Nov 05 2014

Texas Daily Ag Market Summary 11/5/14 Posted 9 years 173 days ago by

• Feeder cattle steady to higher; futures higher.
• Fed cattle cash trade inactive; formula trades higher; futures mostly higher; beef prices lower.
• Cotton lower.
• Grains and soybeans lower, except rice futures higher.
• Crude oil lower; natural gas higher.
• Stock markets mostly modestly lower.

Texas feeder cattle auctions quoted prices mostly steady to higher. Reports noted that the supply of yearling feeders has pretty much dried up and that unweaned calves continue to sell at steep discounts to their weaned cousins. Feeder cattle futures were higher following a dip in corn futures. The fed cattle cash trade remained inactive through Tuesday. Formula trades were $3 higher. Wholesale boxed beef values slipped lower for both Choice and Select-grade offerings. Estimated cattle harvest through Tuesday totaled 228,000 head, up 1K from last week, but down 7K from a year ago. Fed cattle futures were mostly higher, with only the nearby December contract posting a modest decline.

Cotton cash prices and futures were lower as skidding oil prices raised concerns that cotton would lose market share to polyester. An increase in deliverable (against futures contracts) stocks also contributed to the decline. Reports also noted that widespread rains this week in Texas and across the Cotton Belt will further delay harvest and will likely impact both yields and quality. Any effects will not be reflected in next Monday’s Crop Production report, which is based on conditions as of November 1.

Corn and grain sorghum prices were lower due to speculative profit-taking on the underlying futures contracts, lower crude oil prices and pressure from increasing harvest-time supplies. Sources also noted that there seemed to be a downward bias to the market ahead of next Monday’s USDA monthly Crop Production report, with many evidently thinking it will show an even higher corn production forecast than last month. Wire services should have more information on trade expectations later in the week.

Wheat prices followed corn and soybeans lower. There are some lingering concerns about dry conditions in the western U.S. and in Australia, but weather has been more favorable through the Central U.S. and export business has been lackluster at best. The rain that is stalling cotton harvest on the Plains is also helping the newly-seeded winter wheat crop.

Crude oil prices have dropped to their lowest level in four years and gasoline prices at the pump are nearing those

Stock markets were mostly modestly lower. Among the major indexes, only the D-J Industrial Average posted a small increase. Energy stocks led the decline as falling oil prices continued to pressure the market. The NYSE Energy index dropped more than 2% while all stocks were off less than one-half percent. The Commerce Department reported that factory orders declined during September, but not as much as expected. The U.S. trade deficit widened in September.

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.