Texas Daily Ag Market Summary 2/26/15

Posted 9 years 275 days ago by

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

Texas feeder cattle auctions quoted prices steady to $5 lower with limited auctions reporting this week’s sales. Feeder cattle futures were higher reflecting moderate to strong buyer interest and triple-digit gains holding for short-term contracts. The continuation of this upward trend will be contingent upon beef prices. The Texas fed cattle cash trade reported sharply lower prices down to $156 per cwt on 56 head. Wholesale boxed beef values were sharply higher. Estimated cattle harvest through Wednesday totaled 309,000 head, up 2K from last week, but down 20K from a year ago. Year-to-date harvest is down 6.1%. Fed cattle futures were higher as buyers were drawn back into the market following triple-digit gains in a breakaway from speculative selling.

Cotton cash and futures prices were higher as traders expect export sales to rise in comparison with the previous week’s totals. However, export sales have been facing a large number of cancellations that could bring prices lower again.

Corn and grain sorghum prices were lower due to projected precipitation in the Southwestern Plains and lower ethanol production for the week. The soybean market is facing a trucker strike in Brazil and weak Chinese soybean interest following the nation’s New Year Holiday.

Wheat prices were lower despite an announcement by USDA of a 120,000-ton sale of wheat to Egypt. The high valuation of the dollar and cold domestic forecasts continue to provide a credible threat to export interest and investment.

This week’s U.S. Drought Monitor for Texas showed a worsening in drought conditions for the state with about 62% of the state still in some stage of drought intensity, up about 1 percent point from last week. Almost 28% of the state remains in severe, extreme, or exceptional drought, up slightly from last week and up 5 percent points from three months ago. On the national level, drought conditions improved slightly with about 54% of the U.S. experiencing abnormal dryness or some degree of drought, down 0.63 percent points from last week.

Stock markets were mixed with limited trade. The DOW pushed to a new high following Chairwoman Yellen’s testimony on Capitol Hill, though NASDAQ and S&P 500 closed with slight losses. Traders continue to watch how the Federal Reserve will raise interest rates as the U.S. economy gains strength.

Daily Market Summary Data for 2/26/2015

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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.