Texas Daily Ag Market Summary 10/7/14

Posted 10 years 52 days ago by

Feeder cattle steady to $12 higher; futures lower.
Fed cattle cash trade inactive; formula trades steady; futures higher; beef prices higher.
Cotton higher.
Grains and soybeans higher.
Crude oil higher; natural gas lower.
Stock markets modestly lower.

Texas feeder cattle auctions quoted prices steady to $2 higher at some locations and $2-$12 higher at others. Oklahoma City was mostly $5-$15 higher. Last week’s higher feeder cattle futures helped push cash prices higher. Demand remains strong for the limited feeder supply, especially for stocker cattle to put out on winter grazing. Feeder cattle futures were lower. The fed cattle cash trade was inactive on Monday while the formula trade, mostly activity from Friday afternoon, was steady. There were a few reports of cash asking prices at $164-$165, up $2-$3 from last week’s average. Wholesale beef prices were sharply higher, up $3 per cwt for both Choice and Select-grade offerings. Estimated cattle harvest on Monday totaled 114,000 head, down 1K from last week and 2K from a year ago. Fed cattle futures were higher. The higher beef prices were supportive, but might not have much impact on cattle prices as packers try shore up their weak margins.

Cotton cash prices and futures were higher, mostly due to a weaker dollar and concerns about how cool, wet weather on the Texas Plains will impact quality. Hard-lock bolls, boll rot and seed sprouting in bolls have raised concerns about quality and yields, but the extent of the damage is still largely unknown. In addition, the recent rains have caused some regrowth in many otherwise mature cotton plants. That and the cool temperatures might make defoliation difficult and could also affect quality. After markets closed yesterday, USDA NASS reported that 47% of the U.S. cotton crop was rated in good to excellent condition, down two points from last week. Harvest was completed on 15% of the acreage, higher than at this time last year, but below the 18% average for this date. Texas cotton was rated 32% good to excellent, down one point from a week ago. The Texas crop is 19% harvested, compared to 17% on average.

Wheat prices were higher due to the softer dollar, speculative buying on the underlying futures contract and decent export inspections data. Inspections totaled 650,600 metric tons, up 7% from the previous week, but down 16% from the same week a year ago. The U.S. winter wheat crop is 43% planted, well ahead of both last year and the five-year average. In Texas 54% of the crop is seeded, compared to 49% on average. USDA has not yet started to gather wheat condition data.

Corn and grain sorghum prices were higher following reports that wet weather in the Corn Belt and Southern Plains has slowed harvest progress. Export inspections were a solid 883,500 metric tons, up 47% from a week earlier and up 37% from a year ago. USDA NASS reported that 74% of the U.S. corn crop was rated in good to excellent condition, unchanged from a week ago. Seventeen percent of the crop is harvested, just slightly more than half the 32% average. Texas corn was rated in 67% good to excellent condition, also unchanged from last week, with 69% of the crop harvested, compared to the average 74%. U.S. grain sorghum was rated in 57% good to excellent condition with 37% of the acreage harvested, one point behind the average. Texas grain sorghum was ahead of average at 73% complete with 60% of the remaining crop rated in good to excellent condition.

Stock markets were modestly lower, with the decline generally attributed to risk aversion rather than any particular news. As with last week’s declines, higher risk small company and tech stocks declined the most.

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.