Texas Daily Ag Market Summary 2/3/15

Posted 9 years 298 days ago by

· Feeder cattle $2 to $10 higher; futures limit lower.
· Fed cattle cash trade inactive; formula trades lower; futures lower; beef prices mixed.
· Cotton higher.
· Grains and soybeans mostly lower, corn unchanged.
· Crude oil higher; natural gas lower.
· Stock markets higher.

Texas feeder cattle auctions quoted prices strong, ranging $2 to $10 higher per hundredweight. Feeder cattle futures were limit lower in all 2015 contracts in response to an increase in the USDA cattle inventory. The Texas fed cattle cash market had no reportable trade to start the week. Wholesale boxed beef values were mixed, with Choice Grade higher and Select Grade lower. Estimated cattle harvest to start the week totaled 105,000 head, down 7,000 from last week, and 6,000 from a year ago. Year-to-date harvest is down 5.4%. Fed cattle futures were also lower from the stronger-than-expected beef herd expansion in USDA’s cattle report.

Cotton cash and futures prices increased 50 and 53 points, respectively, to close at 58.63 and 59.89 cents per pound. U.S. upland classing reached 14.901 million running bales, including 3.469 million on the Texas High Plains. The USDA NASS Texas field office reported that the state’s cotton crop is 99% harvested, up 2 points from last week, but down 1 percent point from last year and the 5-year average.

Corn prices were near unchanged and grain sorghum cash prices were 2 to 3 cents lower in the Texas High Plains. Favorable growing conditions in South America is causing pressure on corn and soybean prices.

Wheat prices were also lower, but support could come from the softening of the dollar and the Russian export taxes now in effect. The Texas Winter Wheat crop is 97% emerged, up 1 point from last week, and consistent with this time last year and the 5-year average. 42% of the wheat crop remains in excellent or good condition, same as last week’s conditions.

Stock markets were higher following a rally in oil prices and energy shares. Oil futures rose 2.8% on Monday. In other news, FDA announced yesterday that it is requesting an additional $109.5 million for the implementation of the Food Safety Modernization Act (FSMA) as part of President Obama’s FY 2016 budget request.

Daily Market Summary Data for 2/3/2015

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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.