Texas Daily Ag Market Summary 1/15/15

Posted 9 years 318 days ago by

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

Texas feeder cattle auctions continue to quote steady prices, with a couple of locations reporting an increase of $5 to $8 per cwt. Feeder cattle futures closed lower, despite early gains. The Texas fed cattle cash market continues to have no trade to report, but wholesale boxed beef values continue to rise. Estimated cattle harvest for the week totaled 326,000 head, up 4,000 from the last week, but down 31,000 from a year ago. Year-to-date harvest is down 8.7%. Fed cattle futures were lower again today due to the continued low cash trade.

Cotton prices dipped on Wednesday with reports that China is changing their policy on cotton stock accumulation. With substantially lower imports by China because of their larger ending stocks, analysts are forecasting sharp rises for US and India’s respective supplies.

Corn and grain sorghum prices both had losses again yesterday after the U.S. Department of Energy reported the largest ethanol inventory since December 2012, which might potentially cause a cut back in ethanol production.

Wheat cash and futures prices were both seven cents lower, with spillover pressure from diminished row crop prices and improved weather conditions. Ukraine also raised it export forecast.

Stock markets were lower for the 4^th day in a row.

This week’s U.S. Drought Monitor for Texas showed drought conditions near unchanged with about 60% of the state in some stage of drought intensity, down less than 1 percent point. 23% of the state remains in severe, extreme, or exceptional drought, also down less than 1 percent point from last week and about 4 points from three months ago. On the national level, almost 45% of the U.S. is experiencing abnormal dryness or some degree of drought, up about 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.