Texas Daily Ag Market Summary 2/13/15

Posted 9 years 289 days ago by

· Feeder cattle steady to $10 higher; futures higher.
· Fed cattle cash trade N/A; formula trades higher; futures slightly higher; beef prices lower.
· Cotton higher.
· Grains and soybeans mixed.
· Crude oil higher; natural gas lower.
· Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $10 higher per hundredweight. Feeder cattle futures were higher in response to support from strong cash sales. However, the Texas fed cattle cash trade continued to be quiet yesterday, and wholesale boxed beef values were lower. Estimated cattle harvest through Thursday totaled 425,000 head, down 2K from the previous week, but up 4K from a year ago. Year-to-date harvest is up less than 1%. Fed cattle futures were slightly higher due to short coverings and firm feedlot sales. The market will continue to be volatile as traders watch demand and exports. Net export sales for January 30-February 5 totaled 13,800 metric tons (MT), down 1% from last week, but up 23% from the weekly average, with Japan, South Korea, and Hong Kong as the top buyers again. Export shipments of 11,500 MT, up 22% from last week, went primarily to South Korea, Japan, and Hong Kong.

Cotton cash and futures prices were higher yesterday, despite the lowest weekly export sales report since early October. Exports remained at a high, and all-cotton export commitments now make up 93% of USDA’s revised 2014/2015 estimate. Export cotton sales were 52,200 bales. Sales were 88% lower than last week, and 89% lower than the prior 4-week average with increased purchases for China, Vietnam, and Indonesia. Shipments of 289,700 bales, yet another marketing-year high, were up 3% from last week and 15% from the average. The primary destinations were Turkey, China, and Vietnam.

Corn and grain sorghum prices were lower with traders looking for higher demand, despite support from the rise in crude oil. Soybean and soybean meal closed with small gains again following a bullish export sales report and a lower value in the U.S. dollar. Corn export sales were 1,003,100 MT for the week, up 19% from last week, but down 17% from the 4-week average. Mexico, Japan, and Colombia had increased purchases. Export shipments of 618,900 MT went mainly to Mexico, Japan, and Saudi Arabia. This week’s shipments were 13% lower than last week, and 9% lower than the average.

Wheat prices closed 4 to 5 cents lower with the markets balancing outside factors such as the varying dollar value, weather concerns, the appeasement of Ukraine’s political uprisings, competitiveness of Canadian wheat, and Russian export restrictions. Net export sales for wheat were 409,300 MT, up 3% from last week, but down 3% from the prior 4-week average. Increased sales were reported for Taiwan, Thailand, and Japan. Shipments were 373,800 MT, 15% lower than the previous week, but 16% higher than the weekly average. The top destinations were the Mexico, Nigeria, and China.

Stock markets were higher after strong quarterly report earnings and gains in the European market. French and German leaders settled Ukraine’s civil conflict with Russian supported separatists.

Daily Market Summary Data for 2/13/2015

If you are interesting in receiving this daily report, please subscribe to TDAMarketNews@TexasAgriculture.gov.

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.