghum prices continued to slide lower in response to good growing conditions and corn export sales near the low end of pre-report expectations. Corn old crop export sales of 550,700 MT were down 5% from the previous week, but up 39% from the prior four-week average. Japan, Columbia and Egypt were the leading buyers. New crop corn sales totaling 19,600 MT were down 78% from the previous week and 76% from the average, with Mexico and China the top buyers. Export shipments of 1,159,100 were down 1% from the previous week, 3% below the average and lower than the weekly total needed to meet projections for the marketing year. Japan, Columbia and Mexico were the top destinations

Stock markets were higher yesterday after the European Central Bank cut interest rates, hoping to boost the economy. The Labor Department reported yesterday that weekly unemployment claims rose to 312,000, somewhat higher than the 310,000 expected. Labor reported this morning that the economy added 217,000 jobs during May, slightly more than the 213,000 expected. The previous month’s employment was revised lower. The unemployment rate held steady at 6.3%, compared to expectations for a 0.1% 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.