Texas Daily Ag Market Summary 7/18/14

Posted 10 years 133 days ago by

Feeder cattle mostly steady to lower, few higher; futures higher.
Fed cattle cash trade 50 cents lower; futures higher; Choice beef prices lower; Select higher.
Cotton cash prices unchanged; futures mostly slightly higher.
Grains higher; soybeans lower.
Crude oil higher; natural gas lower.
Stock markets lower.

Texas feeder cattle auctions quoted prices mostly steady to $6 lower, though a couple locations were as much as $12 lower and a few steady to $5 higher. Feeder cattle futures were higher yesterday and the volatility is spilling over to the cash market. At the least, buyers are looking at their purchases with a more critical eye and are more conservative with their bids. Texas fed cattle cash prices dipped about 50 cents lower per cwt compared to last week’s average in very light trade. We should see additional confirmed sales later today, but this week’s market is likely set and prices will probably hang pretty close to $155. Wholesale boxed beef values were lower for Choice offerings, but higher for Select-grade cuts. Weekly estimated cattle harvest through Thursday totaled 459,000 head, up 3K from last week, but down 33K from a year ago. Fed cattle futures were higher.

Beef export sales for the week totaled 9,000 metric tons (MT), down 50% from the previous week and down 37% from the prior four-week average. Japan, Mexico and South Korea were the leading buyers. Export shipments of 11,400 MT were down 27% from a week earlier and 24% less than the average. The primary destinations were Japan, Mexico and Hong Kong.

Cotton cash prices were unchanged, but futures were mostly modestly higher as buying interest picked up a little following recent price declines. Export data were mixed. Old-crop sales and shipments were somewhat disappointing, but new crop sales exceeded expectations. Cotton export sales for the current marketing year of 20,900 bales were down 69% from the previous week and 68% from the prior four-week average. Vietnam, Turkey and Bangladesh were the top buyers. Sales of new-crop cotton for the next marketing year totaled 342,800 bales, up 69% from the previous week and more than three times the average. The leading buyers were Turkey, Mexico and Vietnam. Exports totaling 81,400 bales were down 40% from the previous week and 41% from the prior four-week average. China, Mexico and Turkey were the primary destinations.

Wheat prices were higher, mostly due to renewed concerns about exports from the Black Sea regions after a Malaysian Airlines passenger jet was shot down near the Ukraine-Russia border. Even so, large world supplies and reports of higher production in India and potentially lower imports by Egypt kept a lid on gains. Export data were mostly bearish. Wheat export sales for the week totaled 320,700 MT, down 5% from the previous week and 22% lower than the prior four-week average. The top buyers were Japan, China and Thailand. Exports of 417,400 MT were up 6% from the previous week, but down 9% from the average. Nigeria, Mexico and Brazil were the primary destinations.

Corn prices were reported 1-2 cents per bushel higher, with a few quotes as much as 10 cents higher. Grain sorghum was mostly unchanged to 3 cents higher per cwt, though the USDA Market News average dipped lower due to a shift in the lower end of the reported price range. Corn export sales were supportive, but shipments were somewhat disappointing. Corn export sales for the old-crop 2013/14 marketing year totaled 573,700 MT, up 58% from a week earlier and more the double the prior four-week average. Japan, Columbia and Taiwan were the leading buyers. Sales of new-crop corn, at 495,000 MT, were up 30% from the previous week and up 70% from the average. The top buyers were unknown destinations, Japan and Mexico. Export shipments of 907,900 MT were down 25% from the previous week and 16% below the average. Japan, Mexico and South Korea were the primary destinations. Grain sorghum posted net sales of 292,000 MT for the current marketing year and 109,500 MT for next delivery next year. Shipments totaled 143,100 MT, all to China.

Stock markets closed lower yesterday mostly because of worries over renewed tensions between Ukraine and Russia after a Malaysian Airlines passenger jet was shot down near the Ukraine-Russia border. U.S. economic data were mostly bullish. The Labor Department reported that new unemployment claims fell more than expected last week and a mid-Atlantic manufacturing index came in at its highest level in three years. On the down side, U.S. housing starts fell last month to their lowest since last September.

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.