Texas Daily Ag Market Summary 10/10/14

Posted 10 years 49 days ago by

Feeder cattle mostly steady to $3 higher, few $5-$10 higher; futures lower.
Fed cattle cash trade inactive; formula trades $2 higher; futures lower; beef prices higher.
Cotton lower.
Corn, grain sorghum, soybeans higher; wheat, rice lower.
Crude oil and natural gas lower.
Stock markets sharply lower.

The Texas A&M Institute for Renewable Natural Resources released an updated “Texas Land Trends” report yesterday showing that Texas lost 1.1 million acres of privately owned farms, ranches and forests in the 15 years from 1997 to 2012, “continuing the trend of rural land conversion and fragmentation in Texas.” The report showed that these lands now account for 83% of the state’s area, down one percentage point from the 2007 report. “More than 54 percent of this land conversion was related to development associated with population expansion in the state’s 25 highest growth rate counties. During this period, approximately 590,000 acres were lost from the agricultural land base in these counties.” Click here for additional report highlights.

Texas feeder cattle auctions quoted prices mostly steady to $3 higher per cwt, with one location $5-$10 higher. Feeder cattle futures were lower. The fed cattle cash trade remained inactive yesterday, while formula trades were $2 higher. Wholesale boxed beef values were higher, though the rate of increase slowed down. Estimated cattle harvest through Thursday totaled 450,000 head, down 6K from last week and 30K below a year ago. Fed cattle futures were lower. The drop in equity markets spilled over into commodities and had cattle down their daily trading limit at one point due to concerns about impacts on beef demand. Reports said that packers used the drop in futures as an opportunity to come in lower on their bids for cattle, but found most sellers unwilling to make a deal. A few head did sell in Kansas and Iowa at $164, up $2 from last week, but down $3 from initial asking prices.

Beef export sales for the week totaled 14,100 metric tons (MT), up 18% from the previous week and 5% higher than the prior four-week average. The primary buyers were Canada, South Korea and Japan. Another 3,200 MT sold for delivery in 2015. Export shipments of 14,000 MT were up 2% from the previous week and 5% above the average. The leading destinations were Japan, Hong Kong and South Korea.

Cotton prices were lower following a disappointing export report showing both sales and shipments well below the weekly averages needed to meet USDA projections for the marketing year. Cotton export sales totaled 68,500 bales, down 70% from the previous week and 35% below the prior four-week average. China, South Korea and Turkey were the top buyers. Exports of 81,300 bales were up 5% from the previous week, but down 8% from the average. The leading destinations were Mexico, China and Turkey.

Wheat prices were lower, mostly due to weaker than expected export data and expectations that USDA will raise its ending stocks estimate in the supply/demand report to be released later this morning. Wheat export sales for the week totaling 372,400 MT were down 50% from a week earlier and 30% lower than the prior four-week average. The Philippines, Taiwan and Egypt were the primary buyers. Export shipments of 668,500 MT were up 21% from the previous week and 14% higher than the average. Japan, Brazil and Mexico were the top destinations.

Corn and grain sorghum prices were higher mostly due to harvest delays in parts of the Corn Belt. Export data were also supportive. Corn export sales totaled 784,800 MT, up 23% from the previous week, with Japan, Peru and Columbia the leading buyers. Export shipments of 978,100 were up 58% from a week earlier. The top destinations were Mexico, Japan and Columbia.

Stock markets closed sharply lower as growing concerns about global economic growth led investors to shed riskier investments. No specific news caused the decline. New unemployment claims dropped more than expected last week to 287,000 and continuing claims also declined.

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.