Texas Daily Ag Market Summary 10/17/14

Posted 10 years 42 days ago by

Feeder cattle mostly steady to lower; futures sharply higher.
Fed cattle cash trade steady; formula trades $4 higher; futures higher; beef prices lower.
Cotton lower.
Grains and soybeans mostly higher, except rice futures lower.
Crude oil higher; natural gas lower.
Stock markets mostly modestly higher.

Texas cattle auctions quoted feeder and stocker prices mostly steady to $3 lower, with one location $2 higher on stockers. Feeder cattle futures were sharply higher, with most contract months up the $3 daily trading limit, after falling sharply the previous sessions. The fed cattle cash trade was steady, while formula trades were $4 higher per cwt on a dressed basis. Wholesale boxed beef values were lower. Estimated cattle harvest so far this week totals 445,000 head, down 5K from last week and 40K below a year ago. Fed cattle futures were higher. The steady cash trade and stronger beef values (at least until yesterday) pulled traders back into a market that is underpinned by tight cattle supplies.

Cotton cash prices and futures were lower after the Pakistan Cotton Crop Assessment Committee forecast their crop at 10.6 million bales, compared to USDA’s most recent forecast of 9.8 million. Pakistan the world’s fourth largest cotton producer behind China, India and the U.S and is also a major importer.

Wheat prices were higher due to planting delays and spillover from corn and soybeans. Continued dry conditions in Australia were also a concern.

Corn and grain sorghum prices were higher mostly because of harvest delays in the Corn Belt.

Stock markets were mostly modestly higher, with only the Dow posting a slight decline. Tech and small company stocks, which have taken the biggest beating over the past few days, experienced the biggest gains as bargain hunters returned to buy mode. Comments from the head of the St. Louis Federal Reserve Bank that the Fed should delay ending its bond purchases added to the more positive mood. U.S. economic news was mostly positive on Thursday. The Labor Department reported that new jobless claims fell last week, compared to expectations for an increase. A Federal Reserve industrial output index came in higher than expected. The Philadelphia Fed’s index of general business activity fell in October, but still came in higher than expected. On the down side, a homebuilder confidence index came in lower 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.