Texas Daily Ag Market Summary 7/3/14

Posted 10 years 148 days ago by

There will not be a report tomorrow due to the Independence Day holiday. I hope you all have a safe and happy July 4 weekend.

Feeder cattle steady to $4 higher; futures higher.
Fed cattle cash trade $4 higher; futures higher; Choice beef prices lower, Select higher.
Cotton lower.
Grains and soybeans lower, except rice futures higher.
Crude oil and natural gas lower.
Stock markets mixed, near unchanged.

Feeder cattle prices reported by Texas auctions were steady to $4 higher in a light market test as several locations shut down for the July 4 holiday. Feeder cattle futures were higher. The fed cattle cash trade jumped $4 higher to $158 per cwt, with support from higher beef prices, a short work week and smaller show lists Fed cattle futures fell on Wednesday morning, but then recovered in the last hour of trading to close higher. Wholesale boxed beef values were lower for Choice offerings, but higher for Select-grade cuts. Estimated cattle harvest so far this week totals 348,000 head, up 2K from last week, but down 24K from last year.

Cotton cash prices and futures were lower again yesterday as traders continue to adjust to Monday’s USDA acreage report showing higher than expected cotton plantings. Markets were already trending lower before the report, mostly due to prospects for a large crop and weak demand, so it only gave prices a little extra push. The International Cotton Advisory Committee cut its world cotton price outlook, saying that higher cotton stocks equivalent to nearly 11 months of consumption will continue to pressure the markets. Traders also noted that there is more scattered showers and thunderstorms are in the forecast for the Texas High Plains and expect another improvement in crop condition ratings in Monday’s weekly Crop Progress report. Wire service reports said yesterday, “The ‘stunning’ weather reversal (on the Texas Plains) may boost U.S. output by 32 percent. Prices that in March were the highest in 25 months are now down more than any commodity this year except soybean meal.”

Wheat prices slipped lower yesterday as large world supplies, weak demand and stiff export competition continue to pressure the market. The harvest issues and quality concerns in the U.S. have been priced into the market for the most part so there has been little bullish market action recently in that regard.

Corn and grain sorghum prices were modestly lower. Reports noted that favorable weather in much of the Corn Belt should aid pollination and that flooding in parts of Iowa and Illinois is expected to recede. Lower soybean prices also contributed to weakness in corn.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed another very slight improvement in overall conditions in Texas, with 87% of the state rated in some degree of drought or abnormal dryness, down from 89% a week ago. The areas in severe to exceptional drought remained near unchanged, but areas in moderate drought declined as abnormally dry areas expanded. Much of East and Southwest Texas remain drought-free. Nationally, the total area experiencing abnormal dryness or some degree of drought declined slightly to 44% of the contiguous states.

Stock markets were near unchanged yesterday as traders anticipated the monthly employment report released this morning. Payroll processor ADP said that the private sector added 281,000 jobs during June, much higher than pre-report expectations for an increase of 200,000 jobs. The Commerce Department reported that factory orders fell 0.5% during May, compared to expectations for a 0.3% decline.

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.