Texas Daily Ag Market Summary 2/20/15

Posted 9 years 282 days ago by

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

Texas feeder cattle auctions were active, with prices ranging from $2 to $5 higher per hundredweight (cwt). Feeder cattle futures were lower in response to lack of interest in the live cattle market. The Texas fed cattle cash trade was lower, with 95 feeder heifers receiving $160 per cwt. Wholesale boxed beef values were slightly higher. Estimated cattle harvest through Thursday totaled 416,000 head, down 9,000 from the previous week, and 19,000 from a year ago. Year-to-date harvest is down 4.4%. Fed cattle futures were lower due to low trading activity and gains in the lean hog futures market. Net export sales for February 6-12 totaled 10,800 metric tons (MT), down 22% from last week and 9% from the weekly average, with Mexico, Hong Kong, and Japan as the top buyers. Export shipments of 11,500 MT, consistent with last week, went primarily to South Korea, Japan, and Mexico as well.

Cotton cash and futures prices were lower on Thursday with overbought readings and low export projections to blame. Trade in Asia has been lulled due to the Lunar New Year celebrations. The USDA Agricultural Outlook Forum projects all-cotton acreage to be at 9.7 million for 2015, down 12.1% from last year but up from the 9.4 million acre estimate by the National Cotton Council. Net export cotton sales were a negative 69,700 bales, a marketing-year low. Sales were 3 times lower than last week, but with increased purchases for Indonesia, South Korea, and Vietnam. Shipments of 288,500 bales were on par with last week, but up 8% from the average. The primary destinations were Vietnam, Turkey, and China.

Corn, grain sorghum, and soybeans prices were higher with help from USDA’s early planting estimates of 89 million acres of corn and 83.5 million acres of soybeans. Ethanol production was up 3,000 barrels per day and stocks were 0.2% lower, indicating strong demand. Corn export sales were 932,200 MT for the week, down 7% from last week and 25% from the 4-week average. Taiwan, South Korea, and Japan had increased purchases. Export shipments of 696,200 MT went mainly to Japan, Mexico, and Algeria. This week’s shipments were 13% higher than last week, but 5% lower than the average.

Wheat prices were slightly lower, despite strength in other grain markets and cold weather. Net export sales for wheat were 266,600 MT, down 35% from last week, and 41% from the prior 4-week average. Increased sales were reported for Sri Lanka, Thailand, and Indonesia. Shipments were 391,900 MT, 5% higher than the previous week, and 9% higher than the weekly average. The top destinations were the Thailand, Indonesia, and Sri Lanka.

Stock markets were mostly lower with only the NASDAQ index closing higher. Investors are concerned about the bailout in Greece and the renewed decline in oil prices. Germany rejected Greece’s request to extend their bailout set to expire at the end of February, though most traders believe that Greece will stay in the Eurozone.

Daily Market Summary Data for 2/20/2015

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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.