Texas Daily Ag Market Summary 10/6/14

Posted 10 years 53 days ago by

Feeder cattle mostly $2-$7 higher; futures mostly higher.
Fed cattle cash trade $3 higher; formula trades lower; futures lower; beef prices lower.
Cotton higher.
Grains higher; soybeans lower.
Crude oil and lower; natural gas higher.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly $2-$7 higher, with some steady and a few as much as $14 higher. Feeder cattle futures were mostly higher, with only the front-month October contract posting a decline. The fed cattle cash trade was $3 higher than the last established market two weeks ago, but formula trades dipped lower. Wholesale beef prices were also lower. Estimated cattle harvest for the week totaled 582,000 head, up 10K from the previous week, but 57K below a year ago. For the year, cattle harvest is running 7.1% below a year ago. Fed cattle futures were lower.

Cotton cash prices and futures were higher as current price levels stimulated a little buying interest. Higher stock markets and positive economic news were also supportive. Reports have cotton harvest complete in the Lower Valley and much of South Texas, and nearing completion along the Upper Coast. Some Valley gins have shut down for the season.

Wheat prices were higher on Friday. The large, burdensome world supplies and weak demand remain bearish, but higher outside markets and reports of some winter wheat planting delays in the Southern Plains gave markets a modest boost.

Corn and grain sorghum prices were higher as rains slowed harvest in parts of the Corn Belt. Forecasts included a chance for a hard freeze in some locations which could have more of an impact than usual because of the later development of this year’s crop. However, prospects still favor a record-large corn crop this year.

Stock markets closed higher on Friday after a much better than expected employment report for September, but the news was offset somewhat by concerns that the improving economic picture could cause the Federal Reserve to begin raising interest rates. The Labor Department reported that the economy added 248,000 jobs during September, much higher than the 218,000 expected. The unemployment rate dropped to 5.9%, the lowest since mid-2008.

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.