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Oct
03
2014

Texas Daily Ag Market Summary 10/3/14

Posted 9 years 179 days ago by

  • Feeder cattle steady to $15 higher; futures higher.
  • Fed cattle cash trade inactive; formula trades $2 higher; futures higher; beef prices higher.
  • Cotton cash prices unchanged; futures lower.
  • Grains and soybeans higher.
  • Crude oil higher; natural gas lower.
  • Stock markets near unchanged.

 

Texas feeder cattle auctions quoted prices steady to as much as $15 higher per cwt, with the largest increases noted on calves and feeders weighing less than 550 pounds.  Feeder cattle futures were higher.  Limited supplies, weak grain markets, historically-high fed cattle and demand for stockers to put out on winter grazing all continue to support the feeder market. The fed cattle cash trade remained at a standstill in all major U.S. cattle feeding regions with asking prices holding firm at about $165, up $6 from the last established market two weeks ago and $2 above October futures. Wholesale beef prices were higher. Estimated cattle harvest through Thursday totaled 456,000 head, up 5K from last week, but down 29K from last year. Fed cattle futures were higher. Beef export sales totaled 12,000 metric tons (MT), down 2% from the previous week and 8% lower than the prior four-week average. Japan, Mexico and South Korea were the leading buyers. Export shipments of 13,700 MT were up 3% from a week earlier and 5% higher than the average, with Japan, Hong Kong and Mexico the top destinations.

Cotton cash prices were unchanged, but futures were lower following a mixed exports report that showed better than expected sales, but weaker shipments. Cotton export sales for the week totaled 226,400 bales, up 45% from the previous week and more than three times the prior four-week average. The primary buyers were Turkey, China and Thailand. Export shipments of 77,600 bales were the lowest weekly total so far this marketing year, down 12% from the previous week and 18% lower than the average. Mexico, Vietnam and Indonesia were the top destinations. Export commitments (shipments plus outstanding sales) reached 57% of the USDA export forecast compared to 41% at this time last year.

Wheat prices were higher after a stronger than expected export report. Wheat export sales totaled 741,000 MT, up 92% from the previous week and 90% above the prior four-week average. Nigeria, Vietnam and Ecuador were the primary buyers. Exports of 554,700 MT were up 20% from the previous week, but down 13% from the average. Taiwan, Nigeria and Mexico were the leading destinations. There have also been reports of some winter wheat planting delays, here and abroad.

Corn and grain sorghum prices were higher in spite of mostly bearish news. Ethanol prices have fallen along with crude oil and gasoline and this week’s export numbers were disappointing. Corn export sales totaled 638,000 MT, down 24% from the previous week, with Canada, South Korea and Columbia the top buyers. Exports of 620,400 MT were down 40% from a week earlier. The leading destinations were Japan, Mexico and Columbia.

Stock markets were near unchanged yesterday, with the Dow slightly lower and other major indexes slightly higher. Stocks dropped again early in the day, but then recovered to close out the session pretty close to where they opened. Small-cap stocks posted the largest increases with the Russell 2000 index up 1% on the day. Wednesday’s sharp drop stirred up some buying interest and many traders are looking for a stronger U.S. employment report today. Weekly unemployment claims dropped more than expected, but, one down side, so did U.S. factory orders.


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.


 






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