Texas Daily Ag Market Summary 7/8/14

Posted 10 years 143 days ago by

Feeder cattle auction trend n/a; futures higher.
Fed cattle cash trade inactive; futures lower; beef prices higher.
Cotton lower.
Grains and soybeans lower, except rice futures higher.
Crude oil and natural gas lower.
Stock markets lower.

No Texas feeder cattle price trend is available as most locations were closed on observance of the July 4 holiday. Oklahoma City quoted prices steady to $4 higher. Feeder cattle futures were higher. The fed cattle cash trade was inactive yesterday after setting a new record high last week, but fed cattle futures were lower. Reports said feedlot show lists were larger than last week, but about the same as two weeks ago, with initial asking prices set at $160 per cwt, up $2 from last week’s average. Wholesale boxed beef values were higher, with both Choice and Select-grade offerings posting new record highs. Last week’s estimated cattle harvest totaled 468,000 head, well below the previous week because of the July 4 holiday and down 27K below a year ago. Cumulative harvest for the year is running 6.5% below a year ago. On Monday, 112,000 head were harvested, down 5K from last week and 9K lower than a year ago. USDA NASS reported Texas pasture and range in mostly good to fair condition.

Cotton cash prices and futures were lower again yesterday as “Perceptions of favorable crop conditions and sluggish demand along with weak technical factors have continued to weigh on sentiment.” In addition, there were reports that India plans to export more than 11 million bales of cotton this year, considerably higher than expected and nearly double current USDA projections. An informal weekly survey by the USDA Agricultural Market News Service indicates that farmers have taken price contracts on a smaller percentage of the acreage this year, 6% so far versus 11% at this time a year ago. That’s understandable, given the weak prices. The same report said, “Fields were in full bloom last week in South Texas and the first open bolls were seen in the Rio Grande Valley, traditional source of the nation’s first new-crop supplies.” USDA NASS reported the Texas cotton crop 100% planted, with 36% of the acreage squaring and 9% setting bolls, both lower than average for this date. The crop was rated in mostly fair to good condition with an overall condition index of 65 points, up from 54 points at this time last year. The U.S. crop was rated mostly good to fair.

Wheat prices were lower as large world supplies and lackluster demand continue to drive the market lower. Reports noted that other than the harvest delays and quality concerns on the U.S. Southern Plains and dry weather in parts of the Black Sea region, global wheat prospects still favor a large 2014 crop. There might be some issues with exports from Russia and Ukraine due to the political instability in the region, but impacts have been limited so far. Weekly USDA export inspections totaled 417,100 metric tons, up from the previous week, but lower than a year ago. In Texas, winter wheat harvest advanced to 85% complete, compared to 82% at this time last year and 90% on average. The remaining crop is rated in mostly poor to very poor condition. Nationally, winter wheat harvest is 57% complete, compared to 60% on average. Condition ratings were pretty evenly split between good, fair, poor and very poor.

Corn and grain sorghum prices were lower as prospects for a large 2014 crop continue to pressure the market. Corn export inspections totaling 1.1 million MT were supportive, well above the prior week and nearly 5 times higher than a year ago. The Texas corn crop is 80% silked and 8% of the acreage is mature. Condition is mostly good to fair, with an overall rating of 82 points, modestly higher than the 78 points at this time last year. The U.S. corn crop is 15% silked and rated in mostly good to excellent condition. Grain sorghum export inspections were up from the previous week, but modestly lower than a year ago. Texas grain sorghum is 100% planted and 5% of the acreage has been harvested. The crop is rated in mostly good to fair condition. U.S. grain sorghum is 98% planted and also in mostly good to fair condition.

Stock markets closed lower yesterday ahead of the start of second quarter earnings reports. Alcoa and Wells Fargo will kick things off with results later this week, followed by a surge in reports next week. Wire service reports also noted that the solid employment report issued last week raised some concerns that the Federal Reserve might start raising interest rates sooner 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.