Texas Daily Ag Market Summary 9/24/14

Posted 10 years 65 days ago by

Feeder cattle mostly steady, few $4 to $9 higher; futures higher.
Fed cattle cash trade inactive; formula trades higher; futures mixed; beef prices lower.
Cotton cash prices higher; futures mostly higher.
Wheat, rice higher; corn grain sorghum, soybeans lower.
Crude oil higher; natural gas lower.
Stock markets lower.

Texas feeder cattle auctions quoted prices mostly steady compared to last week’s sale, with some as much as $4 lower on a portion of their offerings and one North Texas location $3-$9 higher. Feeder cattle futures were higher. The fed cattle cash trade remained inactive yesterday with asking prices hanging on at about $160-$161, up $1-$2 from last week’s average. Formula trades were higher. Wholesale boxed beef values were lower. Packers have reduced output this week in an attempt to shore up box prices, with 225,000 head of cattle harvested so far this week, down 5K from the first two days last week and 19K lower than a year ago. Fed cattle futures were mixed, from 30 cents higher to 70 cents lower. The lower beef prices are dragging down prices across the cattle complex, or at least putting a lid on potential gains.

The USDA NASS Cold Storage report released this week showed the total supply of beef, pork and chicken in cold storage 12% lower than a year ago and 8% lower than the five year average. Tight meat supplies should continue to support prices for some time to come. Beef stocks were down 20% from a year ago and 18% lower than the five year average.

Cotton cash prices were higher and futures were mostly higher, with only the nearby October contract posting a 2 cent decline. There was no fresh news to account for the strength, with the Chinese announcement of lower import quotas this marketing year still decidedly bearish. However, a somewhat weaker dollar may have helped and there are some concerns that rain may have damaged the quality of the crop in Texas.

Wheat prices were higher as buying interest picked up a little following the recent declines. Spring wheat harvest is also winding down and that is also taking a little harvest pressure off the market.

Corn and grain sorghum prices continued to slide lower in anticipation of a record large U.S. corn crop this year. Reports of some better than expected yields and notions that “big crop production forecasts get bigger” by the time all is said and done contributed to the continued weakness.

Stock markets skidded lower again yesterday “as a weak report on Europe's economy fueled more investor jitters about global growth.” A European manufacturing index fell to its lowest level so far this year, but a similar Chinese index came in slightly higher.

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.