Sep 26 2014

Texas Daily Ag Market Summary 9/26/14 Posted 9 years 209 days ago by

• Feeder cattle steady to $5 higher; futures mixed.
• Fed cattle cash trade inactive; formula trades lower; futures higher; beef prices lower.
• Cotton cash prices unchanged; futures modestly lower.
• Grains and soybeans mostly lower.
• Crude oil lower; natural gas higher.
• Stock markets sharply lower.

 

Texas feeder cattle auctions quoted prices steady to $5 higher per cwt, with limited numbers of yearlings and increasing volumes of unweaned/short-weaned new-crop calves. Feeder cattle futures were mixed, from 80 cents higher to 30 cents lower. The fed cattle cash trade remained at a standstill across all major U.S. cattle feeding regions, with a $3 spread between asking prices and packer bids. Wholesale boxed beef values were lower again yesterday. Estimated cattle harvest through Thursday totaled 451,000 head, only 5K below last week, but down 35K from a year ago. Fed cattle futures were higher. Beef export sales for the week totaled 12,200 metric tons (MT), down 22% from the previous week and 3% from the prior four-week average. Hong Kong, South Korea and Mexico were the leading buyers. Export shipments of 13,400 MT were down 10% from a week earlier, but up 1% from the average, with Japan, Hong Kong and South Korea the top destinations.

Cotton cash prices were unchanged, but futures were modestly lower as markets continued to absorb news of lower Chinese import quotas and higher production in India. Export data were mixed, with strong sales, but weak shipments. Cotton export sales totaled 155,700 bales, more than double the previous week, up 68% from the prior four-week average and well above the weekly average needed to meet USDA projections for the marketing year. China, Vietnam and Turkey were the primary buyers. Shipments of 87,900 bales were down 16% from a week ago, 10% below the average and less than half the weekly average needed to meet expectations. The top destinations were China, Mexico and Vietnam. Export commitments, shipments plus pending sales, are 55% of the USDA export forecast for the current marketing year, compared to 30% at this time a year ago.

Wheat cash prices were unchanged, but futures were mostly lower because of a stronger dollar and beneficial rains on the U.S. Southern Plains. Wheat export sales came in higher than expected at 396,300 MT, up 26% from last week and 1% higher than the prior four-week average. Brazil, Mexico and Japan were the leading buyers. Shipments of 474,400 MT were down 39% from a week ago and 26% lower than the average. Nigeria, the Philippines and Mexico were the top destinations.

Corn and grain sorghum prices were lower due to weakness in other commodities, the stronger dollar and harvest pressure from what is expected to be a record-large corn crop. Export data were supportive. Corn export sales for the week totaled 836,400 MT, up 27% from a week ago. Mexico, Japan and Peru were the primary buyers. Export shipments of 1,038,600 MT were up 44% from last week, with Mexico, Japan and Egypt the leading destinations.

Stock markets were lower due to growing anxiety over global conditions, brought to the forefront by reports that Russian legislators are drafting a proposal to allow seizure of foreign assets. The D-J Industrial Average posted its biggest daily loss since July 31 and other indexes fell by even larger percentages. There were also lingering concerns that the U.S. Federal Reserve would soon begin raising interest rates, but one fund manager commented that he was not too concerned about that since it would also indicate that the economy is improving.

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.