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Feb
26
2014

TDA Daily Market Summary 2/26/2014

Posted 4 years 264 days ago ago by Texas Department of Agriculture

  • Feeder cattle mostly steady to $2 higher, few lower; futures higher.
  • Fed cattle cash trade inactive; futures higher; beef prices higher.
  • Cotton lower.
  • Grains mostly higher, except rice lower; soybeans higher.
  • Crude oil and natural gas lower.
  • Stock markets modestly lower.

 

Texas auctions reported feeder cattle prices mostly steady to $2 higher, though one auction was steady to $3 lower on steers, but higher on feeder heifers. And that one sale barn noted that the decline was from record-high prices the week before. Feeder cattle futures were higher. The fed cattle cash trade remained inactive yesterday, with feedlots reportedly asking $147-$148 versus initial packer bids at $144. Week-to-date estimated cattle slaughter totaled 216,000 head, up from both last week and last year. Wholesale beef cutout values were higher, which help push fed cattle futures higher.

Cotton cash prices and futures were lower. There was little fresh news to sustain continued price gains, and as result, traders refocused their attention on the large global supplies, an increase in the supply of cotton certified as deliverable against futures contracts and concerns about what China will do with its massive government reserves. Expectations for higher U.S. planted acreage this year and higher production also cast shadow over the market. One wire service analysis said that “cotton just seemed to run out of willing buyers,” which triggered speculative selling.

Corn and grain sorghum prices followed soybeans higher yesterday, though the ample world supplies continued to keep a lid on gains. Wire service reports noted that, “Demand is strong, but corn is continuing to look at a very large domestic supply, which may mute any attempts at a sustained rally.”

Wheat prices were sharply lower early in the day after Egypt canceled a large purchase of U.S. soft red winter wheat. One commentary said it looked like the bottom was getting ready to fall out of the wheat market. However, prices rebounded to end the day higher, mostly due to concerns that this latest round of cold weather might cause further freeze damage on the U.S. Plains. A shortage of rail cars in Canada for grain transport also remains a concern.  

The DTN fertilizer price survey showed higher prices for all eight of the fertilizers included in the report. “Once again leading the way higher was urea. The nitrogen fertilizer was 6% higher compared to a month previous and now has an average price of $519 per ton. The other fertilizer with a notable price change to the high side was DAP. The phosphorus fertilizer was up 5% from last month and had an average price of $536 per ton.”

Stock markets were modestly lower yesterday “as traders eyed another round of lukewarm economic data.” A home price index declined for December, as expected, with weather blamed for the decline. The Conference Board’s consumer confidence index for February fell more than expected. Home Depot and Macy’s posted better than expected quarterly earnings, “but disappointing sales.”


Disclaimer: The information compiled in the Daily Market Summary is obtained from a variety of sources, including those available on the Internet, that are believed to be reliable and accurate, but are in no way guaranteed. This information is intended to provide only a summary of market trends and a daily snapshot of agricultural markets and economic indicators. It should not be relied upon as a sole source of market information.