Texas Daily Ag Market Summary 3/6/15

Posted 9 years 268 days ago by

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

Texas feeder cattle auctions quoted prices mostly steady to $10 higher. Feeder cattle futures were lower, demonstrating the chances of a steady decline in cattle prices should reports continue to trend bearish. The Texas fed cattle cash trade remained inactive. Wholesale boxed beef values were mixed. Estimated cattle harvest for the week totaled 432,000 head, up 15,000 from the previous week’s total, but down 10,000 from a year ago. Year-to-date harvest is down 2.3%. Fed cattle futures were lower, reflective of the current pressure of large supplies. Net export sales for February 20-26 totaled 8,600 metric tons (MT), down 38% from last week, with Mexico, Japan, and South Korea as the top buyers. Export shipments of 11,800 MT, up two percent from last week, went primarily to Japan, Hong Kong, and South Korea.

Cotton cash and futures prices were lower on Thursday with China making large cancellations (114,000 bales). Export cotton sales were 22,000 bales, 30.8% lower than last week with increased purchases for Thailand, South Korea, and Japan. Shipments of 360,800 bales, a marketing year high, were up 87% from last week and 37% from the prior four-week average. The primary destinations were China, Vietnam, and Turkey.

Corn and grain sorghum prices were higher due in part to the release of an export sales report that showed foreign countries are still demanding U.S. corn. Corn export sales were 828,000 MT for the week, up 16% from last week, but down 5% from the previous 4-week average. Saudi Arabia, Mexico, and Japan had increased purchases. Export shipments of 1,378,800 MT, a marketing year high, went mainly to Japan, Colombia, and Mexico. This week’s shipments were 59% higher than last week and 91% higher than the average.

Wheat prices followed soybeans lower as precipitation across production areas signal the possibility for increased supply. Net export sales for wheat were 469,600 MT, up 43% from last week and 34% from the prior 4-week average. Increased sales were reported for Egypt, Mexico, and the Philippines. Shipments were 485,600 MT, 2% lower than the previous week, but 14% higher than the weekly average. The top destinations were the Japan, Israel, and Yemen.

Stock markets were mostly higher at close yesterday with limited trading activity. Mario Draghi, the president of the European Central Bank announced the March 9^th initiation of the bank’s government-bond purchasing program Draghi expects the program to boost economic growth and return inflation rates to historical levels. Crude oil prices were lower after rising for the past two sessions.

Daily Market Summary Data for 3/6/2015

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