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Apr
09
2014

TDA Daily Agriculture Market Summary 4/9/14

Posted 4 years 42 days ago ago by Texas Department of Agriculture

  • Feeder cattle steady to $4 higher; futures higher.
  • Fed cattle cash trade inactive; futures higher; Choice beef prices lower, Select higher.
  • Cotton higher.
  • Grains and soybeans mostly higher, except rice futures lower.
  • Crude oil and natural gas higher.
  • Stock markets modestly higher.

 

Texas auctions reported feeder cattle prices steady to $4 higher as supply/demand fundamentals remain very supportive. Feeder cattle futures were higher in spite of higher corn futures. The fed cattle cash trade remained inactive yesterday with asking prices still at $150 per cwt, up $2 from last week’s average. No word yet on early packer bids. The TCFA daily volume and price summary shows 79,800 head in formula trades this week, up from 72,200 a week ago. Wholesale boxed beef values were lower for Choice, but higher for Select-grade offerings. Estimated cattle slaughter through Tuesday was running ahead of last week, but behind a year ago. Fed cattle futures were higher. The spot month April contract expires at the end of the month and futures are still trading at a $5 discount to cash.

Cotton cash prices and futures were higher yesterday in anticipation of a downward adjustment in projected ending stocks in today’s USDA supply/demand report. Higher equity markets were also supportive.

Wheat prices were higher ahead of today’s USDA report. Traders expect projected ending stocks to come in a little higher than last month’s estimate, but lower than a year ago. World ending stocks are expected to be near unchanged. Ongoing tension between Ukraine and Russia were also a factor. The Ukraine Ag Ministry reported that year-to-date grain exports are higher than a year ago, but reports also noted that the political situation remains tense. Among other things, Russia’s state-run gas company increased energy prices for Ukraine by around 80% over the past week. National numbers from USDA’s weekly crop progress report, delayed until after markets closed Tuesday, showed the winter wheat crop in about the same condition as this time last year. Overall, 29% of the crop was rated in poor and very poor condition, compared to 30% a year ago, and 35% was rated good to excellent, compared to 36% last year.

Corn and grain sorghum prices were higher. Analysts expect USDA to make small downward adjustments in projected U.S. and world corn ending stocks. The possibility of planting delays in some parts of the country remains supportive.

Stock markets closed higher yesterday, with the Nasdaq index posting it a solid increase following three days of losses. The sole economic report on the day was a small business sentiment index that came in higher than a month ago. After markets closed, Alcoa kicked off first quarter earnings season with higher than expected earnings per share, excluding one-time write-offs for capacity adjustments. However, revenues came in lower than expected.


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. Commentary is the author’s alone and does not in any way convey official TDA policies.