Texas Daily Ag Market Summary 12/2/14

Posted 9 years 361 days ago by

Feeder cattle prices not available; futures sharply higher.
Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices mixed.
Cotton lower.
Grains and soybeans, cash price trends not available; futures mostly higher.
Crude oil higher; natural gas lower.
Stock markets lower.

A Texas feeder cattle auction price quote is not available as all the regular Friday-Saturday reporting locations were closed for the Thanksgiving holiday. As few auctions held sales earlier last week, with a wide range in prices, from $12 higher per cwt to $4 lower. On Monday, Oklahoma City was steady to $2 higher on feeders, but steady to $5 lower on calves. Feeder cattle futures were sharply higher, with all contract months up the $3 per cwt daily trading limit. Traders were concerned about cold conditions in cattle feeding country, with added support from an early dip in corn futures. The fed cattle cash trade was inactive on Monday, as it usually is early in the week. No word yet on asking prices or packer bids. Formula trades, mostly from Friday, were up nearly $2.50 per cwt. Wholesale boxed beef values were mixed, with Choice cuts modestly higher, but Select-grade offerings lower. Estimated cattle harvest on Monday totaled 111,000 head, down 5K from last week and 6K lower than a year ago. Fed cattle futures were higher.

Cotton cash prices and futures were lower on Monday. There was not fresh fundamental news to keep prices from falling so they did as traders refocused their attention on the large world supplies and slack demand. Friday’s sharply lower crude oil futures may have been a factor as cheaper oil makes cheaper synthetic fibers to compete with cotton.

Grain cash prices were higher than the last reported prices last Tuesday and futures were mostly higher than on Friday. Wheat led the advance, mostly due to concerns about cold temperatures and a lack of snow cover on the U.S. Plains. Traders also noted some weather issues in the Black Sea region and a growing consensus that Russia will likely not meet its production targets. Wheat export inspections were bearish, well below both last week and a year ago. Corn and grain sorghum generally followed wheat and soybeans higher, with no significant new market information of their own. Corn export inspections were higher than last week, but down from a year ago.

The U.S. yesterday formally appealed the World Trade Organizations ruling against country-of-origin. The U.S. Trade Representative’s office did not release a statement on the appeal.

Stock markets closed modestly lower yesterday “as manufacturing data overseas raised fresh fears of slowing economic growth, while a disappointing Black Friday weekend weighed on U.S. retailers.” Chinese economic indexes indicated growth there, but similar measures in Europe showed a slowdown. A retail trade group said post-Thanksgiving sales were down 11% from a year ago, with many analysts suggesting that an early start to the holiday discounts hurt actual weekend sales.

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.