Texas Daily Ag Market Summary 6/11/14

Posted 10 years 170 days ago by

I was out unexpectedly yesterday so we will try to get caught up on markets today:

Yesterday,

Feeder cattle higher mostly $4-$15 higher; futures record high.
Fed cattle cash trade inactive; futures higher; beef prices higher.
Cotton higher.
Grains lower; soybeans higher.
Crude oil and natural gas lower.
Stock markets near unchanged.

Monday,

Feeder cattle mostly steady to $4; futures set new record high.
Fed cattle cash trade inactive; futures higher; beef prices higher.
Cotton lower.
Grains lower; soybeans mixed.
Crude oil higher; natural gas lower.
Stock markets modestly higher.

Feeder cattle prices reported by Texas auctions were mostly steady to $4 higher per cwt, with a few as much as $8 higher. Feeder cattle futures set a new record high of $203.52 after fed cattle futures rose and corn futures declined. Feeder cattle supplies continue to shrink and demand remains strong. The fed cattle cash trade was inactive through Tuesday, with initial asking prices at $147, compared to last week’s average of $145. Reports noted a few packer bids in Kansas at $142. Wholesale boxed beef values were higher Monday and Tuesday. Estimated cattle slaughter for the first two days of the week totaled 230,000 head, down 1,000 from last week and 17,000 below a year ago. Fed cattle futures were higher.

Cotton prices were lower on Monday, but higher yesterday in spite of predictions that USDA will raise its projected 2014/15 production and ending stocks. Traders noted that export sales have been good and shipments have been higher than the level needed to meet projections for the marketing year. They expect supplies to remain relatively tight until new-crop cotton begins to hit the market in volume, which probably won’t happen until November.

Wheat prices were lower both Monday and yesterday as large world supplies and lackluster demand continue to pressure the market. Rain has delayed the winter wheat harvest in some areas and in some cases early yields have been even lower than expected.

Corn and grain sorghum prices were also lower as favorable growing conditions in many areas of the Corn Belt continue to support prospects for a big crop.

Stock markets closed modestly higher on Monday, with both the Dow and S&P 500 setting new record highs. There were no economic reports so traders focused on corporate news, including Tyson Foods’ winning offer to buy Hillshire Brands for $8.6 billion. Merck also announced a $23.85 billion deal for another pharmaceutical maker.

Yesterday, stocks were near unchanged, with the S&P 500 down less than 1 point and the Dow up 3 points, not much, but still a new record high. The D-J Total Stock Market Index was down slightly. Traders noted that the slowly improving U.S. economy and “accommodative central bank policies” continue to support the market. Wholesale inventories increased more than expected during April. A small business sentiment index came in higher than expected at its highest reading since September 2007. Radio Shack stock fell after its first quarter earnings and revenue came in lower than expected. GM declined after its CEO said that it would not have an estimate of financial losses resulting from its recalls until next month.

The U.S. EPA announced yesterday that it is extending the comment period for its “Waters of the U.S.” rule from July 21 to October 30. “Comment on the interpretive rule governing agricultural exemptions that accompanied the Waters of the U.S. rule will be extended from June 5 to July 7.”

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.