Texas Daily Ag Market Summary 1/21/15

Posted 9 years 311 days ago by

· Feeder cattle $5 to $12 lower; futures slightly higher.
· Fed cattle cash trade inactive; formula trades higher; futures lower; beef prices lower.
· Cotton lower.
· Grains and soybeans mixed.
· Crude oil lower; natural gas lower.
· Stock markets slightly higher.

Texas feeder cattle auctions noted a lower undertone in prices, with some locations reporting prices at $5 to $12 lower per hundredweight (cwt). Feeder cattle futures were slightly higher for January’s contract, though strong losses were recorded for deferred contracts. Analysts are forecasting addition pressure as January’s contract expires with prices potentially falling below $200 per cwt. The Texas fed cattle cash trade was inactive on Monday and Tuesday. Wholesale boxed beef values were lower. Estimated cattle harvest through Tuesday totaled 224,000 head, up 2K from last week, but down 12K from a year ago. Year-to-date harvest is down 5.1%. Fed cattle futures were lower as boxed beef prices begin to drop and feeder cattle futures turn bearish.

Cotton cash prices were 1.3% lower and futures prices dipped almost 2.5% with traders still concerned about global economic growth and the return of wintry conditions to the Texas Plains. The USDA NASS Texas field office reported that the state’s cotton crop is 96% harvested, up about 2 percent points from last year, but 3 percent points behind the average.

Corn and grain sorghum prices were higher with new fresh news to support the gains. Soybeans were lower after China canceled another purchase and rain is forecasted for a the drier regions of Brazil.

Wheat prices followed corn higher, and settled up a penny in both the cash and futures markets. The Texas Winter Wheat crop is 95% emerged, up 2 points from last year and 1 point from the average. 43% of the wheat crop is in excellent or good condition.

Stock markets were closed slightly higher on Tuesday, despite the 4.7% drop in crude oil prices. Traders are awaiting the European Central Bank meeting on Thursday that is expected to announce a program aimed at reviving Europe’s economy.

In other news, Greg Abbott was sworn into office yesterday as Texas’ 48^th Governor.

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.