Oct 14 2014

Texas Daily Ag Market Summary 10/14/14 Posted 9 years 196 days ago by

Federal offices were closed yesterday in observance of the Columbus Day holiday so some data were not available for this morning’s report.

• Feeder cattle mostly steady; futures higher.
• Fed cattle cash trade inactive; formula trades higher; futures higher; beef prices higher.
• Cotton cash prices not available; futures higher.
• Grains and soybeans cash prices not available; futures higher.
• Crude oil lower; natural gas higher.
• Stock markets sharply lower.

Texas feeder cattle auctions quoted prices mostly steady, with a few $5 higher. Feeder cattle futures were higher. The fed cattle cash trade was inactive on Monday after rising $2 last week to a new record-high $164 on only a few hundred head of confirmed sales. Initial asking prices this week are reported at $166-$167. The vast majority of Texas fed cattle are sold on a formula basis. Those prices were up about $1 per cwt (dressed basis) last week and were about 50 cents higher yesterday. Wholesale boxed beef values were higher. Estimated cattle harvest on Monday totaled 114,000 head, unchanged from last week, but down 8K from a year ago. Fed cattle futures were higher on prospects for higher cash markets this week.

Cotton cash prices were not available because of the holiday, but futures were higher, mostly due to weather concerns. Forecasts included a wind advisory on the Texas High Plains and storms in the Delta and Southeast.

Wheat futures were higher, with spillover support from corn and soybeans, plus a healthy dose of optimism that export customers are turning their attention back to U.S. wheat. Rain is causing some planting delays in parts of the Midwest, but bringing much-needed moisture to western growing areas. A weaker dollar and dryness in Australia were also supportive.

Corn futures were higher as wet weather in the Corn Belt continues to support prices. This year’s corn crop is behind normal development and weather forecasts are calling for continued wet and cool conditions in much of the Midwest. Weather markets like this are highly speculative and very volatile. Continued wetness could continue to support markets, but a break in the weather could also cause them to drop, too. We’re still expecting a record-large corn crop so it would not be surprising to see the market drop more before it finds a bottom.

Stock markets were sharply lower again yesterday with the major indexes down another 1.5%. The Dow was steady to higher until early afternoon before a sell-off late in the session drove values sharply lower. Risk reduction remained the major theme as investors remain concerned about global growth and the timing of the U.S. Federal Reserve’s interest rate hikes. The Fed’s low interest policies have supported stocks since the credit crisis and many investors fear that stocks will drop when it starts raising rates. In addition, energy stocks declined due to dropping crude oil prices and airlines took a hit on Ebola fears.

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.