Texas Weekly Ag Market Recap 7/15/14

Posted 10 years 137 days ago by

AUSTIN – (July 14, 2014) For the week ending July 12, 2014, Texas auctions quoted feeder cattle prices mostly steady to $10 higher per hundredweight (cwt) early in the week. Later, following a drop in futures markets and fed cattle, prices were mostly steady to $4 lower. Texas direct feeder cattle sales were steady to $4 higher. Fed cattle cash prices were down $2.50 from the previous week’s record high. Wholesale beef values were $4 higher per cwt to reach new record highs. Reduced cattle supplies and strong demand continue to support prices throughout the cattle sector. Beef export sales for the week were three times higher than the previous week and up 58 percent from the prior four-week average. Export shipments were up nine percent from a week earlier and up six percent from the average.

Cotton prices were lower amid expectations for larger production this year. Last week, 55 percent of the U.S. crop was rated in good to excellent condition, compared to 49 percent on average and 44 percent at this time last year. USDA projections released on Friday showed higher than expected production and ending stocks. Production was forecast at 16.5 million bales, up 10 percent from last month and 28 percent higher than a year ago. Globally, the higher U.S. production was partially offset by lower output from India, Australia and Brazil. Cotton export sales for the current 2013-14 marketing year were up 94 percent from the previous week and 16 percent higher than the prior four-week average. Sales of new-crop 2014-15 cotton were more than three times higher than both the previous week and the average. Exports were down 20 percent from the previous week and nine percent lower than the average, but still higher than the weekly total needed to meet USDA export projections for the marketing year.

Wheat prices were lower as increasing harvest-time supplies, large global inventories and weak demand continue to pressure the market. The latest USDA forecast shows 2014 all wheat production at 1.99 billion bushels, down one percent from last month and 11 percent lower than last year, but still on the high side of pre-report expectations. Texas winter wheat production is expected to total 55 million bushels, down 16 percent from a year ago. USDA also raised its projections for U.S. and world ending stocks. Wheat export sales were down 40 percent from the previous week, while shipments were up 18 percent.

Corn and grain sorghum prices were lower as the best corn condition ratings since 1999 maintained expectations for a large 2014 crop. In its monthly update, USDA lowered corn harvested acres and left yield unchanged. The resulting lower corn production was more than offset by lower feed usage and higher carry-in stocks, resulting in higher projected ending stocks. For grain sorghum, USDA increased projected harvested acres, feed use and exports, resulting in higher carry-over stocks. Corn old-crop export sales were up 25 percent from the previous week and 36 percent higher than the prior four-week average. New-crop sales were down 20 percent from a week earlier, but 71 percent higher than the average. Exports were up 33 percent from the previous week and up 15 percent from the average.

Parts of East and South Texas, the Panhandle and Trans-Pecos recorded one half inch or more of rain during the week. Scattered showers elsewhere in the state generally produced lesser amounts of rainfall. Last week’s U.S. Drought Monitor showed another small change in overall conditions in Texas, with 88 percent of the state rated in some degree of drought or abnormal dryness, up slightly from 87 percent a week ago. The areas in each drought category also remained near unchanged, as did the drought-free areas in East and Southwest Texas. Nationally, the portion of the country experiencing abnormal dryness or some degree of drought also increased by one percentage point to 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:		July 12, 2014	Week	Year

Feeder Steers	$/cwt	209.02	209.39	145.28
Fed Cattle	$/cwt	155.34	157.92	118.98
Slaughter Lambs	$/cwt	161.00	n/a	99.50
Slaughter Goats	$/cwt	206.00	n/a	169.00
Cotton	¢/lb.	69.00	72.00	82.00
Grain Sorghum	$/cwt	6.88	7.32	11.71
Wheat	$/bu.	6.26	6.86	7.12
Corn	$/bu.	4.38	4.63	7.03
Watermelons	$/ lb.	0.145	0.16	0.17

Futures Markets:

Feeder Cattle	$/cwt	210.37	217.62	150.12
Fed Cattle	$/cwt	149.12	155.00	121.85
Cotton	¢/lb.	68.74	76.22	85.13
Wheat	$/bu.	6.34	6.97	7.13
Corn	$/bu.	4.00	4.17	7.02
Lumber	$/MBF	336.70	337.40	296.50

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.