Texas Daily Ag Market Summary 9/25/14

Posted 10 years 64 days ago by

Feeder cattle mostly steady, some $8 higher to $8 lower; futures higher.
Fed cattle cash trade inactive; formula trades steady; futures mostly higher; beef prices lower.
Cotton lower.
Grains and soybeans higher.
Crude oil and natural gas higher.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady with some locations as much as $8 higher and one up to $8 lower on feeder heifers. Reports noted that yearling cattle remain in short supply and prices for them are holding up better than for their short-weaned counterparts. Feeder cattle futures were higher. The fed cattle cash trade remained inactive yesterday with little change in asking prices and now word yet on packer bids. Formula trades held unchanged. Wholesale boxed beef values were lower. Estimated cattle harvest so far this week totals 344,000 head, up 2K from last week, but 23K lower than a year ago. Fed cattle futures were mostly higher, but ranged from 27 cents higher to 40 cents lower.

Cotton cash prices and futures were lower after the India Cotton Association said that production there would be a million bales higher than the current USDA projection. Markets were still adjusting to China’s announcement that it will slash its import quotas to World Trade Organization minimums so the news cause prices to fall, with cotton futures down 2% or more.

Wheat prices were higher yesterday as buying interest picked up again following recent declines. As seen often over the past several months, wheat prices slide lower until the drop stimulates commercial buying, which pushes prices a few cents higher, which then dries up interest and causes prices to slide back lower again. Much of the major U.S. winter wheat areas have received beneficial rains recently.

Corn and grain sorghum prices were higher with no specific reasons for the increase, other than lower prices stimulating a little buying. The trade is still expecting a record-large corn crop this year and early yield reports have supported that notion.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed continued improvement in conditions in Texas with “only” 76% of the state now in some degree of drought or abnormal dryness, down seven percentage points from a week ago. That’s the lowest percentage in drought since early January this year. Nationally, the total acreage experiencing abnormal dryness or some degree of drought remained unchanged at 45% percent of the contiguous states.

Stock markets closed higher yesterday after housing starts during August increased much more 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.