Texas Daily Ag Market News Summary 12/05/16

Posted 6 years 175 days ago ago by

Feeder cattle auction reported prices $2 to $10 higher; Futures lower.

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

Cotton futures higher.

Grains and soybeans higher.

Milk futures lower.

Crude oil higher; Natural gas higher.

Stock markets higher.

Texas feeder cattle auctions reported prices $2 to $10 higher. January Feeder cattle futures were 28 cents lower, closing at $124.32 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. December Fed cattle futures were 40 cents lower, closing at $107.82 per cwt. Wholesale boxed beef values were higher, with Choice grade gaining $1.67 to close at $191.39 per cwt and Select grade gaining 53 cents to close at $173.23 per cwt. Estimated cattle harvest for the week totaled 115,000 up 1,000 from last week’s total and 4,000 from a year ago. Year-to-date harvest is up 3.6%.

Cotton prices were higher with cash prices gaining 0.25 cents to close at 70.87 cents per pound and December futures gaining 0.02 cents to close at 73.40 cents per pound.

Corn prices were higher with cash prices gaining 11 cents to close at $3.47 per bushel and December futures gaining 12 cents to close at $3.50 per bushel. Grain Sorghum cash prices were 20 cents higher, closing at $5.33 per cwt.

Wheat prices were steady with cash and December futures both remaining at $2.94 per bushel and $3.90 per bushel, respectively.

Milk prices were lower with December Class III futures losing 13 cents to close at $17.03 per cwt.

Stock markets were higher today, as investors believe that the Trump administration and Congress will work together to push tax cuts along with cutting back on government regulation. These two factors have combined to push financial shares up 14% since Election Day. January Crude oil futures were 11 cents higher, closing at $51.79 per barrel. Oil prices have been rising ever since The OPEC Nations announced that they have come to an agreement to cut crude oil production. OPEC has invited representatives from 14 other oil producing nations to Vienna this Saturday, in an attempt to expand their agreement and further cut production around the globe.

Daily Market News Summary Data 12/05/16

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From Weekly Recap:

AUSTIN – (Dec. 5, 2016) For the week ending Dec. 2, 2016, Texas feeder cattle auctions reported prices $2 to $18 higher. Texas Weekly Direct reported prices $1 to $6 higher. Wholesale Beef values were uneven, with Choice Grade gaining $1.72 to close at $189.72 per hundredweight (cwt) and Select Grade losing five cents to close at $172.70 per cwt. For the time period of Nov. 21-27, the USDA NASS Field Office reported that livestock were in good condition with plenty of grazing available and minimal supplemental feeding. Range and pasture conditions were declining in areas of South Texas and the Lower Valley due to lack of moisture. For the time period of Nov. 18-24, exporters reported net sales of 21,100 metric tons (MT) for 2016, which were up 63 percent from the previous week and 68 percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 15,000 MT, which were down 20 percent from the previous week but up three percent from the prior four-week average. The primary destinations were South Korea, Japan and Hong Kong.

Cotton prices were lower at the end of last week, with cash prices losing 0.75 cents to close at 69.87 cents per pound and December futures prices losing 1.29 cents to close at 71.98 cents per pound. The USDA NASS Field Office reported that cotton harvest was ongoing in the Plains and Trans-Pecos, and finishing up in areas of the Edwards Plateau. Net upland sales totaled 202,300 round bales (RB) for 2016-2017, which were down 21 percent from the previous week but up one percent from the prior four-week average. Increases were reported for Vietnam, China and Bangladesh. Exports totaled 131,300 RB, which were down one percent from the previous week but up seven percent from the prior four-week average. The primary destinations were China, Vietnam and Indonesia.

Wheat prices were lower at the end of last week, with cash prices losing 10 cents to close at $2.94 per bushel and December futures losing 22 cents to close at $3.90 per bushel. The USDA NASS Field Office reported that winter wheat seeding was starting to wind down in most areas of the state. Net sales totaled 483,500 MT for delivery in the 2016-2017 marketing year and were down 32 percent from the previous week and 16 percent from the prior four-week average. Increases were reported for Indonesia, Mexico and South Korea. Exports totaled 238,400 MT, which were down 37 percent from the previous week and 36 percent from the prior four-week average. The primary destinations were the Philippines, Morocco and Colombia.

Corn prices were lower at the end of last week, with cash prices losing eight cents to close at $3.36 per bushel and December futures losing 11 cents to close at $3.38 per bushel. The USDA NASS Field Office reported that harvest of row crops was nearing completion in most parts of the state. Net sales totaled 761,600 MT for 2016-2017, which were down 55 percent from the previous week and 50 percent from the prior four-week average. Increases were for Japan, South Korea and Mexico. Exports totaled 808,800 MT, which were up 40 percent from the previous week and 12 percent from the prior four-week average. The primary destinations were Mexico, South Korea and Japan.

Grain sorghum cash prices were higher, gaining three cents to close at $5.13 per cwt. Net sales totaled 227,000 MT, which were down 22 percent from the previous week and 34 percent from the prior four-week average. Increases were reported for China and unknown destinations. Exports totaled 59,200 MT, which were down 48 percent from the previous week and six percent from the prior four-week average. The destinations were China, Nigeria and Mexico.

Milk prices were higher at the close of last week, with December Class III milk futures gaining 23 cents to close at $17.16 per cwt.

This week’s U.S. Drought Monitor for Texas showed a slight worsening in drought conditions for the state, with 33.63 percent of Texas still in some stage of drought intensity. On the national level, drought conditions worsened slightly as well, with 56.31 percent% of the U.S. experiencing abnormal dryness or some degree of drought.