Texas Daily Ag Market Summary 2/25/15

Posted 9 years 276 days ago by

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

Texas feeder cattle auctions quoted prices steady to $2 higher, with several locations closed due to inclement weather. Feeder cattle futures were lower following the cattle-on-feed report and end of the month closeouts. The Texas fed cattle cash trade remained inactive on Tuesday. Wholesale boxed beef values were higher. Estimated cattle harvest to date this week totaled 208,000 head, on par with last week, but down 7K from a year ago. Year-to-date harvest is down 3.3%. Fed cattle futures were slightly higher though deferred contracts showed losses. Price support may come later in the week in relation to increased beef values.

Cotton prices were higher on Tuesday with traders responding to reports from the Federal Reserve regarding interest rates. China’s production, stock and import policies are projected to be the primary driver of 2015-2016 world cotton supply and demand.

Corn and grain sorghum prices were mostly higher with only corn futures prices slightly lower. Demand remains “solid” though ending stocks are high and South American weather remains favorable. Soybean prices remain higher despite the availability of cheaper South American beans.

Wheat prices were higher due to the current low price and Egypt’s new tender for wheat. However, fundamentalists are still wary of the large world supply and slow demand for U.S. wheat.

Stock markets were higher due to the Federal Reserve’s announcement that interest-rate increases will be clearly marked and that there has been recent improvement in the U.S. economy. Crude oil prices continued to drop to $49.28 per barrel.

Daily Market Summary Data for 2/25/2015

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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.