Texas Daily Ag Market Summary 12/11/14

Posted 9 years 352 days ago by

Feeder cattle unevenly steady from $6 lower to $5 higher; futures lower.
Fed cattle cash trade inactive; formula trades lower; futures higher; beef prices mixed.
Cotton cash unchanged; futures lower.
Grains and soybeans slightly lower.
Crude oil lower; natural gas slightly higher.
Stock markets lower.

Texas feeder cattle auctions quoted prices unevenly steady again today, from $6 lower to $5 higher per cwt. Feeder cattle futures were down to $231.60. The Texas fed cattle cash trade continued to be inactive on Wednesday, and formula trades lower to $270.58. Initial cash asking prices stayed firm at $168-$170 in the South. Wholesale boxed beef values were mixed, as Choice cuts dropped a little lower to $249.95 and Select-grade rose again to 236.37. Estimated cattle harvest for the week totaled 336,000 head, up 8K from the previous week, but down 25K from last year. Year-to-date harvest is down 6.9%. Fed cattle futures were eight cents higher based again on speculative activity.

Cotton cash prices remained unchanged, but futures were about a third of a cent lower at Wednesday’s close. While USDA’s supply-demand report estimated U.S. cotton crop to fall about a half a million bales, most of that in Texas, the world ending stocks increased to an all-time high. In its monthly Crop Production report issued on Wednesday, USDA NASS reported that U.S. cotton production is expected to total 15.9 million bales in 2014, down 3% from last month, but up 23% from a year ago. Analysts had expected the numbers to hold unchanged from last month. Texas production is forecast at 5,975,000 bales, down 7% (450,000 bales) from last month’s forecast, but up 42% from last year. USDA In the WASDE, U.S. cotton projected carryover stocks were reduced to reflect the lower production, with other balance sheet components staying unchanged. Projected world carryover stocks were raised again this month as lower consumption in China, India, Brazil, Pakistan and Turkey more than offset lower production in the U.S. and Greece.

Grain cash prices were mostly lower. Grain sorghum cash prices were higher, but both corn cash and futures prices were slightly lower by a cent. Soybean and soybean meal futures witnessed the largest drop due to the increase in Brazil’s crop estimate. Projected U.S. corn ending stocks came in somewhat lower than expected at 1.998 billion bushels, down less than one percent from last month, but 62 percent higher than a year ago and more than double the 2012/13 carryout. World projected ending stocks were higher than last month’s forecast.

Wheat prices were lower because of abundant world supply estimates, an increase in domestic ending stocks, and a calmer situation in Ukraine. Projected U.S. wheat ending stocks totaled 654 million bushels, up 1.5 percent from last month, 11 percent higher than a year ago and equal to pre-report expectations. World ending stocks increased , with world production still expected to be a record-high 722 million metric tons.

Stock markets were lower as oil prices dropped by nearly $3 a barrel. The lower price of crude followed the jump in domestic oil stock estimate. DJIA witnessed its largest one-day decline since early October, down 268 points to 17,533.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed conditions in Texas near unchanged, with a little over 66% of the state in some degree of drought or abnormal dryness. 23% of the state remains in severe, extreme or exceptional drought, slightly higher from last week. Nationally, 49% of the country is experiencing abnormal dryness or some degree of drought, up less than one percentage point from a week ago.

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.