Dec 18 2014

Texas Daily Ag Market Summary 12/18/14 Posted 9 years 345 days ago by

• Feeder cattle $3 to $12 lower; futures sharply lower.
• Fed cattle cash trade lower; formula trades higher; futures lower; beef prices lower to sharply lower.
• Cotton higher.
• Grains and soybeans higher.
• Crude oil higher; natural gas higher.
• Stock markets higher.

Texas feeder cattle auctions quoted prices $3 to $10 lower, with one location reporting $12 lower on a few head. Feeder cattle futures were lower again by the $3 limit, possibly prompting producers to sell any cattle still in reserve. Feeder cattle futures were not impacted by the fluctuation in the live cattle market. The Texas fed cattle cash trade was sharply lower, down $16 over the last two weeks to $157 per cwt. Wholesale boxed beef values were lower to sharply lower again. Estimated cattle harvest for the week totaled 327,000 head, down 9K from last week, and down 36K from a year ago. Year-to-date harvest is down 9.9%. Fed cattle futures closed lower following volatile limit loss and aggressive gain movement. This wide price swing is causing more trader uncertainty for the future.

Cotton cash and futures prices were higher on Wednesday with news that the Federal Reserve would be keeping interest rates low for a “considerable time.” Prices also increase due to reports that Chinese mills are complaining about their domestic cotton’s quality.

Corn and grain sorghum prices were higher after USDA Secretary Vilsack confirmed China’s approval of the MIR 162 corn trait. Soybeans also saw slightly higher futures at Wednesday’s close in relation to strong Chinese demand.

Wheat prices followed row crops higher, closing at its highest point in over six months. The market continues to watch the Russian situation, though analysts’ long term forecast suggest larger global supplies will offset any declines in Russian production and this rise in price.

Stock markets were also higher due to the Federal Reserve’s pledge about lower interest rates and a rally in energy futures. Wednesday witnessed the third-highest trading volume of 2014.

This week’s U.S. Drought Monitor (click here for the Texas map or here for the U.S. map and summary) showed little to no change for the conditions in Texas with almost 67% of the state still in some stage of drought intensity. 23% of the state remains in severe, extreme, or exceptional drought, down 12 percent points from three months ago. On the national level, almost 50% of the U.S. is experiencing abnormal dryness or some degree of drought, up another 1% from last week.

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.