Texas Daily Ag Market Summary 11/7/14

Posted 10 years 21 days ago by

*** There will be no daily market summary posts next week, Nov. 10-14. ***

Feeder cattle mostly steady, few $3-$10 higher; futures higher.
Fed cattle cash trade inactive; formula trades unchanged; futures higher; beef prices lower.
Cotton higher.
Corn, grain sorghum, soybeans higher; wheat, rice lower.
Crude oil lower; natural gas higher.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady, with one location $3-$10 higher on calves and steady to $5 higher on feeders. Feeder cattle futures were higher. The fed cattle cash trade remained inactive through Thursday. However, a few head did sell yesterday in Nebraska and Colorado at $168, likely setting the market for the rest of the country. Negotiations here still have a sizable gap to close, with asking prices firm at $170-$172 and initial packer bids much lower at $164. Formula prices were unchanged. Wholesale boxed beef values were lower. Estimated cattle harvest for the week totals 445,000 head, up 6K from last week, but down 32K from a year ago. Fed cattle futures were higher. Beef export sales for the week totaled 6,900 metric tons (MT), down 66% from the previous week and 45% below the prior four week average. Primary buyers were South Korea, Canada and Japan. Export shipments of 13,900 MT were up 7% from a week earlier, but down 1% from the average. Japan, Hong Kong and South Korea were the leading destinations.

Cotton cash prices and futures were higher in spite of bearish export data. Cotton export sales totaled only 65,000 bales, down 65% from the previous week and 23% lower than the prior four-week average. China, Vietnam and Peru were the top buyers. Sales are still running ahead of the pace needed to make the projected marketing year total, but the gap is narrowing. Exports of 65,000 bales were the smallest weekly total so far this marketing year, down 8% from a week ago and 18% lower than the average. The primary destinations were Mexico, China and Turkey.

Corn and grain sorghum prices followed soybeans higher, in spite of mostly-bearish signals. Traders said they expect harvest to continue this week “at a good pace” and export data were disappointing. Corn export sales for the week totaled 478,200 MT, down 2% from the previous week and down 55% from the prior four-week average. Unknown destinations, Peru and Mexico were the primary buyers. Export shipments of 444,000 MT were 46% lower than a week earlier and 48% below the average, with Japan, Egypt and Costa Rica the leading destinations. Reports noted that South American corn is priced about a dime a bushel lower than U.S. and cheaper, lower quality corn from Ukraine is also starting to hit the market.

Wheat prices were lower due to continued favorable weather in most U.S. growing regions, improved conditions in Australia and very weak export data. Wheat export sales totaling 265,800 MT were down 40% from the previous week and down 32% from the prior four-week average. Mexico, the Philippines and Yemen were the top buyers. Exports of only 154,700 MT were the lowest of the marketing year, down 43% from a week earlier and 67% lower than the average. South Korea, Mexico and Brazil were the primary destinations.

Stock markets closed modestly higher after the European Central Bank reconfirmed its commitment to stimulating growth. “The ECB’s statement was mostly expected, but provided a positive backdrop for an otherwise quiet session.” In addition, new unemployment claims for the week came in lower than expected at the second lowest weekly total of the year. On the downside, for stocks anyway, oil prices declined again, raising concerns about energy stocks.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed a modest improvement in conditions in Texas with 74% of the state now in some degree of drought or abnormal dryness, down one percentage point from a week ago. 28% of the state remains in severe, extreme or exceptional drought, near unchanged from a week ago. Nationally, Nationally, 45 % of the country is experiencing abnormal dryness or some degree of drought, up two points from last week.

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.