Texas Daily Ag Market Summary 10/8/14

Posted 10 years 51 days ago by

Feeder cattle steady to $8 higher, few $18 higher; futures higher.
Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices higher.
Cotton higher.
Grains higher; soybeans lower.
Crude oil lower; natural gas higher.
Stock markets lower.

Texas feeder cattle auctions quoted prices mostly steady to $8 higher per cwt, with one location as much as $18 higher on yearling feeder steers. Feeder cattle futures were higher. The fed cattle cash trade remained inactive yesterday with asking prices at $165, but no word yet on packer bids. Formula sales were modestly higher. Wholesale boxed beef values were solidly higher for a second consecutive day. Estimated cattle harvest through Tuesday totaled 229,000 head, down 1K from last week and 11K lower than a year ago. Fed cattle futures were higher. Reports said that retailers have been active buyers over the past several days, mostly out of concerns that beef was set to rise even higher soon. That pushed wholesale beef prices which, in turn, pushed cattle prices higher.

Cotton cash prices and futures were higher without any fresh news to support the increase. It was likely speculative activity on the underlying futures contracts, but whatever the reason, cotton has now added 3.25 cents over the past week. There are also ongoing concerns about how the wet, cool weather on the Texas Plains is impacting quality and yields. Now, the remnants of a Pacific tropical storm are expected to hit West Texas, potentially causing more damage.

Wheat prices were higher in response to “new demand tied to the decline in price and some world crop problems.” Both Japan and Turkey were reportedly in the market for U.S. wheat. However, world supplies remain burdensome and planting progress in the U.S. is a little ahead of schedule. The same rains that are causing issues for cotton farmers on the Texas High Plains are also benefitting the wheat crop.

Corn and grain sorghum prices were higher on talk of harvest delays in the Corn Belt. This year’s corn crop is expected to be record-large, but is also a late maturing crop that could be impacted by unfavorable weather or a heavy frost.

Stock markets dropped another 1.5% yesterday, giving away all the previous day’s gains and then some. “Worries about global economic growth” caused most of the drop as traders worried that weakness in Europe could impact U.S. multi-national companies and offset their domestic earnings. The International Monetary Fund got the ball rolling downhill when it reduced its forecast for global growth, citing weakness in Europe and developing nations.

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.