Nov 04 2014

Texas Daily Ag Market Summary 11/4/14 Posted 9 years 170 days ago by

• Feeder cattle  mostly steady, few $5-$8 higher; futures higher.
• Fed cattle cash trade inactive; formula trades higher; futures higher.
• Choice beef prices lower; Select higher.
• Cotton cash prices unchanged; futures mostly higher.
• Wheat, rice higher; corn, soybeans lower.
• Crude oil lower; natural gas higher.
• Stock markets were near unchanged.

Texas feeder cattle auctions quoted prices mostly steady, with a few locations steady to $5-$8 higher. Oklahoma City noted the best demand “for light cattle suitable for early wheat as well as heavier weight thin fleshed or long weaned cattle.” Feeder cattle futures were higher following a decline in corn futures. The fed cattle cash trade was inactive on Monday after dropping $2 last week. Reports have early asking prices at $170 per cwt. Formula sales, mostly from Friday, were also down $2. Wholesale boxed beef prices were lower for Choice offerings, but higher for Select-grade cuts.  Estimated cattle harvest on Monday totaled 113,000 head, unchanged from last week, but down 4K from a year ago. Fed cattle futures were higher.

Cotton cash prices were unchanged and futures were mostly higher, with only the nearby December contract posting a modest decline. A cold front is expected to roll across Texas and into the Southeast starting Monday night, bringing rain and cooler temperatures to the region and likely bringing harvest to a halt. Rainfall accumulations of 1 to 3 inches are expected, with as much as 4 to 5 inches possible in some locations. A freeze is possible for parts of the South Plains and Panhandle Wednesday morning. That would benefit growers who have waited for a freeze to defoliate cotton, rather than applying chemical defoliants. Reports noted that a cyclone is also expected to hit some of India’s major cotton-producing areas. USDA NASS reported that the U.S. cotton harvest was 50% complete, ahead of last year’s 41%, but slightly behind the 51% average for this date. The remaining acreage was rated in 48% good to excellent conditions, unchanged from a week ago. The Texas cotton harvest was 31% complete, well behind the normal 45%.

Corn and grain sorghum prices were lower. Weekly export inspections were termed disappointing at 425,900 metric tons (MT), down 42% from a week ago and 47% below a year ago. Traders were also expecting the weekly crop progress report, issued after markets closed, to show a solid advance in harvest progress. And they were not disappointed. Harvest progress jumped to 65% complete, on the high end of expectations, but still well behind the 71% at this time last year and 73% average. Texas corn was 86% harvested, compared to 96% on average. The U.S. grain sorghum harvest was 65% complete, compared to a 70% average for this date. Texas grain sorghum was 79% harvested, slightly ahead of normal.

Wheat prices were higher, in spite of mostly-bullish news. There were reports of improving weather conditions in Australia and export inspections of 208,700 MT were down 2% from the previous week and 14% lower than a year ago. U.S. winter wheat seedings were 90% complete, equal to a year ago and slightly ahead of the average, with the 59% of the acreage rated in good to excellent condition, unchanged from last week, but lower than the 63% good to excellent at this time a year ago. Texas winter wheat was 86% seeded, ahead of both last year and the average.

Stock markets were near unchanged with the Nasdaq Composite posting a very modest gain, but other major indexes showing small declines. Energy stocks led markets lower after Saudi Arabia announced it will reduce the price of the oil it ships to the U.S. On the plus side, a U.S. manufacturing index came in 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.