Nov 06 2014

Texas Daily Ag Market Summary 11/5/14 Posted 9 years 174 days ago by

• Feeder cattle steady to $5 higher; futures lower.
• Fed cattle cash trade inactive; formula trades lower; futures lower.
• Choice beef prices higher; Select-grade lower.
• Cotton cash prices higher; futures lower.
• Corn, grain sorghum, soybeans higher; wheat, rice lower.
• Crude oil and natural gas higher.
• Stock markets mostly higher.

Texas feeder cattle auctions quoted prices steady to $5 higher. Feeder cattle futures were lower. The fed cattle cash trade remained inactive through Wednesday with cattle owners reportedly asking $170-$172 compared to last week’s $168 average. No word yet on packer bids. Formula trades were lower. Wholesale boxed beef values were higher for Choice offerings, but lower for Select-grade cuts. Estimated cattle harvest through Wednesday totaled 335,000 head, up 6K from last week, but down 21K from a year ago. Fed cattle futures were lower.

Cotton cash prices were higher, but futures were lower. Increasing harvest time supplies continue to pressure the market and a leading analytics firm raised its cotton production estimate 220,000 bales higher than the current USDA forecast. Another organization came in with a higher world carryover estimate. Rains this week will likely cause additional harvest delays for an already slow developing crop, but they are also replenishing soil moisture and giving a boost to winter wheat.

Corn and grain sorghum prices were higher, though there did not seem to be any solid reasons behind the increase. The same firm noted above lowered its pre-report forecast of corn production, but it remained at a record high. There were some concerns that rains this week could cause some additional harvest delays. 

Wheat prices were lower. There was no fresh fundamental news, other than a few concerns that cooler weather on the Plains could stall winter wheat development. However, the rain in the region this week will also help the crop. With little else to go on, the focus returned to the large world supplies and lackluster export demand.

Stock markets were mostly higher, with only the tech-oriented Nasdaq Composite posting a modest decrease as they got “a lift from the conclusion of the midterm elections and a rebound in oil prices.” Both the D-J Industrial Average and S&P 500 set new record highs.  Payroll processor ADP Inc. and Moody’s Analytics reported that private-sector payrolls rose by 230,000 in October, up 10,000 from pre-report expectations. A U.S. service sector index came in lower than expected.

This week’s U.S. Drought Monitor was not issued in time to make this report. Drought information will be included in tomorrow’s report.

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.