Texas Daily Ag Market Summary 11/3/14

Posted 10 years 25 days ago by

Feeder cattle mostly steady to $4 higher, few $2 lower; futures lower.
Fed cattle cash trade $2 lower in light trade; formula trades $1 higher; futures lower; beef prices lower.
Cotton cash prices and futures lower.
Grains and soybeans mostly higher, except wheat lower.
Crude oil lower; natural gas higher.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $4 higher, though one location was weak to $2 lower on heifers over 500 pounds. Feeder cattle futures were lower. Limited supplies of cattle continue to support market, but some fluctuations are to be expected when cattle are trading at or near record-high levels. A rise in corn prices pulled feeder futures lower. Fed cattle cash prices were $2 lower on a few hundred head of confirmed sales. That’s not enough for a decent market test, but more active trade in Kansas and Iowa was at comparable levels. Formula trades were $1 higher. Wholesale boxed beef values were lower on Friday. Estimated cattle harvest for the week totaled 553,000 head, down 23K from last week and 70K lower than a year ago. Cumulative harvest is running 7.2% behind a last year. Fed cattle futures followed the cash trade lower.

Cotton cash prices and futures were lower with no fresh news to hold prices or push them higher. USDA classing offices have now graded 3.9 million bales of cotton, about 26% of the expected total for the year. Quality is better than a year ago, with 74% of this year’s cotton meeting specifications for delivery against futures contracts versus only 59% at this time last year.

Corn and grain sorghum ended the day higher after trading lower into mid-day. Open harvest weather, continued good yields and a stronger dollar all pressured the market, but a late-day surge in soybean prices carried corn along with it.

Wheat prices were lower because of a stronger dollar, which makes U.S. goods more expensive to foreign buyers, forecasts of rain in dry areas of eastern Europe and reports that Russia captures some wheat export business.

Stock markets closed higher on Friday, with both the Dow and S&P 500 closing at new record highs. The U.S. Federal Reserve Bank ended its asset purchases last week and is widely expected to start raising interest rates, albeit very gradually, sometime next year. However, the Bank of Japan and European Central Bank have stepped up their economic stimulus efforts. On the down side, the Commerce Department reported that consumer spending fell in September for the first time since January, compared to expectations for an increase and personal income increased less than expected. A leading consumer sentiment 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.