(800)-Tell-TDA
835-5832
Jun
02
2014

Texas Daily Ag Market Summary 6/2/14

Posted 4 years 142 days ago ago by Texas Department of Agriculture

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

 

Feeder cattle prices reported by Texas auctions were steady to $2 higher, with one location $3-$10 higher. Most also noted light receipts due to the Memorial Day rain that  limited cattle movement. Feeder cattle futures were unchanged on the nearby August contract, but higher on deferred months. Fed cattle cash prices moved higher at the end of the week, but remained lower than a week ago. Beef prices were lower on Friday. Estimated cattle slaughter remained well below both last week and a year ago. Cumulative slaughter so far this year is running 6.4%  behind last year. Fed cattle futures were lower. Beef export sales for the week totaled 12,700 metric tons (MT), up 5% from the previous week and up 4% from the prior four-week average. The leading buyers were Mexico, South Korea and Hong Kong. Export shipments hit a new high for the marketing year at 16,400 MT, up 17% from the previous week and 23% higher than the average. Japan, Hong Kong and South Korea were the top destinations.

Cotton cash prices were unchanged and futures were mostly lower, with only the nearby July contract posting a modest increase. The market remained under pressure from the Memorial Day weekend rains slowed down planting in some areas, but also boosted the potential for this year’s crop. Cotton export sales totaled 61,000 bales of old crop, down 83% from the previous week and 50% from the average. China, Mexico and Turkey were the primary buyers. Sales of new-crop cotton for the next marketing year were 114,300 bales, down 28% from a week earlier, but up 24% from the average. Shipments of 216,600 bales were up 14% from the previous week, 5% higher than the average and well above the weekly average needed to meet USDA projections for the marketing year. China, Turkey and Vietnam were the top destinations.

Wheat prices were lower on Friday as somewhat-beneficial rains in the U.S., ample world supplies and mixed export data continued to pressure the market. Speculative liquidation of the underlying futures contracts were also a factor. Wheat exports sales for the 2013/14 marketing year were a negative 52,400 MT as cancellations outweighed new sales. Sales for the next marketing year of 531,500 MT were more than double both the previous week and the prior four-week average. Brazil, South Korea and Japan were the leading buyers. Export shipments totaled 529,100 MT, up 4% from the previous week, but 10% below the average. Japan, China and Indonesia were the top destinations.

Corn and grain sorghum prices were also lower mostly due to favorable weather in much of the Corn Belt. Export data were supportive and likely limited the potential decline. Corn old-crop export sales totaled 621,300 MT, up 22% from the previous week and up 27% from the prior four-week average. Mexico, Egypt and Israel were the leading buyers. New crop sales of 90,900 MT were up 46% from a week earlier and up 49% from the average. Export shipments totaling 1,210,200 MT were up 4% from the previous week and 1% higher than the average, with Mexico, Egypt and Japan the top destinations.

The U.S. EPA is expected today to formally announce “the incredibly controversial first-ever federal attempt to regulate and limit greenhouse gases (GHG).”  Then, later in the week, the agency will likely announce its final decision on ethanol and other biofuel blending requirements for the rest of 2014 and 2015. The GHG rules target existing coal-fired power plants.

Stock markets closed mostly slightly higher on Friday in spite of mostly-bearish economic news. The Commerce Department reported that consumer spending fell by 0.1% during April, compared to expectations for a 0.2% increase. Person income was up 0.3%, matching expectations. A major consumer sentiment index came in lower than expected. On a more bullish note, a Midwest manufacturing index was higher 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.