Texas Daily Ag Market Summary 11/25/14

Posted 10 years 3 days ago by

TDA Offices will be closed Nov. 26-28 in observance of the Thanksgiving holiday. This is the time of year when we pause to count our many blessings, not the least of which is the world’s most abundant, cheapest and safest food supply. As you enjoy your Thanksgiving bounty, please take a moment to thank the farmers and ranchers that made it possible. I hope you all have a safe and Happy holiday!

Feeder cattle mostly steady to $5 higher, few $5-$15 higher; futures sharply lower.
Fed cattle cash trade inactive; formula trades lower; futures lower; beef prices higher.
Cotton lower.
Grains and soybeans mostly lower, except wheat unchanged.
Crude oil and natural gas lower.
Stock markets modestly higher.

Texas feeder cattle auctions quoted prices mostly steady to $5 higher, with one location $5-$15 higher on lighter calves. Feeder cattle futures were sharply lower, with nearby contract months down the $3 daily trading limit , mostly because of speculative activity. Market fundamentals have not changed, with tight supplies and strong demand continuing to support cash sales. The fed cattle cash trade was inactive with no word yet on initial asking prices or packer bids. Reports did note a firmer tone to the market. Both sides likely want to get this week’s trading finished ahead of Thanksgiving, but it remains to be seen if that can be accomplished. Wholesale boxed beef values were higher. Estimated cattle harvest on Monday totaled 115,000 head, up 4K from last week, but down 10K from a year ago. Fed cattle futures were lower, also mostly due to speculative selling.

Cotton prices were lower. There was no fresh news for the day so traders’ attention returned to the large world supplies and prospects for lower Chinese imports. In its last Crop Progress report of the season, USDA NASS reported that cotton harvest was 77% complete nationwide, even with last year, but six points below the five-year average. In Texas, only 57% of the crop has been harvested, well behind the 70% at this time a year ago and 79% on average. The remaining crop was rated in mostly fair to good condition.

Corn and grain sorghum prices were lower mostly because of spillover from lower soybeans. Weekly export inspections came in higher than last week, but lower than a year ago and USDA announced the sale of 116,000 metric tons of grain sorghum to unknown destinations. The U.S. corn harvest was 94% complete, equal to a year ago and two points above the average. Texas corn was 98% harvested, compared to 98% last year and 99% on average. U.S. grain sorghum was 88% harvested, less than both last year and the average. The Texas crop was 84% harvested, compared to 98% a year ago and 91% on average for this date.

Wheat cash prices were unchanged, but futures were mostly lower as declining row crops and weak fundamentals continued to pressure the market. Wheat export inspections were higher than both last week and a year ago. Texas winter wheat seedings were 92% complete, slightly behind both last year and the average.

Stock markets closed modestly higher on Monday. Reports noted investor optimism following news late last week that China will lower interest rates and take additional steps to stimulate its economy. However, U.S. economic news was mixed. The Dallas Federal Reserve manufacturing index came in higher than expected, but the Chicago Fed national business activity index was lower. A private service sector index was 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.