Texas Daily Ag Market Summary 6/23/14

Posted 10 years 158 days ago by

Feeder cattle steady to $10 higher, few $20 higher; futures lower.
Fed cattle cash trade $3 higher; futures lower; beef prices higher.
Cotton higher; futures mixed.
Corn and grain sorghum higher; wheat and soybeans lower.
Crude oil higher; natural gas lower.
Stock markets modestly higher.

Feeder cattle prices reported by Texas auctions were mostly steady to $10 higher per cwt, with a load of thinner preconditioned feeders at one location $20 higher than comparable cattle at last week’s sale. Texas direct feeder cattle sales were up $1-$4, with a few $8 higher. The fed cattle cash trade was nearly $3 higher for the week. Early reports suggest larger show lists and lower prices this week, but sellers will likely be reluctant to accept lower bids when their costs for feeder cattle continue to rise, as do beef prices received by packers. Wholesale boxed beef prices were higher on Friday and gained $9-$10 for the week. Estimated cattle harvest last week totaled 613,000 head, up from the previous week, but lower than a year ago. For the year, cumulative harvest is running 6.3% behind a year ago. Fed cattle futures were lower.

The USDA NASS Cattle on Feed report issued Friday afternoon showed 10.6 million head of cattle on feed in the U.S. in feedlots with capacities of 1,000 or more head, down 2% from a year ago and equal to pre-report expectations. Placements on feed totaled 1.91 million head, down 7% and also equal to expectations. Marketings by feedlots were down 4% to 1.87 million head, the lowest May marketings since the data series began in 1996. In Texas, feedlot inventories totaled 2.55 million head, down 3% from a year ago. Placements were up 2% and marketings were down 3%. Texas regained its spot as the #1 cattle feeding state in the nation.

Cotton cash prices were higher Friday, but cotton futures were mixed. There was not much new fundamental information to move the market much in either direction. Cotton Outlook increased its forecasts of end-of-year carryover for both the old-crop 2013/14 marketing year and for the 2014/15 new-crop year.

Wheat prices were lower Friday. There was no fresh news so the bearish large world supplies, weak global demand and pressure from increasing harvest-time supplies pulled prices lower again. Harvest delays and reports of poor yields on the U.S. Southern Plains remained somewhat supportive, but much of that impact has already been priced into the market.

Corn and grain sorghum prices were higher as traders grew increasingly concerned about excessive rain in parts of the Corn Belt. River flooding has also slowed down barge traffic and that may have been a factor, too.

New Zealand’s Prime Minister has joined U.S. farm groups in saying that Japan should be cut out of Trans-Pacific Partnership trade talks if it won’t open its markets to more ag imports. Reports noted, “Japan has been reluctant to open up agricultural markets such as pork, beef, rice and dairy, and U.S. trade negotiators seem willing to allow the country to keep some protection for sensitive products, upsetting U.S. farmers.”

Stock markets closed modestly higher on Friday. With no economic reports for the day, traders remained focused on comments Thursday by Fed Chairwoman Yellen that indicated U.S. monetary policy “will remain accommodative, even as the central bank has scaled back its stimulus program.”

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.