Texas Daily Ag Market Summary 2/19/15

Posted 9 years 283 days ago by

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

Texas feeder cattle auctions quoted prices mostly higher, ranging from steady to $16 higher, but one location reported uneven prices to $7 lower. Feeder cattle futures were higher, but pressure in deferred contracts are causing concern for interested buyers. Prices have strengthened slightly has the market expects lower figures in Friday’s cattle on feed report. The Texas fed cattle cash trade was inactive on Wednesday. Wholesale boxed beef values were slightly higher. Estimated cattle harvest so far this week totaled 307,000 head, down 9K from the previous week, and 11K from a year ago. Year-to-date harvest is down 3.5%. Fed cattle futures were slightly higher after an uneven trading day and limited cash offerings to draw support from.

Cotton cash and futures prices were higher because of technical trading and strong demand. USDA export reports have been delayed until Friday because of Monday’s holiday.

Corn and grain sorghum prices were lower following crude oil and the dollar value. Exports for corn, sorghum, and soybeans are expected to be lower due to the week long New Year celebration in China. Texas corn seeding began in areas of the Blacklands, the Coastal Bend, and the Lower Valley. Field preparations for planting sorghum began in the Upper Coast, the Coastal Bend, and the Lower Valley.

Wheat prices were also lower due to profit taking and pressure from other row crops. The Texas Winter Wheat crop is 99% emerged, up 1 point from last week, and consistent with this time last year. 44% of the wheat crop remains in excellent or good condition, same as last week’s conditions.

This week’s U.S. Drought Monitor for Texas showed some worsening in drought conditions for the state with almost 61% of the state still in some stage of drought intensity, up 4.1 percent points from last week. Almost 28% of the state remains in severe, extreme, or exceptional drought, up 3.1 percent points from last week. On the national level, drought conditions also worsened with almost 55% of the U.S. experiencing abnormal dryness or some degree of drought, up over two percent points from last week.

Stock markets were mixed with the Dow and S&P 500 down slightly and the NASDAQ index closing higher. Minutes from the Federal Reserve’s meeting revealed no agreed upon plan for changes to interest rates. Crude oil futures were lower at $52.14 per barrel.

Daily Market Summary Data for 2/19/2015

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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.