Texas Daily Ag Market News Summary 08/16/17

Posted 7 years 103 days ago by

Feeder cattle auctions steady; Futures lower.

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

Cotton futures lower.

Grains and soybeans lower.

Milk futures higher.

Crude oil lower; Natural gas lower.

Stock markets higher.

Texas feeder cattle auctions reported steady prices. September Feeder cattle futures were $3.63 lower, closing at $143.12 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. October Fed cattle futures were 73 cents lower, closing at $108.32 per cwt. Wholesale boxed beef values were lower, with Choice grade losing $1.44 to close at $197.51 per cwt and Select grade losing 83 cents to close at $195.04 per cwt. Estimated cattle harvest for the week totaled 350,000 down 3,000 from last week’s total and up 11,000 from last year’s total. Year-to-date harvest is up 3.3%.

Cotton prices were lower with cash prices remaining at 67.75 cents per pound and October futures losing 0.13 cents to close at 67.55 cents per pound.

Corn prices were lower with cash prices and September futures both losing 2 cents and both closing at $3.53 per bushel. Grain Sorghum cash prices were a nickel lower, closing at $5.26 per bushel.

Wheat prices were lower with cash prices losing 6 cents to close at $3.60 per bushel and September futures losing 7 cents to close at $4.20 per bushel.

Milk prices were lower with September Class III gaining 21 cents to close at $17.05 per cwt.

Stock markets were higher today, behind increases in retail shares after Target raised their projected yearly earnings and reported strong sales-growth that surpassed analysts original expectations. September Crude oil futures were 77 cents lower, closing at $46.78 per barrel. Trouble in crude oil markets continued today, after data released showed that the largest weekly decline in oil stockpiles was drowned out by increasing U.S. production, pushing prices down to a three-week low.

Daily Market News Summary Data 08/16/17

If you are interested in receiving this daily report, please subscribe here.

From Agri-Pulse:

WASHINGTON, August 10, 2017 - Corn and soybean farmers hoping for a bullish crop report today had their hopes dashed by new predictions of strong soybean and corn yields that sent futures prices tumbling on the Chicago Board of Trade.

“This is a pretty big shock to the market,” said John Newton, the director for market intelligence at the American Farm Bureau Federation.

Market watchers were generally expecting the new forecasts in USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report to push yield estimates down for both crops, Newton said, but it was the exact opposite.

The new USDA report – the first survey-based forecasts for this year’s corn, soybeans, wheat and cotton – is predicting the average corn yield at 169.5 bushels per acre. That slightly below the August prediction, but up sharply from market expectations of about 166 bushels, Newton said.

“We’re right on the trend line in terms of yield, but that puts us above the trade expectations,” USDA Chief Economist Rob Johansson said today about the new corn numbers.

The report pegged total corn production at 14.2 billion bushels, a 102 million bushel decrease from the July projection. If achieved, that would represent a 7 percent drop from last year, but still the third highest yield and production on record for the U.S.

The new yield forecast for soybeans this year is 49.4 bushels per acre, up from both the July prediction and market expectations which averaged about 47.5 bushels.

USDA’s National Agricultural Statistics Service interviewed more than 21,000 farmers in the largest farming states that make up 75 percent of U.S. production.

Perhaps even more startling was the new USDA forecast for yet another record year for soybean production. U.S. farmers are now forecast to produce 4.381 billion bushels of soybeans for the 2017-18 marketing year. That’s up from the 4.26-billion-bushel prediction last month and 4.307 billion bushels that farmers produced last year.

“It’s just completely bearish news across the board for corn and soybeans at a time when farm income and commodity prices are already so low,” Newton told Agri-Pulse.

The reports sent commodity prices in a tailspin. September corn finished the day 15 cents lower; September soybeans dropped 32 cents.

Thursday’s reports also projected a 20 percent increase in cotton production from last year and a one percent decrease in wheat production from July estimates.

This month’s WASDE is based on pre-Aug. 1 data, so the situation could still change, according to a Farm Bureau analysis released today.

“With the 2017/18 crop still in the ground, a significant amount of uncertainty remains,” the AFBF report stressed. “Given that many fields are far from maturity, these yields and production numbers are subject to revision in the coming months.”

USDA’s Johansson agreed, saying: “We still have a month of weather to push the soybean numbers around a little bit.”

For now, though, the situation is grim.

“There’s still a lot of uncertainty left, but I certainly think that a lot of folks were hoping to see yields come down a little bit and provide an opportunity to lock in some more favorable prices for some of that new crop,” Newton said. “That’s certainly not the case after today’s report.”