Texas Daily Ag Market Summary 2/27/15

Posted 9 years 274 days ago by

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

Texas feeder cattle auctions quoted prices mostly steady to $5 lower. Feeder cattle futures were higher as buyers quickly jumped back into the market with end-of-session buyer support fostering hope for long-term buyer interest. The Texas fed cattle cash trade was inactive. Wholesale boxed beef values were mixed. Estimated cattle harvest for the week totaled 417,000 head, up 1,000 from the previous week’s total, but down 31,000 from a year ago. Year-to-date harvest is down 6.9%. Fed cattle futures were higher, reflective of the upcoming Spring push to grow demand. Net export sales for February 13-19 totaled 13,900 metric tons (MT), up 29% from last week, with Hong Kong, Japan, and South Korea as the top buyers. Export shipments of 11,500 MT, on par with last week, went primarily to Japan, Mexico, and South Korea.

Cotton cash and futures prices were lower on Thursday despite a rebound in cotton export sales. Export cotton sales were 71,400 bales. Sales were three times higher than last week’s marketing-year low, but still down 70% from the prior 4-week average with increased purchases for Vietnam, China, and Japan. Shipments of 192,900 bales were down 33% from last week and 32% from the average. The primary destinations were China, Vietnam, and Turkey.

Corn and grain sorghum prices were higher due in part to the sustained increase in feed demand as winter weather conditions persist throughout the U.S. Corn export sales were 715,800 MT for the week, down 23% from last week and 23% from the 4-week average. Mexico, Colombia, and Japan had increased purchases. Export shipments of 865,100 MT went mainly to Japan, Taiwan, and Mexico. This week’s shipments were 24% higher than last week and 21% higher than the average.

Wheat prices followed soybeans higher despite gains in dollar value. Net export sales for wheat were 328,300 MT, up 23% from last week, but down 19% from the prior 4-week average. Increased sales were reported for Indonesia, Canada, and Japan. Shipments were 493,900 MT, 26% higher than the previous week and 28% higher than the weekly average. The top destinations were the Japan, Iraq, and Canada.

Stock markets were mixed at close yesterday with some technology shares reversing their current downward trend while the closing of the fourth-quarter earnings season inspired lighter overall trading activity. Crude oil faced a renewed selloff dragging prices down and causing energy companies to post the sharpest losses within the S&P 500.

Daily Market Summary Data for 2/27/2015

If you are interested in receiving this daily report, please subscribe here.

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.

```````````````````````````````````````````````````````````````