Texas Daily Ag Market News Summary 02/27/17

Posted 7 years 273 days ago by

Feeder cattle auction reported higher prices; Futures higher.

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

Cotton prices uneven.

Grains and soybeans lower.

Milk futures higher.

Crude oil higher; Natural gas higher.

Stock markets higher.

Texas feeder cattle auctions reported prices steady to $5 higher. March Feeder cattle futures were $2.15 higher, closing at $123.85 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. February Fed cattle futures were $1.62 higher, closing at $125.37 per cwt. Wholesale boxed beef values were higher, with Choice grade gaining $2.52 to close at $201.48 per cwt and Select grade gaining $1.60 to close at $197.08 per cwt. Estimated cattle harvest for the week totaled 116,000 up 14,000 from last week’s total and 12,000 from a year ago. Year-to-date harvest is up 11.6%.

Cotton prices were uneven with cash prices gaining 0.50 cents to close at 73.00 cents per pound and March futures losing 0.45 cents to close at 74.97 cents per pound.

Corn prices were lower with cash prices losing 3 cents to close at $3.58 per bushel and March futures losing 4 cents to close at $3.60 per bushel. Grain Sorghum cash prices were 7 cents lower, closing at $5.36 per cwt.

Wheat prices were lower with cash prices losing a nickel to close at $3.48 per bushel and March futures losing a dime to close at $4.44 per bushel.

Milk prices were higher with February Class III gaining a penny to close at $16.87 per cwt.

Stock markets finished higher today, pushed up by gains in the financial and energy sector. Major moves in U.S. indexes were relatively muted as investors await speeches from President Donald Trump and from key Federal Reserve officials. April Crude oil futures closed 6 cents higher, ending at $54.05 per barrel. Crude oil prices closed slightly higher today as investors continue to struggle with the overwhelming level of compliance OPEC nations are putting into the production cutting agreement in contrast with the continued growth in U.S. crude production.

DailyMarket News Summary Data 02/27/17

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From Weekly Recap:

AUSTIN – (Feb. 27, 2017) For the week ending Feb. 24, 2017, Texas feeder cattle auctions reported prices steady to $10 higher. Texas Weekly Direct reported prices $1 to $3 higher. Wholesale Beef values were higher, with Choice Grade gaining $7.15 to close at $198.96 per hundredweight (cwt) and Select Grade gaining $5.67 to close at $195.48 per cwt. For the time period of Feb. 13-19, the USDA NASS Field Office reported that the need to provide supplemental feed has decreased, but livestock producers in the Northern Low Plains were continuing the practice. Livestock were mostly in good condition. Pastures conditions are mostly fair to good across the state, but the lack of rain in South Texas and the Lower Valley resulted in a deterioration of conditions. For the time period of Feb. 10-16, exporters reported net sales of 10,400 metric tons (MT) for 2017, and were down 22 percent from the previous week and 41 percent from the prior four-week average. Increases were reported primarily for Mexico, Japan and Canada. Exports totaled 13,300 MT, which were down 9 percent from the previous week and 6 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.

Cotton prices were higher at the end of last week, with cash prices gaining 1.00 cents to close at 72.50 cents per pound and March futures gaining 1.90 cents to close at 75.42 cents per pound. The USDA NASS Field Office reported that field work in preparation for cotton planting continued in areas of the Blacklands. Net upland sales totaled 367,200 round bales (RB) for 2016-2017, and were up 65 percent from the previous week and 21 percent from the prior four-week average. Increases were reported primarily for Vietnam, China and Turkey. Exports totaled 340,600 RB, which were down 1 percent from the previous week and from the prior four-week average. The primary destinations were China, Vietnam and Turkey.

Wheat prices were higher at the end of last week, with cash prices gaining 6 cents to close at $3.53 per bushel and March futures gaining 2 cents to close at $4.54 per bushel. The USDA NASS Field Office reported that Winter Wheat was rated mostly fair to good due to the recent rains and warm weather. Net sales totaled 451,300 MT, which were down 14 percent from the previous week and 23 percent from the prior four-week average. Increases were primarily reported for Japan, Algeria and Mexico. Exports totaled 629,000 MT, and were up 82 percent from the previous week and 61 percent from the prior four-week average. The destinations were primarily Japan, Algeria and Mexico.

Corn prices were lower at the end of last week, with cash prices losing 3 cents to close at $3.61 per bushel and March futures losing a nickel to close at $3.64 per bushel. The USDA NASS Field Office reported that corn was being planted across most of the state, but was slowed in areas of the Upper Coast and the Coastal Bend due to recent rains. Net sales totaled 743,100 MT for 2016-2017, and were down 5 percent from the previous week and 30 percent from the prior four-week average. Increases were reported primarily for Japan, Colombia and Taiwan. Exports totaled 1,205,300 MT, which were down 4 percent from the previous week but up 17 percent from the prior four-week average. The primary destinations were Japan, Mexico and Taiwan.

Grain sorghum cash prices were lower at the end of last week, losing 8 cents to close at $5.43 per cwt. Net sales totaled 86,000 MT for 2016-2017, and were down 36 percent from the previous week but up 24 percent from the prior four-week average. Increases were reported for China and Mexico. Exports totaled 176,600 MT, which were up 15 percent from the previous week and 31 percent from the prior four-week average. The destinations were China, Mexico and Indonesia.

Milk prices were lower at the close of last week, with February Class III milk futures losing a penny to close at $16.86 per cwt.

This week’s U.S. Drought Monitor for Texas showed a slight improvement in drought conditions for the state, with 8.43 percent of Texas still in some stage of drought intensity, down 3.43 percentage points from last week. On the national level, drought conditions improved slightly, with 31.53 percent of the U.S. experiencing abnormal dryness or some degree of drought.