Texas Weekly Ag Market Recap 8/19/14

Posted 10 years 102 days ago by

AUSTIN – (August 18, 2014) For the week ending August 16, 2014, feeder cattle prices quoted by Texas auctions were mostly steady to $12 lower per hundredweight (cwt), with a few steady to $5 higher on a portion of their offerings. Texas direct feeder cattle sales were $3 to $10 lower. Fed cattle cash prices were nearly $5 lower per cwt on a very light trade volume. Wholesale beef values were $4 to $5 lower. Cattle prices declined amid ongoing concerns about lower demand in the short term. However, they remain at historically-high levels, with supportive supply-demand fundamentals over the long term. Beef export sales for the week were down 21 percent from the previous week and down 23 percent from the prior four-week average. Export shipments were down six percent from a week earlier, but up two percent from a year ago.

Cotton prices were lower after the USDA production forecast and projected end of year stocks came in higher than expected. The resulting stocks-to-use ratio is the highest in seven years. Last week’s USDA NASS Crop Progress report showed U.S. cotton rated 52 percent in good to excellent condition, down one point from a week ago. Another 34 percent was rated fair. Eighty-three percent of the acreage was setting bolls and seven percent had bolls opening. In Texas, the crop was rated 37 percent good to excellent, also down a point from last week, with another 41 percent rated fair. Both the Texas and U.S. crops are progressing at a near-normal pace. Harvest was reportedly getting started in South Texas and the Coastal Bend. Export data came in on the low end of expectations. Cotton export sales for the first full week of the 2014-15 marketing year totaled 176,400 bales and export shipments were 94,500 bales.

Wheat prices were again lower for the week as large world supplies and weak demand continue to pressure the market. While hoped for, increases in U.S. export sales due to turmoil in Ukraine and quality issues in Europe have not yet materialized. USDA NASS reported that the U.S. winter wheat harvest was 95 percent complete, ahead of the normal 90 percent for this time of the year. Spring wheat is six percent harvested and rated in mostly good condition. Texas growers are preparing for fall seeding of the 2014-15 crop. Export data was market-neutral with lower sales, but higher shipments. Wheat export sales were down 43 percent from the previous week and 37 percent from the prior four-week average. Exports were up 21 percent from a week earlier and 11 percent higher than the average.

Corn and grain sorghum prices were higher after USDA production and stocks data came in at or below expectations. Even so, weather conditions still favor a large crop, with corn production expected to reach a record high 14.0 billion bushels. USDA NASS reported that 73 percent of the national corn crop was rated in good to excellent condition, up one point from a week ago. In Texas, 65 percent of the corn acreage was rated in good to excellent condition, a two point improvement over last week. Half the acreage is mature and 17 percent has been harvested. U.S. grain sorghum was 30 percent mature, with the crop rated in mostly good to fair condition. Texas grain sorghum was 82 percent mature and 46 percent harvested, as well as rated in mostly good to fair condition. Corn old-crop export sales were a net negative as cancellations outweighed new sales. New-crop sales for the 2014-15 marketing year were up four percent from the previous week, but 10 percent lower than the prior four-week. Shipments were down 33 percent from the previous week and 25 percent from the previous four-week average.

Most of the state recorded rainfall last week, with more than one inch of rain reported in scattered locations statewide. Last week’s U.S. Drought Monitor again showed very little change in conditions across Texas, with 83 percent of the state rated in some degree of drought or abnormal dryness, unchanged from a week ago. The percentages in each drought category also changed very little. Parts of East and Southwest Texas and a small area in the Trans-Pecos remained drought-free. Nationally, the total area experiencing abnormal dryness or some degree of drought remained declined one point to 47 percent of the contiguous states.

Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

		Week Ending	Previous	Previous
Texas Cash Markets:		Aug. 16, 2014	Week	Year

Feeder Steers	$/cwt	211.54	218.12	151.02
Fed Cattle	$/cwt	154.57	159.33	122.95
Slaughter Lambs	$/cwt	162.00	160.50	87.50
Slaughter Goats	$/cwt	210.00	211.00	162.00
Cotton	¢/lb.	62.00	63.25	90.00
Grain Sorghum	$/cwt	6.41	6.17	9.98
Wheat	$/bu.	6.07	6.17	7.01
Corn	$/bu.	3.94	3.81	6.17
Watermelons	$/ lb.	0.11	0.12	0.135
Pine Saw Logs	$/MBF	204.81	213.12	177.27
Pine Pulpwood	$/ton	8.52	7.56	6.18

Futures Markets:

Feeder Cattle	$/cwt	217.22	215.32	154.77
Fed Cattle	$/cwt	150.60	152.55	123.90
Cotton	¢/lb.	63.60	63.81	93.40
Wheat	$/bu.	6.20	6.29	6.98
Corn	$/bu.	3.66	3.52	4.74
Lumber	$/MBF	345.40	344.90	318.60

All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.” MBF = thousand board feet. For additional information, contact TDA at (800) 835-5832 or visit our website, www.TexasAgriculture.gov.

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.