Texas Daily Ag Market Summary 8/19/14

Posted 10 years 101 days ago by

Feeder cattle mostly steady to $10 lower; futures higher.
Fed cattle cash trade inactive; formula trades steady; futures higher; beef prices lower.
Cotton lower.
Grains lower; soybeans higher.
Crude oil lower; natural gas higher.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to as much as $10 lower per cwt, though one location was steady to $5 higher. However, at the Oklahoma City National Stockyards on Monday, prices turned around, with feeder cattle steady to $4 higher and calves $4-$6 higher. 5-weight steers set a new record high $266 per cwt. OKC is a benchmark sale and the basis for many forward contracts so a price rebound there should be bullish for markets throughout the region. Feeder cattle futures were higher. The fed cattle cash trade was quiet on Monday after idling though last week, when only 500 head of cash sales were confirmed at $5 lower prices. Initial asking prices appear to be around $157-$158, up $2-$3 from last week’s average. Formula trades were steady on 12,300 head. Wholesale boxed beef values were lower. Estimated cattle harvest on Monday was 108,000 head, down 6K from a week ago and 11K below last year. Fed cattle futures were higher.

Cotton cash prices and futures were lower in the absence of any fresh bullish news. Harvest is under way in South Texas and conditions across the Cotton Belt are still favorable for a large crop. After the markets closed yesterday, USDA NASS reported that 50% of the U.S. cotton crop was rated in good to excellent condition, down 2 points from last week, but still better than a year ago. Significantly, only 16% of the crop is rated poor to very poor, with much of that here in Texas and in Georgia. Bolls are opening on 12% of the acreage Belt-wide, equal to the 5-year average. In Texas, bolls are opening on 16% of the acreage and 4% of the crop has been harvested. Texas cotton was rated in mostly fair to good condition.

Wheat prices were lower yesterday as tensions in Ukraine eased a little and rain on the U.S. Southern Plains boosted prospects for the 2014/15 crop. Weekly export inspections were up 8% from a week ago, but down 35% from last year. Texas growers are making preparations to seed this fall’s winter wheat crop.

Corn and grain sorghum prices were lower as there was little new information to sustain Friday’s gains. Forecasts for a record-large U.S. corn crop and higher carryover stocks continue to loom over the market. Weekly export inspections were encouraging, up 7% from a week ago and more than 5 times higher than the anemic shipments a year ago. USDA NASS reported that the U.S. corn crop was in 72% good to excellent condition, down one point from last week, as expected, but better than the 61% at this time last year. 70% of the acreage is in dough stage and 22% in dent, both higher than average. In Texas, corn harvest is 32% complete, well behind the normal 47%. Corn was rated in mostly good to fair condition. Texas grain sorghum harvest is 53% complete statewide, slightly better than the average.

Stock markets closed higher yesterday as investors turned their attention from easing tensions in Ukraine to this week’s annual meeting of central bankers. Foreign ministers from Germany, Russia, Ukraine and France met over the weekend in preliminary cease-fire talks. Federal Reserve Chairwoman Janet Yellen and the president of the European Central Bank are scheduled to speak to a central bank summit on Friday. Investors will be looking for signs that easy money policies will continue in spite of improving economic benchmarks here and in Europe.

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.