Texas Daily Ag Market Summary 1/16/15

Posted 9 years 316 days ago by

· Feeder cattle $3 lower to $4 higher; futures sharply lower.
· Fed cattle cash trade N/A; formula trades higher; futures lower; beef prices mixed.
· Cotton higher.
· Grains and soybeans mostly lower, rough rice higher.
· Crude oil lower; natural gas lower.
· Stock markets lower.

Texas feeder cattle auctions quoted prices $3 lower to $4 higher per cwt, with a few locations noting the lower undertone for heavyweight (600+ lb.) cattle. Feeder cattle futures were limit lower in response to a lack of buying activity which is hindering any potential support. The Texas fed cattle cash trade remains inactive for live FOB head, though negotiated grid base sales are reporting $263.25 for both steers and heifers. Wholesale boxed beef values were mixed, with Choice Grade dipping $0.93 to $262.88 and Select increasing $0.39 to $254.07. Estimated cattle harvest to date this week totaled 438,000 head, up 8K from a week ago, but still down 39K from last year. Year-to-date harvest is down 8.1%. Fed cattle futures were modestly lower as traders remain uncertain about the direction of the fed cattle cash market. Net export sales for January 2-8 totaled 11,100 metric tons (MT), with Mexico, South Korea, and Japan as the top buyers. Export shipments of 12,600 MT went primarily to Japan, Hong Kong, and South Korea again. A trend will be reported next Friday once two solid weeks of January data are available for beef.

Cotton cash and futures prices were both up about a half a cent yesterday with aid from a strong USDA export report. Export cotton sales of 441,800 bales, a marketing-year high, were almost three times higher than last week and the prior 4-week average with increased purchases for China, Vietnam, and Turkey. Shipments were at 227,800 bales, another marketing-year high, was up 11% from last week, and 21% from the average. The primary destinations were China, Indonesia, and Vietnam.

Corn and grain sorghum prices were 1 to 2 cents lower. The Swiss National Bank announced their discontinued support for the franc and euro, causing investors to move towards the U.S. dollar. This will begin causing U.S. grains to be more expensive on the world market. Corn export sales were 818,800 MT for the week, up more than double from the previous week, but still down 10% from the 4-week average. Mexico, South Korea, and Algeria had increased purchases. Export shipments of 400,200 MT went mainly to Japan, Mexico, and Colombia. This week’s shipment was 22% lower than last week and 40% lower than the average.

Wheat prices were also 2 cents lower in their cash and futures markets, with warmer weather in the Southern Plains likely to limit stress on prices. Net export sales for wheat was 284,000 MT, up 89% from last week, but down 11% from the prior 4-week average. Increased sales were reported for Philippines, Japan, and Mexico. Shipments were 225,600 MT, 51% lower than the previous week and 36% lower than the weekly average. The top destinations were the Japan, Thailand, and the Philippines.

Stock markets continued their decline due to reports of disappointing bank earnings and concerns about global economic growth. Crude oil fell 4.6% to close at $46.25 a barrel on Thursday.

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.