Texas Daily Ag Market Summary 1/23/15

Posted 9 years 309 days ago by

· Feeder cattle $5 to $15 lower; futures higher.
· Fed cattle cash trade lower; formula trades lower; futures lower; beef prices mixed.
· Cotton lower.
· Grains and soybeans lower.
· Crude oil lower; natural gas lower.
· Stock markets higher.

Texas feeder cattle auctions quoted prices $5 to $15 lower per hundredweight, with some barns reporting a decrease as low as $18 in comparison to last week’s sale. Feeder cattle futures were higher thanks to some new buyer interest. The Texas fed cattle cash trade was lower at $160 per cwt. Wholesale boxed beef values were mixed yesterday, with Choice Grade down to $255.65 and Select Grade up to $248.89. Estimated cattle harvest to date this week totals 438,000 head, same as last week by this point, but down 35K from a year ago. Year-to-date harvest is down 7.4%. Fed cattle futures were lower due to lower quoted fed cattle cash trade figures. Net export sales for January 9-15 totaled 9,600 metric tons (MT), with South Korea, Mexico and Hong Kong as the top buyers. Export shipments of 11,000 MT went primarily to Japan, Mexico, and South Korea. Sales and shipments were 14% and 13% lower, respectfully, in comparison to last week.

Cotton cash and futures prices were lower on Thursday, with cash prices down ¾ of a cent to 56 cents per pound and futures down ¼ of a cent to 57.76 cents per pound. Traders were speculating that the weekly FAS export summary (usually issued on Thursday) would report a lower export sale figure for cotton. The report was delayed due to the Martin Luther King Jr. holiday on Monday, but the net export sales released this morning were instead another marketing-year high at 470,300 bales. This is up another 7% from last week and 89% the prior 4-week average. Shipments were at 226,200 bales, down 1% from last week’s marketing-year high, but still up 12% from the average. The primary destinations were China, Vietnam, and Turkey.

All grains were lower. Corn prices were reported about 4 cents lower in both cash and futures markets, and grain sorghum cash price lost 11 cents in the Texas High Plains, down to $6.86 per cwt. With news of the European Central Bank’s economic stimulus plan, the dollar strengthened in value and put pressure on most U.S. commodities, especially grains. Corn export sales were 2,185,400 MT for the week, up more than double again from the previous week and the 4-week average. Japan, South Korea, and Taiwan had increased purchases. Export shipments of 762,400 MT went mainly to Colombia, Mexico, and Peru. This week’s shipment was 91% higher than last week and 31% higher than the average.

Wheat prices were 7 cents lower in both markets, as the strong U.S. dollar is limiting competitiveness and causing European wheat to be more viable. Net export sales for wheat was 458,400 MT, up 61% from last week, and 69% from the prior 4-week average. Increased sales were reported for Philippines, Nigeria, and Israel. Shipments were 279,100 MT, 24% higher than the previous week, but 8% lower than the weekly average. The top destinations were the South Korea, the Philippines, and Mexico.

Stock markets were higher after the European Central Bank announced a bond-buying program aimed at reviving the Eurozone economy. ECB will be buying $69 billion a month in various assets, including government bonds, debt securities by European institutions and private-sector bonds.

Daily Market Summary Data for 1/23/2015

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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.