Apr 11 2016

Texas Daily Ag Market News Summary 04/11/16 Posted 8 years 18 days ago by

Feeder cattle auctions reported prices $3 to $10 lower; Futures lower.

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

Cotton higher.

Grains and Soybeans lower.

Milk futures higher.

Crude oil higher; Natural gas lower.

Stock markets lower.

Texas feeder cattle auctions reported prices $3 to $10 lower. Feeder cattle futures were $0.35 lower, closing at $155.55 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. Whole sale boxed beef values were higher with choice grade gaining $1.65, to close at $216.45 per cwt and select grade gaining $1.80 to close at $207.05 per cwt. Fed cattle futures  were $0.30 lower, closing at $134.07 per cwt. Estimated cattle harvest for the week totaled 111,000 head up on par with last week and up 2,000 from last year’s total.

Cotton prices were higher with cash prices gaining 0.75 cents to close at 56.62 cents per pound and May futures gaining 0.64 cents to close at 60.71 per pound.

Corn prices were lower with cash and futures prices both losing $0.05 to close at $3.59 and $3.57 per bushel, respectively.

Wheat prices were lower with cash and futures prices both losing $0.16 to close at $3.69 and $4.44 per bushel, respectively.

Milk prices were higher with April Class III Milk futures gaining $0.02 to close at $13.76 per cwt.

Stock Markets were lower today, as the first quarter earnings report, projected less than expected corprate earnings. Crude oil prices were higher, with May Crude oil futures gaining $0.64 to close at $40.36 per barrel.

Daily Market Summary Data 04/11/16

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From Agri-Pulse:

WASHINGTON, April 11, 2016 - More than 200 farm groups and food companies came together Monday to deliver a letter to congressional leaders, urging approval of the Trans-Pacific Partnership.

“The TPP is critical to the livelihood of the U.S. food and agriculture sector because it will create conditions that encourage economic growth and increased employment in rural areas and throughout the supply chain,” the diverse coalition of groups and companies such as the Illinois Soybean Association, the National Potato Council, the Ohio AgriBusiness Association and Ocean Spray Cranberries Inc. said in the letter.

Lawmakers are increasingly torn over supporting the TPP, especially as anti-trade-deal rhetoric grows on the campaign trail from both Republican and Democratic presidential candidates. But the potential gains from TPP - and the potential losses from even delaying ratification - are too great not to approve it, the agricultural groups and companies wrote. The letter was addressed to House Speaker Paul Ryan, Minority Leader Nancy Pelosi, Senate Majority Leader Mitch McConnell and his Democratic counterpart Harry Reid. 

Still, Ryan doesn't believe there's enough support now for the TPP, a spokeswoman told Agri-Pulse. The Wisconsin Republic recently told some U.S. business leaders that the chance of Congress passing TPP in a lame duck session is virtually nonexistent. A Hill aide on Friday said that Ryan believes that “at present, the votes aren't there.” 

U.S. Trade Representative Michael Froman said last week he was aware of the strong opposition to the TPP on Capitol Hill, but said he was working hard to show the benefits of the deal to lawmakers.

The signers of the letter quoted a prediction from the Peterson Institute for International Economics that says delaying TPP for a year could cost U.S. producers $94 billion.

“With net farm income at its lowest level since 2002, the costs of inaction are too high for us to ignore,” the groups and companies wrote. “We must act now.”

The National Pork Producers Council said Monday it believes the 12-country TPP deal could be the “biggest commercial opportunity ever for U.S. pork producers.”

The National Cattlemen's Beef Association is equally as committed to getting Congress to approve the TPP.

Japan, a TPP member and the largest market for U.S. beef, has the potential to become even larger once the trade deal is ratified, according to NCBA. But right now U.S. beef is losing that growth opportunity to Australia, which already has a bilateral deal with Japan.

“On April 1, Australian beef producers got a tax break on beef exports to Japan and we paid for it in lost sales,” NCBA President Tracy Brunner said in a statement released Monday. “We know Japanese consumers want U.S. beef, but just like domestic consumers, they make their buying decision based on price and appearance. Until we level the playing field through TPP, U.S. beef is going to be at an economic disadvantage in Japan.”

Overall, the American Farm Bureau Federation estimates the TPP could increase net farm income by $4.4 billion annually.

National Association of State Departments of Agriculture President Greg Ibach joined the chorus of pro-TPP voices Monday, saying, “TPP will open the door to increased farm income for farmers, ranchers, and value-added food producers of all sizes and production methods. This is an opportunity which Congress cannot ignore.”

Beyond just reducing tariffs, provisions in the TPP would “foster transparency” on biotech grain approval and prevent lengthy delivery delays when low levels of unwanted biotech traits are detected in shipments, the National Grain and Feed Association said Monday.