Texas Weekly Ag Market Recap 6/11/14

Posted 10 years 170 days ago by

AUSTIN – (June 9, 2014) For the week ending June 7, 2014, Texas auctions quoted feeder cattle prices steady to as much as $10 higher per hundredweight (cwt). Texas direct feeder cattle prices were steady to $3 higher. Expectations that limited supplies will tighten and strong demand continue to support the market. Feeder cattle futures on Friday closed above $200 per cwt for the first time on record. Fed cattle cash prices were more than $2 higher per cwt. Wholesale beef values were lower. Beef export sales last week totaled 16,700 metric tons (MT), up 32 percent from the previous week and 34 percent higher than the prior four-week average. Export shipments of 12,000 MT were down 27 percent from the previous week and 17 percent below the average.

Cotton prices were down from a week earlier as rainfall on the Texas Plains and improving crop prospects continued to pressure the market. An addition, the International Cotton Advisory Committee said it expects world carryover supplies to increase and international trade to decrease. Price declines were partially offset by renewed buying interest and mostly-favorable export data. Cotton old-crop export sales of 131,500 bales were more than double the previous week and up two percent from the prior four-week average. New-crop cotton sales totaling 176,400 bales were up 54 percent from the previous week and 62 percent higher than the average. Export shipments of 168,200 bales were down 22 percent from a week earlier and 19 percent from the average, but still well above the weekly total needed to meet projections for the marketing year.

Wheat prices were higher as rains on the U.S. Southern Plains came too late to help much of the crop and are now hampering harvest. Early reports of some lower-than-expected yields also contributed to the increase. However, gains were limited by the advancing harvest and bearish export data. 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 percent from the previous week, but up 28 percent from the prior four-week average. Export shipments of 493,000 MT were down seven percent from the previous week and down 10 percent from the average.

Corn and grain sorghum prices were lower due to good planting progress and favorable growing conditions in much of the Corn Belt. Initial crop condition ratings were the third best on record, with 76 percent of the crop in good to excellent conditions. Corn old crop export sales of 550,700 MT were down five percent from the previous week, but up 39 percent from the prior four-week average. New crop corn sales totaling 19,600 MT were down 78 percent from the previous week and 76 percent from the average. Export shipments of 1,159,100 were down one percent from the previous week, three percent below the average and lower than the weekly total needed to meet projections for the marketing year.

Much of the state received rainfall during the week with totals ranging from a trace amount to more than three inches in a few locations. Totals of one-half inch or more were common south of I-40 and north of a line from Texarkana to San Angelo to Amarillo. Last week’s U.S. Drought Monitor showed a decline in overall conditions in Texas, with 91 percent of the state rated in some degree of drought or abnormal dryness, up from 89 percent a week ago. However, the areas in the two worst categories, extreme and exceptional drought, dropped again this week to 27 percent, down from 33 percent last week. Nationally, conditions remained unchanged with 48 percent the contiguous states reported in some degree of abnormal dryness or drought.

Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

		Week Ending	Previous	Previous
Texas Cash Markets:		June 7, 2014	Week	Year

Feeder Steers	$/cwt	187.68	184.69	135.22
Fed Cattle	$/cwt	145.27	143.13	122.00
Slaughter Lambs	$/cwt	163.50	168.00	87.50
Slaughter Goats	$/cwt	210.00	215.00	168.00
Cotton	¢/lb.	77.00	78.75	81.50
Grain Sorghum	$/cwt	7.98	8.11	12.16
Wheat	$/bu.	7.14	7.11	7.23
Corn	$/bu.	5.05	5.12	7.36
Watermelons	$/ lb.	0.14	0.19	0.20
Onions	$/sack	8.00	9.50	9.00

Futures Markets:

Feeder Cattle	$/cwt	200.52	197.05	143.62
Fed Cattle	$/cwt	140.12	137.80	120.12
Cotton	¢/lb.	84.78	86.27	84.86
Wheat	$/bu.	7.36	7.23	7.35
Corn	$/bu.	4.59	4.66	6.67
Lumber	$/MBF	306.50	312.30	308.90

All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.” MBF = thousand board feet. For additional information, contact TDA at (800) 835-5832 or visit our website, www.TexasAgriculture.gov.

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.