Texas Daily Ag Market Summary 1/30/15

Posted 9 years 303 days ago by

· Feeder cattle uneven; futures slightly lower.
· Fed cattle cash trade lower; formula trades lower; futures lower; beef prices sharply lower.
· Cotton cash unchanged; futures higher.
· Grains and soybeans mixed.
· Crude oil higher; natural gas lower.
· Stock markets higher.

Texas feeder cattle auctions quoted prices uneven, ranging from $3 to $6 lower to $5 higher per hundredweight. Feeder cattle futures were a nickel lower in its now expired January contract after a day of instability and profit taking. The Texas, Oklahoma, and New Mexico fed cattle cash trade was slightly lower at $159 per cwt on 390 head traded. Wholesale boxed beef values were sharply lower. Estimated cattle harvest through Thursday totaled 445,000 head, up 12K from the last week, but down 12K from a year ago. Year-to-date harvest is down 2.6%. Fed cattle futures were lower with limited but lower cash trade and a decline in the beef prices. Net export sales for January 16-22 totaled 10,000 metric tons (MT), up 4.2% from last week, with Japan, South Korea and Mexico as the top buyers. Export shipments of 10,900 MT, down less than 1% from last week, went primarily to Japan, South Korea, and Mexico as well.

Cotton cash prices were unchanged, but futures were higher on Thursday after another strong export report from USDA. Doane forecasts that USDA will increase its export estimate for cotton in next month’s WASDE. Export cotton sales were at a marketing-year high again for the third week in a row at 546,200 bales. Sales were 16% higher than last week and 90% higher than the prior 4-week average with increased purchases for China, Vietnam, and Indonesia. Shipments were at 274,800 bales, also another marketing-year high, were up 22% from last week, and 33% from the average. The primary destinations were China, Turkey, and Vietnam.

Corn and grain sorghum prices were slightly lower, down 1 to 2 cents in their respective cash and futures markets. Despite a positive export report, large supplies and the dollar value are pressuring prices. Corn export sales were 1,068,200 MT for the week, down 51% after last week’s marketing-year high, but consistent with the 4-week average. Japan, Mexico, and South Korea, had increased purchases. Export shipments of 942,600 MT went mainly to Japan, Mexico, and Venezuela. This week’s shipments were 24% higher than last week and 61% higher than the average.

Wheat prices were higher, even with the downward momentum in corn and soybean prices. The Russian restrictions will take effect next week, but grains are still battling the firmer U.S. dollar. Net export sales for wheat were 544,400 MT, up 19% from last week, and 74% from the prior 4-week average. Increased sales were reported for Philippines, Thailand, and Mexico. Shipments were 340,500 MT, 22% higher than the previous week, and 23% higher than the weekly average. The top destinations were the Japan, Mexico, and the Philippines.

Stock markets were higher after some early morning losses. A slight increase in oil prices helped pull the indexes higher in the afternoon, with 36% of the Dow’s increase coming from increases in McDonald’s and Boeing prices. Analysts and traders are speculating the correlation between the movement of oil prices and global economic growth.

Daily Market Summary Data for 1/30/2015

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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.