Texas Daily Ag Market Summary 6/24/14

Posted 10 years 157 days ago by

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

Feeder cattle price trends quoted by Texas auctions were steady to $10 higher compared to their previous sale. The Oklahoma City National Stockyards, through mid-session, were steady to $6 higher on feeders cattle, but calves were $4-$5 lower, mostly due to a drop in quality versus a week ago. Last week’s higher corn prices and the ongoing drought likely contributed to the weakness at OKC. Feeder cattle futures were higher. The fed cattle cash trade was inactive yesterday, but USDA confirmed 3,500 head sold on a grid basis at $149 live and $236 dressed, up $1 and $2, respectively, from comparable sales last week. Wholesale boxed beef values were higher on Choice and sharply higher on Select-grade offerings. Estimated cattle slaughter was 115,000 head, up from both last week and a year ago. Fed cattle futures were higher.

Cotton cash prices were higher and futures were mostly higher, with only the nearby July contract posting a decline. The USDA Agric. Marketing Service said Friday in its weekly update, “Reports indicated cotton in South Texas and the Rio Grande Valley needed more rain to maximize yield potentials. Some fields were sprayed to control insects and weeds. Baseball-sized hail damaged equipment and interfered with planting in the southern Texas Rolling Plains, and weather destroyed some stands around San Angelo. Wind and blowing sand damaged some dryland cotton around Lamesa, but plants had formed new leaves and showed signs of recovery. Producers worked the fields with rotary hoes and sand fighters. Some acreage was replanted. Three weeks of rainfall improved soil conditions and increased viable dryland planted acreage, but all counties in the West Texas Plains remained in a drought category.” USDA NASS reported yesterday that cotton planting in Texas has advanced to 97% complete, slightly behind the 98% average for this date. 15% of the acreage is squaring and 5% is setting bolls. The crop was rated in mostly good to fair condition with an overall rating index of 66 points, up from 54 points at this time last year. Nationally, 25% of the acreage is setting bolls, compared to 27% on average, with 53% of the crop rated in good to excellent condition, up from 51% last week and 43% a year ago.

Wheat prices were lower yesterday as increasing harvest-time supplies continued to pressure the market. On the plus side, weekly export inspections totaled 581,500 MT, well above both last week and a year ago. In Texas, wheat harvest advanced to 69% complete, ahead of both last year and the 5-year average. The crop was rated in mostly poor to very poor condition, though the overall condition index was better than a year ago, 37 points now versus 26 points then. Nationally, 96% of the winter wheat acreage is headed, compared to the 94%average, and 33% of the crop is harvested, compared to 31% on average. About 25% of the crop is rated in each of the categories, very poor, poor, fair and good, with only 5% rated excellent.

Corn and grain sorghum prices were lower as conditions remain generally favorable for a large corn crop this year. Some additional storm/flood damage was reported in the Corn Belt, but damage from such events is usually very localized and therefore has limited impacts on national production. Corn export inspections were down from last week, but much higher than in the comparable week a year ago. In Texas, corn is 50% silked/tasseled, down from 58% on average for this time of year; 29% is in dough-stage, ahead of normal, and 5% is in dent, lower than the average. The crop was rated in mostly good to fair condition, with an overall condition index of 81 points, up from 79 points last year. Nationally, 74% of the acreage was rated in good to excellent condition, down from 76% last week, but better than the 65% at this time last year. Texas grain sorghum is 95% planted, 2 points above average, with the crop rated in mostly good to fair condition.

Stock markets closed mostly modestly lower, with only the Nasdaq Composite showing a slight increase. A Chinese manufacturing index was higher for the first time in 6 months. A European index of private sector activity fell to its lowest level in 6 months, mostly due to slowdowns in Germany and France. The National Association of Realtors reported that sales of single family homes rose by 4.9% in May, a larger increase than expected.

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.