Texas Daily Ag News Market Summary 9/29/15

Posted 9 years 61 days ago by

Feeder cattle auction quoted prices $2 to $12 lower; futures lower.

Fed cattle cash trade inactive; formula trades higher; futures lower; beef prices lower.

Cotton higher.

Grains and soybeans mixed.

Crude oil higher; natural gas higher.

Stock markets slightly higher.

Texas feeder cattle auctions quoted prices $4 to $12 lower. Feeder cattle futures were $4.45 lower, closing at $180.82 per hundredweight (cwt). The Texas fed cattle cash trade was inactive yesterday. Wholesale boxed beef values were lower, with Choice grade losing $1.63 and Select grade losing $1.73 settling at $209.31 and $207.69 per cwt, respectively. Estimated cattle harvest for the week totaled 222,000 head, down 4,000 from last week’s total and down 10,000 from a year ago. Year-to-date harvest is down 4.3%. Fed cattle futures were $3.00 lower, closing at $129.17 per cwt.

Cotton prices were higher with cash prices and futures prices both gaining 0.25 cents to settle at 58.87 cents per pound and 60.05 cents per pound, respectively.

Corn and grain sorghum prices were mixed, with corn cash prices gaining $0.03 and corn futures prices gaining $0.02 settling at $3.99 and $3.89 per bushel, respectively. Grain sorghum prices lost $0.09 to settle at $6.14 per cwt.

Wheat prices were lower with cash and futures prices both losing $0.03 settling at $4.13 and $4.95 per bushel, respectively.

Stock markets closed slightly higher yesterday, as health-care shares rebounded from losses last week. Crude oil prices closed $0.80 higher yesterday, settling at $45.23 per barrel, as data came out that showed U.S. oil production is starting to slow down.

Daily Market News Summary Data 9/29/15

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From the Weekly Recap:

AUSTIN – (Sept. 28, 2015) For the week ending Sept. 26, 2015, Texas auctions quoted feeder cattle prices $4 to $12 lower. Wholesale beef values were lower, with Choice Grade losing $13.31 to close at $212.23 per cwt and Select Grade losing $10.35 to close at $209.80 per cwt. Net export sales for September 11-17 totaled 16,500 metric tons (MT). This is up 37 percent from the previous week and 36 percent from the previous four-week average. Increased purchases were reported for Japan, Hong Kong and South Korea. Export shipments of 12,300 MT were up 40 percent from the previous week and 25 percent from the prior four-week average. Shipment primarily went to Japan, South Korea and Hong Kong.

Cotton cash prices remained steady over the week closing at 58.62 cents per pound. October futures prices settled at 59.64 cents per pound, 0.11 cents lower than last week. For the reporting period of September 14 - 20, the USDA NASS Texas field office indicated that the cotton and soybean harvest experienced some delays in areas of the Lower Valley and South Texas due to wet field conditions. Cotton harvest is currently at 13 percent, which is three points behind previous year. Net Upland sales totaled 90,800 round bales (RB) for 2015-2016, which is down six percent from the previous week but up 18 percent from the prior four-week average. Increases were reported for Vietnam, Mexico and Turkey. Exports of 109,300 RB were up 84 percent from the previous week but down three percent from the prior four-week average. The primary destinations were Mexico, Indonesia and Vietnam.

Wheat cash prices were higher at the close of last week settling at $4.18 per bushel. Wheat futures prices also were higher gaining $0.09 to close at $5.00 per bushel. USDA NASS Texas field office reported that wheat seeding continued to progress, while some producers in areas of the High and Low Plains, the Cross Timbers and South Texas waited for soil moisture to improve. Seeding preparation for wheat and oats continued in other areas of the state. Net export sales for wheat were 282,800 MT, down 25 percent from the previous week and 23 percent from the prior four-week average. The top destinations were the Philippines, Japan and China. Exports of 614,900 MT were up 13 percent from the previous week and 27 percent from the prior four-week average. The primary destinations were China, Mexico and Colombia.

Corn cash and futures prices were higher at the close of last week. Cash prices gained $0.02 to close at $3.99 per bushel, and futures prices gained $0.04 to close at $3.89 per bushel. USDA NASS Texas field office reported that corn and sorghum continued to mature with harvest underway in areas of the High Plains and the Blacklands. Corn harvest is currently at 61 percent, five points behind previous year and three points behind normal. Corn net sales were 426,300 MT for delivery in 2015-2016 and down 20 percent from the previous week. Increases were reported primarily for Mexico, Colombia and Bangladesh. Exports of 795,400 MT were down one percent from the previous week. The primary destinations were Mexico, Japan and Colombia.

This week’s Drought Monitor for Texas showed worsening drought conditions for the state, with nearly 60 percent of Texas still in some stage of drought intensity, up 8.5 percentage points from last week. On the national level, drought conditions also worsened, with 54.81 percent of the U.S. experiencing abnormal dryness or some degree of drought.