Texas Daily Ag Market Summary 12/22/14

Posted 9 years 341 days ago by

Feeder cattle $3 to $10 lower; futures higher.
Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices lower to sharply lower.
Cotton higher.
Grains and soybeans mixed.
Crude oil higher; natural gas lower.
Stock markets higher.

Texas feeder cattle auctions quoted prices $3 to $10 lower, with Texas direct feeder cattle sales going for $5 to $12 lower. Feeder cattle futures were sharply higher in response to the new trading range for $4.50 per cwt implemented on Thursday. The Texas fed cattle cash trade remained inactive on Friday. Wholesale boxed beef values were lower to sharply lower. Estimated cattle harvest for the week totaled 552,000 head, down 17K from last week and 65K from a year ago. Year-to-date harvest is down 10.5%. Fed cattle futures were higher despite pressure from lower beef prices.

Cotton cash and futures prices were higher on Friday, with futures finishing 35 points higher for the week. This suggests global economic outlook and demand look favorable, though estimates of U.S. cotton production next year will be lower.

Corn cash and futures prices remained unchanged, but grain sorghum prices were a cent lower. Corn trade seemed steady in relation to spillover from wheat trading and a firmer dollar. Soybeans were lower because of possible slowing commercial demand. There is no new news about the weather in South America to account for the loss. Only rough rice closed with a gain.

Wheat prices were also lower, as the talk about uncertainty in Russia eases and speculative profit taking occurred. Prices are expected to continue their decline as the market focuses on the large carryover stocks.

Stock markets were higher following news that China’s central bank dropped interest rates and the central bank of Europe reiterated its plans to increase its stimulus program.

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.