Texas Daily Ag Market Summary 2/11/15

Posted 9 years 88 days ago by

· Feeder cattle steady to $8 higher; futures lower.
· Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices mixed.
· Cotton higher.
· Grains and soybeans mostly lower; sorghum cash higher.
· Crude oil lower; natural gas higher.
· Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $8 higher per hundredweight. Feeder cattle futures were lower due to profit taking and a rise in uncertainty over beef demand again. Feeder cattle futures continue to be a volatile commodity because of trade volume and a difference between supply and demand analysts. The Texas fed cattle cash trade was inactive on Tuesday. Wholesale boxed beef values were mixed, with Choice Grade down a nickel to $238.43 and Select Grade up to $233.56. Estimated cattle harvest so far this week totaled 219,000 head, up 2,000 from last week and 19,000 from a year ago. Year-to-date harvest is up 9.5%. Fed cattle futures were higher in February contracts in relation to the premium seen in recent feedlot sales, though later contract months suffered losses.

Cotton cash and futures prices were higher after supportive U.S. estimates were released by USDA. U.S. ending stock projection dropped 10.6% to 4.2 million bales, though world ending stocks slightly increased to 109.84 million bales. U.S. cotton production is still expected to total 16.08 million bales for 2014/2015, same as last month’s estimate.

Corn prices were about 3 cents lower in both markets but grain sorghum cash prices for the Triangle Area in the Texas High Plains were slightly higher. World figures showed South America, specifically Brazil and Argentina, to be on track for record corn and soybean crops, which pressured grains lower. U.S. corn ending stocks estimate for this harvest year was slightly lower at 1.8 billion bushels, but world production was higher at 189.64 million metric tons.

Wheat prices were a dime lower with traders following row crops and the firmer dollar. However, Ukraine continues to be under weather and financial stress, and multiple Middle Eastern countries are tendering for wheat. World production estimate for wheat increased to 725 million metric tons, as reported by USDA. Projected U.S. ending stocks for wheat totaled 692 million bushels, up slight from January’s prediction and 17% from last year’s estimate.

Stock markets were higher with investors hoping for a financial resolution in Greece. Coca-Cola Co. had large gains after a strong fourth-quarter profit report was released, and Apple climbed to a market capitalization valued at $700 billion, the first U.S. company to do so.

Daily Market Summary Data for 2/11/2015

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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.

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