Texas Daily Ag Market Summary 1/22/15

Posted 9 years 310 days ago by

· Feeder cattle $2 to $12 lower; futures higher.
· Fed cattle cash trade N/A; formula trades lower; futures higher; beef prices lower.
· Cotton higher.
· Grains and soybeans mixed.
· Crude oil higher; natural gas higher.
· Stock markets higher.

Texas feeder cattle auctions quoted prices $2 to $12 lower per hundredweight, with a few locations reporting $15 to $16 lower on a few head. Feeder cattle futures were higher on speculative trading with support from limited supplies and strong demand. The Texas fed cattle cash market had no reportable trade again yesterday, and wholesale boxed beef values were lower for the fourth business day in a row. Estimated cattle harvest so far this week totaled 334,000 head, up 8,000 from the previous week, but still down 22,000 from last year. Year-to-date harvest is down 6.2%. Fed cattle futures were also higher with analysts expecting volatile prices until the inventory report is issued next week.

Cotton cash and futures prices were back up about a quarter of a cent yesterday as traders await news from the Cotton Corp. of India who are working on a new marketing policy. India is expected to surpass China in cotton production this season.

Corn and grain sorghum prices were bullish due to low trading volume as the market awaits weather reports from Brazil and speculates about 2015 acreage. However, soybean and soybean meal had slightly higher settlement prices after China bought back the soybeans they previously canceled earlier in the week.

Wheat prices were also lower, despite renewed unrest in Ukraine. The market is still under pressure because of the large global ending stocks and slowed demand.

Stock markets were slightly higher after the European Central Bank met U.S. investors’ expectations by considering a stimulus package of 50 billion euros ($58 billion). Crude oil futures were back up 3% to $47.78 per barrel.

This week’s U.S. Drought Monitor for Texas showed drought conditions near unchanged with about 60% of the state still in some stage of drought intensity, same as last week. However, almost 25% of the state remains in severe, extreme, or exceptional drought, up about two percent points from last week but still down about three points from three months ago. On the national level, over 46% of the U.S. is experiencing abnormal dryness or some degree of drought, up almost 2% 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.