Texas Daily Ag Market Summary 12/17/14

Posted 9 years 346 days ago by

Feeder cattle steady to $10 lower; futures sharply lower.
Fed cattle cash trade inactive; formula trades higher; futures sharply lower; beef prices lower.
Cotton lower.
Grains and soybeans mostly lower; wheat higher.
Crude oil slightly higher; natural gas lower.
Stock markets lower.

Texas feeder cattle auctions quoted prices mostly steady to $10 lower. Feeder cattle futures were down the $3 daily trading limit, a perfect repeat of Monday’s behavior with limit loss opening bids setting the tone for the day’s trade opportunities. The Texas and central U.S. fed cattle cash trade was dormant, as it usually is early in the week. Wholesale boxed beef values were lower to sharply lower with Choice cuts down to $242.88 per cwt and Select-grade at $234.25. Estimated cattle harvest so far this week totaled 226,000 head, 2,000 higher from the previous week, but lower by 16,000 compared to last year. Year-to-date harvest is lower by 6.6%. Fed cattle futures were also sharply lower, down their max daily trading limit due to aggressive losses filtering into the market.

Cotton cash futures prices were lower, eliminating most of the previous 3-day gain. This was most related to decline in oil prices and the reports that China would be halting their cotton imports by half. This news largely impacts India and Australia, though USDA expects a small decline in U.S. cotton exports.

Corn and grain sorghum prices were all lower due to bearish fundamental trading with no fresh news to account for the changes. However, Ukraine did confirm corn export disruptions with China, and Beijing announced their lift on the MIR162 corn ban, both of which could mean higher demand for U.S. corn.

Wheat prices finished higher related to the plummeting value of the Russian ruble and potential changes in U.S. exports, though analysts are expecting prices to weaken in the coming weeks.

Stock markets were lower again for the third day, also related to Russian economic turmoil. Both U.S. and European markets slide into red because of crude oil price declines, though energy futures finished near unchanged at close.

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.