Texas Weekly Ag Market Recap 10/27/14

Posted 10 years 32 days ago by

AUSTIN – (Oct. 27, 2014) For the week ending Oct. 25, 2014, feeder cattle prices quoted by Texas auctions were uneven, with some $5 lower per hundredweight (cwt) and others up to $8 higher. Texas direct feeder cattle sales were weak to $4 lower early in the week and mostly steady to $5 higher later in the week. Fed cattle cash sales were up $6 to a record-high of $170 per cwt. Very tight cattle supplies continue to support markets. Wholesale beef values were lower. Beef export sales for the week were down five percent from the previous week and 34 percent lower than the prior four-week average. Export shipments were up two percent from a week earlier and five percent higher than the average.

Cotton prices were unchanged as the positive impacts of a stronger Chinese economy, lower Chinese production and a higher U.S. stock market were offset by good harvest progress, weak export data and expectations for a larger U.S. crop. USDA NASS reported that the U.S. cotton crop was 29 percent harvested, only slightly behind the normal 31 percent. Additionally, 47 percent of the acreage was rated in good to excellent condition, unchanged from a week ago. Texas cotton is 20 percent harvested, down one point from the average. The crop is in 33 percent good to excellent condition and 41 percent was rated fair, both unchanged from last week. Cotton export sales and shipments both came in lower than the weekly averages needed to meet USDA projections for the marketing year. Cotton export sales were up more than 11 times higher than the previous week, but down 31 percent from the prior four-week average. Exports were up 49 percent from a week earlier and 26 percent higher than the average.

Wheat prices were lower due to good planting progress, beneficial rains, weak export data and burdensome world supplies. The U.S. winter wheat crop was 76 percent planted, down only one point from the average. In Texas, 63 percent of the acreage has been planted, three points higher than the average. USDA has not started publishing wheat crop condition estimates yet this season. Weekly export data came in well below expectations, with sales down 34 percent from the previous week and 39 percent lower than the prior four-week average. Export shipments were down 11 percent from a week earlier and 21 percent lower than the prior four-week average.

Corn and grain sorghum prices were higher due to harvest delays in parts of the Corn Belt and supportive export data. However, conditions still favor a record-large corn crop, which has limited potential gains. The U.S. corn crop was 31 percent harvested, well behind the normal 53 percent by this date, but not much slower than last year’s 38 percent. The remaining crop was rated in 74 percent good to excellent condition, unchanged from a week ago. In Texas, corn is 70 percent harvested compared to an average of 82 percent, with 67 percent of the acreage rated in good to excellent condition, the same as last week. The Texas grain sorghum harvest is 74 percent complete, ahead of the normal 70 percent, with 58 percent of the crop rated good to excellent. Corn export sales and shipments were down from both the previous week and the average, but volumes were still high enough to provide some market support. Corn export sales were down 46 percent from last week’s total and one percent lower than the prior four-week average. Exports were down 25 percent from the previous week and 24 percent lower than the average.

More than one half inch of rain fell in scattered locations in South and West Texas, as well as the Panhandle. Other areas of the state received little or no rainfall during the week. Last week’s U.S. Drought Monitor showed a modest decline in conditions in Texas with 70 percent of the state now in some degree of drought or abnormal dryness, up one percentage point from a week ago. Even so, conditions are much better now than they were a year ago, when 87 percent of the state was suffering from drought. There is a pocket of extreme drought west of San Antonio and a larger area suffering under extreme and exceptional drought that runs from west of Fort Worth through the Panhandle to Dalhart.

Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

		Week Ending	Previous	Previous
Texas Cash Markets:		Oct. 25, 2014	Week	Year

Feeder Steers	$/cwt	234.03	234.69	178.95
Fed Cattle	$/cwt	170.00	164.00	132.30
Slaughter Lambs	$/cwt	222.50	200.00	149.00
Slaughter Goats	$/cwt	245.00	235.00	191.00
Cotton	¢/lb.	63.25	63.25	79.50
Grain Sorghum	$/cwt	6.22	6.08	7.55
Wheat	$/bu.	5.70	5.75	7.62
Corn	$/bu.	4.06	4.00	4.91
Grapefruit	$/carton	19.20	n/a	19.30

Futures Markets:

Feeder Cattle	$/cwt	237.90	238.45	165.55
Fed Cattle	$/cwt	168.25	165.05	132.57
Cotton	¢/lb.	63.81	63.00	79.08
Wheat	$/bu.	5.94	6.02	7.59
Corn	$/bu.	3.53	3.48	4.40
Lumber	$/MBF	336.60	334.60	361.40

All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.” MBF = thousand board feet. For additional information, contact TDA at (800) 835-5832 or visit our website, www.TexasAgriculture.gov.

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.