Texas Daily Ag Market Summary 12/10/14

Posted 9 years 353 days ago by

Feeder cattle unevenly steady from $2 higher to $2 lower; futures higher.
Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices mixed.
Cotton higher.
Grains and soybeans mostly higher; wheat futures lower.
Crude oil higher; natural gas higher.
Stock markets mixed.

Texas feeder cattle auctions quoted prices unevenly steady, from $2 higher to $2 lower per cwt, with Amarillo weak to $5 lower. Feeder cattle futures were higher despite higher corn futures prices. The Texas fed cattle cash trade remained inactive again on Tuesday, but formula trades were higher. Initial cash asking prices are around $168, with a few early packer bids at $162-$164. Wholesale boxed beef values were mixed, with Choice cuts lower and Select-grade slightly higher. Estimated cattle harvest through Tuesday totaled 224,000 head, up 2,000 from last week but down 15,000 from a year ago. Fed cattle futures were higher, with sources noting that the gains appeared to be mostly speculative activity rather than a change in market trend.

Cotton cash prices and futures were higher on Tuesday in preparation for USDA’s supply-demand forecasts. Pre-report estimates reflect little to no change compared to November levels, but speculators have eyes on China’s ending stocks. News wires reported that the Turkish anti-dumping investigation of U.S. cotton has already disrupted trade between the two countries.

Corn and grain sorghum prices were higher with traders watching South American conditions and awaiting a possible increase in demand in Wednesday’s USDA report.

Wheat cash prices were slightly higher, but futures were lower as concerns subsided about Russia possibly limiting exports. Markets are also anticipating continued bearish numbers in today’s supply and demand report.

Stock markets were mixed, with DJIA lower, S&P unchanged, and others slightly higher. Continued optimism about the U.S. economy offset a steep drop in global stocks. Sources also noted that interest in energy stocks picked up following recent declines.

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.