Texas Daily Ag Market Summary 7/16/14

Posted 10 years 135 days ago by

Feeder cattle mostly steady to $6 lower; futures higher.
Fed cattle cash trade inactive; futures higher; beef prices lower.
Cotton cash unchanged; futures lower.
Grains and soybeans lower.
Crude oil and natural gas lower.
Stock markets mostly modestly lower.

Texas feeder cattle auctions quoted prices mostly steady to $6 lower per cwt, though one location was steady to $2 higher on calves weighing less than 500 pounds. A couple locations noted that buyers were a little less enthusiastic since the declines in cattle futures on Friday and Monday. However, feeder cattle futures turned back higher yesterday as the lower prices renewed buying interest. Fed cattle cash markets were inactive yesterday with feedlot asking prices still at $158 per cwt (up $2.50) on smaller to unchanged show lists. A few packer bids at $152 were reported in Texas. Wholesale boxed beef values slipped a little lower again yesterday. Estimated cattle harvest so far this week totals 228,000 head, down 1K from this time last week and down 14K from a year ago. Fed cattle futures were higher. Reports noted that the cooler weather forecast this week for the U.S. Plains could help boost cattle performance.

Cotton cash prices were unchanged, but futures were lower amid an absence of significant threats to this year’s crop. Crop condition ratings reported by USDA on Monday did slip a little, but remain better than average and scattered showers continue to benefit the crop. However, the crop is developing somewhat slower than normal and the cooler temperatures mentioned above won’t help as cotton needs more heat units to push it along.

Wheat prices fell lower again yesterday as ample world supplies and weak export demand for U.S. wheat continue to dominate markets. U.S. wheat production will be lower this year, but even that is adding inventory to already-burdensome supplies.

Corn and grain sorghum prices were also lower after USDA reported higher crop condition ratings and good developmental progress in its Monday report. Wire service reported noted, “There’s a lot of talk about a bigger yield estimate in August’s USDA numbers, but there’s still a lot of uncertainty at this point. Past that – there was just no fresh news and the fundamentals look negative.” Technical traders are calling the market oversold and due a correction, but have so far been unwilling to jump in with buy orders because of the fundamentals. Still, buying interest will pick up as prices continue to drop.

Stock markets were mostly modestly lower yesterday with only the blue-chip D-J Industrial Average posting a very modest gain. Stocks were higher early in the session after Federal Reserve Chairwoman Yellen said that “given the economic situation…,we judge that a high degree of monetary policy accommodation remains appropriate.” Most traders expect the Fed to put off any significant action until well into 2015. However, in notes released after her testimony, Yellen said that there are concerns about price valuations for some stocks, especially bio-tech and social media companies. Reports noted that fund managers were already backing away from smaller company stocks due to those high valuations, but the comments still sent the shares lower.

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.