Texas Weekly Ag Market Recap 7/1/14

Posted 10 years 150 days ago by

AUSTIN – (June 30, 2014) For the week ending June 28, 2014, Texas auctions quoted feeder cattle prices mostly $2 to $10 higher per hundredweight (cwt), with a few steady and some as much as $15 higher. Texas direct feeder cattle prices were $1 to $7 higher. Strong competition for limited supplies of feeder cattle continues to support the market at record or near-record high levels. Fed cattle cash prices were up more than $4 to a new record high of $154 per cwt. Wholesale beef values were $4 to $5 higher per cwt. Beef export sales of 17,100 metric tons (MT) were up six percent from the previous week and up 31 percent from the prior four-week average. Export shipments totaled 15,500 MT, up seven percent from a week earlier and eight percent higher than the average.

Cotton prices were lower as conditions across the Cotton Belt remained favorable for a large 2014 crop. Weak export data also contributed the decline. On the other hand, traders are keeping an eye on dry conditions in Australia, China and India, where annual monsoon rains have failed to develop. Export sales were lower than expected, but not a total surprise due to the tight supplies of uncommitted cotton. Sales for the 2013-14 old-crop year totaled only 3,600 bales, much lower than both last week and the four week average. New-crop cotton sales of 24,100 bales also were down sharply, 77 percent lower than the previous week and 79 percent below the average. Exports of 126,400 bales were up six percent from a week earlier, but down 28 percent from the average and smaller than the weekly total needed to meet projections for the marketing year.

Wheat prices were unchanged for the week. Price support from harvest delays on the U.S. Southern Plains, lower than expected yields in some areas and quality concerns offset the pressure from favorable conditions elsewhere in the world, ample global supplies and mixed export data. Wheat export sales of 359,400 MT were down four percent from the previous week. Exports totaling 587,000 MT were up 12 percent from last week.

Corn and grain sorghum prices were lower as overall crop conditions continue to favor a large corn crop this year. However, parts of the Corn Belt have experienced localized problems with excessive rains, cool temperatures and flooding. Export data was supportive. Corn export sales totaling 321,400 MT for the 2013-14 marketing year were three times higher than the previous week, but down 22 percent from the average. Sales of new-crop corn for the 2014-15 marketing year were three times higher than the previous week and three times higher than the average. Exports of 1,154,500 were up three percent from the previous week and two percent above the average.

Most of the state received rainfall during the week with the heaviest accumulations of two inches or more reported in the Coastal Bend, Upper Coast and East Texas regions. Last week’s U.S. Drought Monitor showed a very slight improvement in overall conditions in Texas, with 89 percent of the state rated in some degree of drought or abnormal dryness, down from 90 percent a week ago. The areas in severe to exceptional drought declined, but areas in moderate drought expanded. Much of East Texas and a section of South Texas remain drought-free. Nationally, the total area experiencing abnormal dryness or some degree of drought remained unchanged at 45 percent of the contiguous states.

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 28, 2014	Week	Year

Feeder Steers	$/cwt	202.89	200.06	140.08
Fed Cattle	$/cwt	154.08	149.56	119.86
Slaughter Lambs	$/cwt	160.50	157.50	97.50
Slaughter Goats	$/cwt	216.00	213.00	182.00
Cotton	¢/lb.	74.50	78.25	82.50
Grain Sorghum	$/cwt	7.69	7.97	12.31
Wheat	$/bu.	7.11	7.11	6.81
Corn	$/bu.	4.88	4.99	7.52
Watermelons	$/ lb.	0.16	0.17	0.21
Onions	$/sack	7.50	8.50	9.50

Futures Markets:

Feeder Cattle	$/cwt	214.32	206.87	149.45
Fed Cattle	$/cwt	152.25	147.55	118.15
Cotton	¢/lb.	80.89	88.16	82.71
Wheat	$/bu.	7.26	7.21	6.76
Corn	$/bu.	4.43	4.53	6.79
Lumber	$/MBF	337.50	328.70	297.60

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.