Texas Daily Ag Market Summary 11/19/14

Posted 10 years 9 days ago by

Feeder cattle steady to $3 higher; futures higher.
Fed cattle cash trade inactive; formula trades higher; futures lower; beef prices higher.
Cotton higher.
Grains and soybeans lower.
Crude oil and natural gas lower.
Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $3 higher. Futures were higher in response to lower corn futures. The fed cattle cash trade remained inactive through Tuesday with asking prices holding firm at $174, up $5 from last week’s average. Formula trades were less than $1 higher. Wholesale boxed beef values were slightly higher for Choice and higher for Select offerings. Estimated cattle harvest so far this week totals 223,000 head, 8K higher than the first two days last week, but down 16K from a year ago. Fed cattle futures were lower.

Cotton cash prices and futures were higher after the International Cotton Advisory Committee forecast of world cotton carryover came in lower than the current USDA projection.

Corn and grain sorghum prices were lower as harvest nears completion around the country. Forecasts still call for a record-large corn crop, but there are some supportive elements out there. Many are expecting a downward adjustment in USDA acreage to better align NASS estimates with FSA certified acres and reports note that producers don’t appear to be in a big hurry to sell at what they see as bargain prices.

Wheat prices were lower with a lack of any fresh news to push prices higher. Large global supplies and slack demand continue to put pressure on wheat prices so they tend to drift lower during any lull. Somewhat bullish factors including a softer dollar, renewed tensions in the Black Sea region and cold weather on the Plains were largely priced into the market last week.

Stock markets closed higher yesterday, with both the Dow-Jones Industrial Average and the S&P 500 posting new record highs, mostly due to optimism over the global economy. Investors were encouraged that both the European Central Bank and Japan expressed willingness to boost stimulus efforts. In addition, a German economic confidence index came in higher for the first time in over a year. In the U.S., the National Association of Home Builders index of builder confidence came in higher than expected. The Labor Department reported that producer prices rose by 0.2% during October, compared to expectations for a 0.2% decline.

Rep. Mike Conaway of Texas was selected to be the next chairman of the U.S. House Committee on Agriculture.

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.