Texas Daily Ag Market Summary 6/9/14

Posted 10 years 172 days ago by

Feeder cattle steady to $10 higher; futures higher.
Fed cattle cash trade $2 higher; futures higher; beef prices lower.
Cotton lower.
Grains higher; soybeans lower.
Crude oil and natural gas higher.
Stock markets higher.

Feeder cattle prices reported by Texas auctions were mostly steady to $4 higher per cwt, with a few as much as $10 higher. Feeder cattle futures were higher, with the June contract closing above $200 per cwt for the first time on record. The fed cattle cash trade was $2 higher per cwt. Wholesale beef prices were lower on Friday. Estimated cattle slaughter for the week was up from the previous week’s holiday-reduced production, but down 34,000 head from a year ago. Cumulative cattle slaughter for the year is running 6.3% behind this time last year. Fed cattle futures were higher.

Cotton cash prices and July futures were lower, but deferred futures contract months were higher. Recent rains and forecasts for more continued to boost prospects for this year’s cotton crop and continued to pull prices lower. Commodity funds are rolling out of July futures contracts, pulling its price lower, and rolling into December contracts, which pushing prices higher for the deferred months. Thursday’s mostly-bullish export numbers were also supportive.

Wheat prices were higher on Friday as wire service reports noted that “the rain in the Southern Plains is far too late to help the hard red winter crop and is now delaying harvest activity.” There are also concerns about the quality of this year’s winter wheat crop. USDA will update its wheat production forecast on Wednesday

Corn and grain sorghum prices were higher, but ample world supplies and prospects for a large crop this year continue to pressure the market.

Stock markets closed higher on Friday. The Labor Department reported that the economy added 217,000 jobs during May, slightly below per-report expectations. The unemployment rate held steady at 6.3%, compared to expectations for an increase to 6.4%. The labor participation rate also held steady.

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.