Texas Daily Ag Market News Summary 01/11/16

Posted 8 years 321 days ago by

Feeder cattle auctions prices $2 to $10 higher; Futures higher.

Fed cattle cash trade inactive; Futures lower; Beef prices higher.

Cotton higher.

Grains and soybeans lower.

Crude oil lower; Natural gas lower.

Stock markets steady.

Texas feeder cattle auctions reported priced $2 to $10 higher per cwt. Feeder cattle futures were $0.03 higher, closing at $159.45 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. Whole sale boxed beef values were higher with choice grade gaining $3.12 to close at $235.32 per cwt; select grade gained $2.09 to close at $229.07 per cwt. Fed cattle futures were $0.53 lower, closing at $132.22 per cwt. Estimated cattle harvest for the week totaled 110,000 head, up 13,000 from last week and on par with last year’s total.

Cotton prices were higher with cash prices gaining 0.25 cents to close at 60.12 cents per pound; March futures prices were higher, gaining 0.10 cents, to close at 61.50 cents per pound.

Corn prices were lower with cash prices losing $0.06 to close at $3.55 per bushel; March futures prices lost $0.05 to close at $3.52 per bushel. Grain sorghum cash prices were lower, losing $0.08 to close at $5.40 per cwt.

Wheat prices were lower with cash and futures prices both losing $0.11, to close at $3.72 and $4.62 per bushel, respectively.

Stock markets were steady today, as markets began to level off after the worst start of the year on record for major U.S. Indexes. Crude oil prices were lower, losing $1.75 to close at $31.41 per barrel.

Daily Market Summary Data 01/11/16

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From Agri-Pulse:

ORLANDO, Fla., Jan. 10, 2016 - Darci Vetter, the top agricultural negotiator for the Office of the U.S. Trade Representative, says the longer Congress waits to take action on the Trans-Pacific Partnership (TPP), the greater the potential loss for U.S. exporters and for the country's farmers and ranchers.

During a press conference Sunday at the American Farm Bureau Federation convention in Orlando, Florida, a reporter noted that some members of Congress have suggested the trade pact is so politically fraught it may have to wait for consideration until the lame duck session following the November election or until after President Obama leaves office.

Vetter pointed out that the U.S. was one of 12 Pacific Rim nations that shook hands on the TPP agreement in October, and that until the pact is confirmed by Congress, those countries are free to make bilateral deals, “creating preferential access we won't enjoy until we get to finish line.”

She noted that the U.S. beef exporters have been slowly taking back market share in Japan following restrictions placed on American products related to mad cow disease. Japanese importers, however, pay a 10 percent lower tariff on Australian beef the U.S. meat.

“On day one, when TPP takes effect, we're back to a level playing field with Australia,” she said, adding that a similar situation exists with U.S. dairy products and another TPP partner, Vietnam. With TPP, Vetter said, “every agricultural product was liberalized in some way.”

Vetter said she would not comment on the stances the different presidential candidates have taken on TPP, but she said the trade benefits of the agreement are obvious and “the numbers stand for themselves.”

But she said “knowing you have the full support of this administration” is good reason for TPP supporters in Congress to move quickly.

“If they know we're losing ground to other partners, why wait,” she said.

Vetter was also asked whether a plan under consideration at USDA that would provide new subsidies for cotton growers, who are dealing with a sharp decline in prices, might run afoul of an agreement the U.S. has with Brazil to cut back on government support. Under the cotton growers' plan, USDA would allow cottonseed to qualify as an oilseed under the new Price Loss Coverage and Agriculture Risk Coverage programs that were created by the 2014 farm bill.

Vetter said that although the National Cotton Council has introduced the plan to USTR, “at this point we are not in active consultation with USDA.” She said the role of USTR would be to provide technical assistance to see if the plan is consistent with international trade obligations.

Agriculture Secretary Tom Vilsack last week said he would decide “very soon” whether to provide the new subsidies, but he suggested that the industry's proposal may lack legal authority.