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Oct
31
2014

Texas Daily Ag Market Summary 10/31/14

Posted 9 years 174 days ago by

  • Feeder cattle mostly steady to $5 higher, few $4 lower; futures higher.
  • Fed cattle cash trade inactive; formula trades $6 higher; futures higher; beef prices lower.
  • Cotton lower.
  • Grains and soybeans lower.
  • Crude oil lower; natural gas higher.
  • Stock markets solidly higher.



Texas feeder cattle auctions quoted prices mostly steady to $5 higher, with a few heavy-weight feeders steady to $4 lower. Sources noted that the heavy fall run of feeder/stocker cattle is likely over, which means buyers will once again be competing for smaller numbers of cattle. Feeder cattle futures were higher, mostly because of a drop in corn futures. The fed cattle cash trade remained quiet across all major U.S. cattle feeding regions yesterday, but formula trades were $6 higher. Wholesale boxed beef values were modestly lower. Estimated cattle harvest through Thursday totaled 439,000 head, down 10K from last week and 46K below a year ago. Beef exports for the week totaled 20,100 metric tons, more than 2.5 times the previous week and nearly double the prior four week average. Japan, Hong Kong and the Philippines were the leading buyers. Export shipments of 13,000 MT were down 11% from a week earlier and 8% lower than the average. Japan, Hong Kong and South Korea were the primary destinations.

Cotton cash prices and futures were lower, mostly because of news that Turkey has launched an investigation into whether U.S. cotton has been dumped on their market. Turkey has been our largest cotton export customer so far this year with 21% of total sales. Export sales were supportive, but shipments were disappointing. Export commitments – shipments plus outstanding sales – account for 61% of USDA projections for the marketing year, compared to 49% at this time a year ago. Cotton export sales totaled 185,400 bales, more than double the previous week and nearly double the prior four week average, but still less than the weekly average needed to meet USDA projections for the marketing year. Indonesia, Mexico and Thailand were the top buyers. Exports of 70,800 bales were down 28% from the previous week and 12% below the average, with China, Mexico and Turkey the leading destinations.

Wheat prices followed row crops lower, with good winter wheat planting conditions in much of the country, a stronger dollar and weak export shipments contributing to the decline. Wheat export sales came in higher than expected at 444,900 MT, up 49% from the previous week, but down 5% from the prior four week average. Japan, Mexico and Brazil were the primary buyers. Export shipments of 272,400 MT were down 37% from a week earlier and 49% lower than the average. Mexico, Nigeria and Brazil were the top destinations.

Corn and grain sorghum prices were lower due to a stronger dollar, lower crude oil futures, good harvest weather in much of the Midwest and good planting weather in South America. Export sales numbers were disappointing, but shipments were stronger. Corn export sales totaled 489,800 MT, down 53% from the previous week and 55% below the prior four week average. South Korea, Peru and Mexico were the leading buyers. Exports of 829,500 MT were up 23% from a week ago and 4% higher than the average. Mexico, South Korea and Japan were the leading primary destinations.

Stock markets closed with solid gains across all major indexes, in spite of a trading glitch at the NYSE that required it to do business for a while in the afternoon from a Chicago-based disaster recovery center. Better than expected quarterly results from Visa and Mastercard helped push markets higher. Some tech stocks declined after a pair of chip makers reported weaker than expected earnings. The Commerce Department reported that GDP rose by 3.5% during the third quarter, beating expectations for a 3.1% increase.


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.







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