Texas Daily Ag Market Summary 1/29/15

Posted 9 years 303 days ago by

· Feeder cattle mostly $3 to $12 lower; futures higher.
· Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices mixed.
· Cotton higher.
· Grains and soybeans mostly lower; soybean meal higher.
· Crude oil lower; natural gas lower.
· Stock markets lower.

Most Texas feeder cattle auctions quoted prices $3 to $12 lower per hundredweight, though one location did report prices steady to a $1 higher in comparison to last week’s sale. Feeder cattle futures were bullish as it recovers from the oversold low prices from the previous week’s activities. January’s contract expires today. The Texas fed cattle cash trade remained inactive on Wednesday. Wholesale boxed beef values were mixed, with Choice Grade down 41 cents and Select Grade up 8. Estimated cattle harvest through close of business yesterday totaled 335,000 head, up 1,000 from the previous week, but down 4,000 from a year ago. Year-to-date harvest is down 1.2%. Fed cattle futures were also higher.

Cotton cash and futures prices were higher with support from expectations of another strong export sales report. A proposal has been submitted that will impose position limits on participants in the futures commodities markets. The National Cotton Council, marketing cooperatives, and the American Cotton Shippers Association support the Commodity Futures Trading Commission’s proposal in hopes that it will help “preserve market integrity.”

Corn and grain sorghum prices were lower as the U.S. dollar value threatens export potential. Low oil prices also strain the market in regards to ethanol demand. Wheat prices were lower again too, with continued pressure from low export sales, large global supplies, and the persistent strength of the dollar.

This week’s U.S. Drought Monitor for Texas showed some improvement in drought conditions with 58.58% of the state still in some stage of drought intensity, down 1.62 points from last week. Less than 24% of the state remains in severe, extreme, or exceptional drought, down less than one point from last week but down almost four points from three months ago. On the national level, drought conditions worsened with almost 52% of the U.S. experiencing abnormal dryness or some degree of drought, up over five percent points from last week.

Stock markets were lower, despite the Federal Reserve’s announcement that there is no rush to raise interest rates. The 3.9% drop in crude oil futures prices, now down to $44.45 per barrel, caused to a large selloff led by energy companies. U.S. oil supplies rose to 8.9 million barrels last week, its highest in at least an 80-years.

Daily Market Summary Data for 1/29/2015

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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.