Texas Daily Ag Market Summary 7/25/14

Posted 10 years 126 days ago by

Feeder cattle steady to $10 higher; futures mixed.
Fed cattle cash trade $6-$7 higher; formula trades 50 cents lower; futures higher; beef prices higher to sharply higher.
Cotton lower.
Grains lower; soybeans higher.
Crude oil lower; natural gas higher.
Stock markets near unchanged.

Texas feeder cattle auctions quoted prices steady to as much as $10 higher per cwt. Feeder cattle futures were mixed, from 55 cents lower per cwt to 67 cents higher. The fed cattle cash trade jumped $6-$7 higher to $161-$162 per cwt. on 1,000 head of confirmed sales. That sets a new record high for Texas fed cattle, besting the old high-water mark set earlier this month by $4 per cwt. Formula trades were down 50 cents on 7,400 head. Wholesale boxed beef values were higher to sharply higher, with Select-grade offerings posting the largest increase. Both were new record highs. Estimated cattle harvest so far this week totals 458,000 head, down 1K from last week and 26K below a year ago. Fed cattle futures followed cash markets higher.

Beef export sales for the week totaled 10,800 metric tons (MT), up 20% from the previous week, but down 13% from the prior four-week average. Japan, Mexico and Canada were the top buyers. Export shipments of 14,600 MT were up 29% from a week earlier and 3% higher than the average. The leading destinations were Japan, South Korea and Mexico.

Cotton cash prices and futures were lower yesterday on predictions of a larger Indian crop and a forecast of slower global economic growth. The largest cotton trading firm in India said yesterday that it expects Indian cotton production to hit a record high as the late monsoon season caused farmers to shift from soybeans and peanuts to cotton. The increase would propel India to the top spot among world cotton producers and put more fiber on an already-overstuffed market. In addition, the International Monetary Fund lowered its forecast for world economic growth during 2014. Weekly export data were generally supportive, with strong new crop sales and adequate shipments. However, cotton exports sales for the old-crop 2013/14 marketing year were a negative 1,900 bales as cancellations outweighed new sales, compared to 20,900 bales sold last week and a four-week average of 31,700 bales. New crop sales totaled 371,400 bales, up 8% from the previous week and more than double the average. Turkey, Vietnam and China were the primary buyers. Export shipments of 72,000 bales were down 12% from a week earlier and down 44% from the average, but higher than the weekly average needed to meet USDA projections for the marketing year. Mexico, China and Turkey were the top destinations.

Wheat prices slipped lower again yesterday in spite of supportive export data. Wheat export sales totaled 443,200 MT, up 38% from the previous week and 12% above the prior four-week average. Japan, Nigeria and Singapore were the primary buyers. Shipments of 551,700 MT were up 32% from a week earlier and up 27% from the average. Brazil, Indonesia and Taiwan were the leading destinations. However, world weather remains favorable and the conflict in Ukraine does not seem to have pushed a lot of export business to the U.S. In addition, there were reports that an Argentine port reopened, which could boost competition from South American grain.

Corn and grain sorghum prices were also lower. In spite of bullish export data. Old crop sales were lower, but new crop sales surged and shipments rebounded from the previous week. Corn old-crop export sales for the week totaled 291,500 MT, down 49% from the previous week and down 21% from the prior four-week average. The top buyers were Japan, Spain and South Korea. New crop corn sales of 1,143,400 MT were more than double the previous week and nearly three times the average. Unknown destinations, Japan and Costa Rica were the primary buyers. Shipments totaling 992,500 MT were up 9% from a week earlier, but down 4% from the average. The leading destinations were Japan, South Korea and Mexico.

Stock markets closed near unchanged yesterday following a round of mixed economic and corporate data. The Labor Department reported that new unemployment claims dropped last week to their lowest level since February 2006. On the down side, the Commerce Department reported that new home sales dropped sharply during June, and also revised their May estimate lower. Facebook, Ford and Under Armour reported better than expected quarterly results, while GM and Caterpillar came up short.

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.