Texas Daily Ag Market Summary 8/18/14

Posted 10 years 103 days ago by

Feeder cattle mostly $2-$10 lower; futures higher.
Fed cattle cash trade $4 lower; formula trades $2 lower; futures higher; beef prices lower.
Cotton cash prices unchanged; futures lower.
Grains and soybeans higher.
Crude oil higher; natural gas lower.
Stock market indexes mixed.

Texas feeder cattle auctions quoted prices mostly $2-$10 lower per cwt, with feeder heifers quoted steady at one location. Texas direct feeder cattle sales were $3-$10 lower in a very light volume as many sellers chose to hold onto their cattle rather than let them go that much cheaper. Feeder cattle futures were higher. Fed cattle cash prices were more than $4 lower per cwt in very light trade, with only 281 head of USDA-confirmed sales. Formula trades were $2 lower on a dressed basis. Wholesale boxed beef values were lower. Estimated cattle harvest for the week totaled 577,000 head, up 4K from a week ago, but down 47K from last year. Year-to-date, cattle harvest is running 7.0% below a year ago. Fed cattle futures were higher, with nearby contracts posting smaller gains because of concerns about beef demand in the short term.

Cotton cash prices were unchanged, but futures were lower. Markets were still adjusting to a higher than expected cotton production forecast from USDA. There was a slight chance of beneficial rain on the Texas High Plains. Most of the area is still in some degree of drought so timely rains are needed to keep the dryland crop going.

Wheat prices were higher amid ongoing concerns about the quality of European wheat and tensions in Ukraine. Rain was forecast in some European wheat growing areas that could further reduce quality – good news for U.S. exporters with higher quality grain to offer. In addition, the situation in Ukraine remains very unsettled and could reduce exports from the region.

Corn and grain sorghum followed wheat and soybeans higher. There was not much corn-specific news. Some areas of the Corn Belt were expecting beneficial rains and weather forecasts generally favor a large corn crop. USDA FSA reported that 1.2 million acres of prevented corn plantings have been recorded so far, which likely factored into the price increase. However, those prevented plantings should already be, for the most part, worked into USDA acreage and production estimates.

Stock markets were mixed on Friday, with most major indexes near unchanged. U.S. economic data were mixed. The Labor Department reported that producer prices rose a little less than expected during June, indicating inflation is under control. A Federal Reserve report showed industrial production rose more than expected during July. Other news was more bearish. The New York Federal Reserve Bank’s regional manufacturing index declined much more than expected. A major consumer confidence index was lower than expected. And worries about the situation in Ukraine flared up again after that country’s military said it destroyed much of a column of armored vehicles entering from Russia.

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.