Texas Daily Ag Market Summary 10/29/14

Posted 10 years 30 days ago by

Feeder cattle steady to $6 higher; futures lower.
Fed cattle cash trade inactive; formula trades $2 higher; futures lower; beef prices higher.
Cotton higher.
Grains and soybeans mostly higher.
Crude oil and natural gas higher.
Stock markets higher.

Texas feeder cattle auctions quoted prices steady to $6 higher per cwt. Futures were lower, with no specific reasons for the decline. Market fundaments remain supportive as nothing has changed with the tight supply/good demand picture, but it’s just hard to keep setting record highs every day. Traders get nervous and take their profits. The fed cattle cash trade was inactive through Tuesday, while formula prices were $2 higher. Reports have initial asking prices this week at $172-$173, compared to last week’s record-high average of $170. Wholesale boxed beef values were higher. Estimated cattle harvest through Tuesday totaled 227,000 head, down 2K from last week and 19K lower than a year ago. Fed cattle futures followed feeder cattle lower, but the higher beef values limited the decline.

Cotton cash prices and futures were higher, mostly due to tight supplies of cotton that is certified for delivery to satisfy futures contracts. Producers are reluctant to sell at current prices, which are down 15%-20% from a year ago and that has restricted supplies of available cotton.

Wheat prices followed other crops higher, with no real changes in the supply/demand fundamentals and no significant wheat-specific news for the day.

Corn and grain sorghum prices were higher following reports that China intends to build-up its corn reserves. However, its continued rejection of MIR-162 (Viptera) GMO corn from the U.S. has severely limited market access. On the other hand, grain industry leaders also noted that those rejections have been largely offset by renewed business with traditional grain customers and developing corn markets in Egypt and Southeast Asia.

Stock markets were higher with the Dow closing above 17,000 points for the first time since Oct. 3. A major consumer confidence index increased more than expected to its highest level in seven tears. The Richmond Federal Reserve Bank’s regional manufacturing index came in much higher than expected. However, a leading home price index increased less than anticipated.

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.