Texas Daily Ag Market Summary 9/2/14

Posted 10 years 87 days ago by

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

Texas feeder cattle auctions quoted prices mostly steady to $5 higher, with a few $2 lower and one location as much as $13 higher on more attractive offerings. Feeder cattle futures were higher. The fed cattle cash trade was $3 higher than the previous week’s average in relatively light pre-holiday trade. Formula trades were up modestly for the day, but still well below last week’s average. Wholesale boxed beef values were lower. Estimated cattle harvest for the week totaled 584,000 head, down 6K from a week earlier because of the holiday weekend and 49K below a year ago. Fed cattle futures were higher on the expiring August contract.

Cotton cash prices were unchanged on Friday, but futures were mostly lower. Demand remains strong for higher quality U.S. cotton, but large global supplies (mostly in China), prospects for a solid U.S. crop this year and news that China’s domestic support price will be nearly double current U.S. prices continued to pressure the market. USDA’s Corpus Christi cotton classing office has now graded 281,300 bales, up from only 82,800 bales at this time last year. The office reported that harvest was nearing completion in South Texas and the Lower Rio Grande Valley and that it had received its first samples from the Blacklands region between Austin and Dallas.

Dr. Carl Anderson, Texas A&M Professor Emeritus and one of the nation’s leading cotton economists, passed away Aug. 30 at the age of 83. Dr. Anderson was one of the pioneers in marketing education for producers and his work helped lay the foundation for A&M’s Master Marketer program. Dr. Parr Rosson, head of the TAMU Department of Agricultural Economics said, “Dr. Carl Anderson was an icon in the cotton industry. His more than four decades of service to the nation, the Texas A&M University System and the department of agricultural economics featured pioneering work in cotton marketing and producer risk management. Though retired for the past 10 years, Dr. Anderson was highly active, conducting numerous educational programs and research activities. His contributions to the Texas cotton industry and AgriLife Extension are unparalleled.”

Corn and grain sorghum prices were lower on Friday as favorable weather, soft demand and prospects for a record-large U.S. crop continued to pressure markets. Wheat prices followed corn lower on Friday. There was no fresh, wheat-specific news so prices drifted lower. Uncertainty about the situation in Ukraine and quality issues in Europe and the U.S. Northern Plains are still concerns, but are also old news that has already been priced into the market.

Stock markets closed higher on Friday. Several observers noted that mixed signals on global economies continue to puzzle investors. Brazil reported that its economy contracted by nearly 1% during the second quarter. In the U.S., the Commerce Department reported that household spending fell 0.1% in July, compared to expectations for a 0.1% increase. Personal income also 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.