Texas Daily Ag Market Summary 6/16/14

Posted 10 years 165 days ago by

Feeder cattle $2-$10 higher; futures new record high.
Fed cattle cash trade $2 higher for the week; futures higher; beef prices higher.
Cotton higher.
Grains and soybeans higher.
Crude oil higher; natural gas lower.
Stock markets higher.

Feeder cattle prices reported by Texas auctions were $2-$10 higher per cwt as record-high futures prices, higher fed cattle and lower corn continued to support the market. Reports have noted that feedlots don’t see much (or any profit) in paying so much for feeder cattle and would just as soon pass on them at current prices. However, they’re even more concerned that the cattle supplies won’t be there in the future, so they’re buying them anyway, and hoping they can make up for it in their cost of gain or in higher fed cattle prices this fall. The fed cattle cash trade was quiet on Friday after prices pushed $2 higher on Thursday to $147-$148 per cwt. Wholesale boxed beef values were higher and estimated cattle slaughter for the week totaled 605,000 head, down 9,000 head from the previous week and 39,000 below a year ago. For the year, cattle slaughter is running 6.3% below a year ago. Fed cattle futures were higher.

Cotton cash prices and futures were higher on Friday as tight current supplies continued to support the market. However, gains were much more limited in deferred futures months and the December contract even posted a modest decline. Thursday’s weekly export report was decidedly bearish, but as several reports noted, there was one bright spot as export shipments were well above the weekly average needed to meet USDA projections for the marketing year.

Wheat prices ended the week on a higher note as commercial buying interest picked up following the recent price declines. However, ample world supplies, weak demand and increasing harvest-time supplies continued to pressure the market and limited the gains. Corn and grain sorghum prices were higher on Friday also due to renewed buying interest at recently-lower prices.

Stock markets closed moderately higher on Friday. Traders were still concerned about the situation in Iraq, but an improved sales outlook from Intel helped spark a modest rally. A major consumer sentiment index came in lower than a month ago and lower than expected. The Labor Department reported that wholesale prices fell 0.2% during May, 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.