Texas Daily Ag Market Summary 7/1/14

Posted 10 years 150 days ago by

The USDA National Agricultural Statistics Service released it Acreage, Grain Stocks and weekly Crop Progress reports yesterday. Highlights from those reports have been incorporated into the commodity comments below. For more detailed information on Texas crop plantings, including district-level estimates for cotton, grain sorghum and corn, please click here.

Feeder cattle auctions steady to $8 higher; record highs at OKC; futures lower.
Fed cattle cash trade inactive; futures higher; beef prices record high.
Cotton lower.
Grains and soybeans lower to sharply lower.
Crude oil lower; natural gas higher.
Stock markets mixed.

Feeder cattle prices reported by Texas auctions were steady to $8 higher per cwt and benchmark prices at Oklahoma City shattered previous record highs. Five-weight Medium to Large #1 and #1-2 steers averaged $255.50 per cwt, up $16 from last week, while 7-weight steers jumped nearly $7 to $215. Greener pastures across the region have summer stocker operators and feedlots in a heated competition for the limited supplies. This market is going to be relatively volatile and will peak at some point, but there is no indication that it’s going to happen any time soon. Feeder cattle futures were lower. The fed cattle cash trade was inactive on Monday. Reports have feedlot show lists smaller than a week ago, but no word yet on asking prices or packer bids. Wholesale boxed beef values posted new record highs yesterday for both Choice and Select-grade offerings. Estimated cattle harvest for Monday totaled 117,000 head, up 2K from a week ago, but down 5K from last year. Fed cattle futures were higher.

Cotton cash prices and futures were lower yesterday after USDA reported cotton planted acres totaling 11.4 million acres, up 4% from the March planting intentions, 9% higher than a year ago and at the top end of pre-report expectations. Texas farmers planted 6.45 million acres of upland cotton, 57.6% of the U.S. total and up 11% from 5.8 million acres in 2013. Recent rains should also reduce abandonment this year and boost production. USDA NASS reported separately that planting in Texas is 99% complete, compared to 100% last year and on average by this date. 18% of the acreage is squaring and 7% is setting bolls, both less than normal. The crop was rated in mostly fair to good condition with an overall condition index of 66 points compared to 58 points at this time last year.

Wheat prices were also lower, though losses were limited compared to corn and soybeans. Stocks on hand came in slightly below trade expectations, but larger than expected spring wheat plantings pressured prices lower. Wheat also continues to feel the pressure of weak demand and large global supplies. In Texas, winter wheat is 77% harvested, up from 70% at this time last year, but lower than the 79% average. The crop was rated in mostly poor to very poor condition, with a condition index of only 36 points on a scale of 1 to 100, definitely a weak rating, but still better than the 26 points at this time last year. Nationally, harvest is also running behind average at 40% complete.

Corn and grain sorghum prices were sharply lower yesterday. USDA corn planted acres came in at 91.6 million acres, very near pre-report expectations, down 4% from last year and the lowest acreage since 2010, but still the fifth largest U.S. corn acreage in 1944. However, stocks on hand were higher than expected and the crop remains in mostly good condition nationwide and mostly good to excellent condition in key Corn Belt states. Sharply lower soybean prices due to higher than expected stocks and planted acres (a record high 84.8 million) contributed to the drop in corn/grain sorghum prices. Texas farmers planted 2.1 million acres of corn, equal to the March intentions, but down 11% from last year. In Texas, 57% of the acreage is tassling or beyond and 2% is mature, both lower than average. The crop is in mostly good to fair condition. U.S. grain sorghum planted acres totaled 7.5 million acres, down 8% from a year ago. In Texas, grain sorghum acres totaled 3.0 million, unchanged from a year ago and the largest planted acres in the nation. Texas grain sorghum is 97% planted and rated in mostly good to fair condition.

Stock markets closed mixed yesterday on a slow news day with only a couple of indicators pointing opposite directions. The National Association of Realtors said that signed contracts to buy previously-owned homes rose 6.1% during May, the biggest monthly gain since April 2010 and higher than expected. A Midwest manufacturing index came in lower than a month ago and below expectations.

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.