Texas Daily Ag Market Summary 11/18/14

Posted 10 years 10 days ago by

Feeder cattle steady to $5 higher; futures higher.
Fed cattle cash trade inactive; formula trades lower; futures higher; beef prices higher.
Cotton lower.
Grains lower; soybeans higher.
Crude oil lower; natural gas higher.
Stock markets mixed; near unchanged.

Texas feeder cattle auctions quoted prices steady to $5 higher per cwt, with light-weight calves continuing to post the largest gains. Feeder cattle futures were higher in response to lower corn futures. The fed cattle cash trade remained inactive yesterday across all major U.S. cattle feeding regions, while formula trades (mostly from Friday) were down $3. Initial cash asking prices are reportedly at $174, up $4+ from last week’s average. Wholesale boxed beef values were higher. Estimated cattle harvest on Monday totaled 114,000 head, up 6K from last week, but down 5K from a year ago. Fed cattle futures were higher.

Cotton prices slipped lower again yesterday as there was no fresh news to stop the downward spiral that started last week. USDA reported that the harvest season is winding down in East Texas, the Winter Garden and Upper Coast and that activities resumed on the Plains after being stalled by recent rains. The USDA NASS Texas field office reported that the state’s cotton crop is 46% harvested, well below the 69% average, with the remaining acreage rated in 34% good to excellent condition and 40% rated fair, both unchanged from a week ago. The U.S. cotton harvest was 69% complete, compared to a five-year average of 74%. National crop condition ratings have been discontinued for the season.

Corn and grain sorghum prices were lower after weekly export inspections came in lower than both last week and a year ago. Large global supplies and increasing new-crop inventories from the advancing U.S. harvest also factored into the decline. After markets closed, USDA reported that the national corn harvest was 89% complete, compared to 90% at this time last year and an average of 88%. In Texas, corn harvest was 97% complete, compared to 99% on average by this date. The remaining Texas crop was rated in 67% good to excellent condition, unchanged from last week. Grain sorghum harvest was 83% complete for both Texas and the nation, with both still running behind the normal pace.

Wheat prices were lower, under pressure from large world supplies and lackluster demand. Weekly export inspections were less than half of last week and last year. U.S. winter wheat seedings were 95% complete, slightly behind the average, with 60% of the crop rated in good to excellent condition, unchanged from last week, but slightly lower than a year ago. Texas wheat planting was 89% complete, also lower than normal.

Stock markets closed near unchanged yesterday, with some indexes slightly higher and some slightly lower. The S&P 500 rose only one point, but that was enough to set a new record-high. Global economic worries dominated the news. Japan reported that its economy contracted by 1.6% during the last quarter, following a drop of “7.3% in the prior quarter, meeting the conventional definition of a recession.” However, investors were encouraged by Japan’s stimulus plans and comments from the European Central Bank that it is ready to expand its bond purchases.

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.