Texas Daily Ag Market Summary 7/21/14

Posted 10 years 130 days ago by

Feeder cattle mostly steady to lower; futures higher.
Fed cattle cash trade 50 cents lower; futures higher; beef prices lower.
Cotton cash prices unchanged; futures modestly higher.
Grains and soybeans mostly lower.
Crude oil and natural gas lower.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $2 lower, with a few steady to $3 higher. Feeder cattle futures were higher. The fed cattle cash trade was quiet on Friday after trading about 50 cents lower per cwt Thursday on only a few hundred head. The Texas Cattle Feeders Association daily volume and price summary shows 60,700 head sold this week on a formula basis. USDA reported 10,300 head on Friday at $246.36 dressed (about $157 live). Wholesale boxed beef values were lower on Friday. Estimated cattle harvest for the week totaled 577,000 head, up 1K from a week earlier, but down 76K from a year ago. Cumulative cattle harvest for the year is running 6.8% lower than a year ago. Fed cattle futures were higher.

Cotton cash prices were unchanged, but futures were modestly higher. There was very little fresh news to move the market much in either direction.

Wheat prices were lower as attention shifted from the downing of the passenger jet over Ukraine back to the bearish fundamentals. A number of comments indicated that traders believe the futures market to be “oversold” and likely to move back higher if political tensions in the Black Sea region deepen.

Corn and grain sorghum prices were also lower as crop conditions continue to favor larger production this year. We won’t have another USDA production forecast until August 12 (the first of the season based on farmer interviews and field measurements) so weather, weekly crop condition reports and export news will determine market movement until then.

Stock markets closed higher on Friday “as worries over the conflicts in Eastern Europe and the Middle East receded.” Corporate news was mixed, with Google posting better than expected quarterly results and pharmaceutical AbbVie announcing a deal to buy competitor Shire, but GE reporting smaller than expected revenues. Economic news was mostly bearish. A major consumer sentiment index fell during July, compared to expectations for an increase, and the Conference Board’s index of leading economic indicators rose less 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.