Dec 03 2014

Texas Daily Ag Market Summary 12/3/14 Posted 9 years 138 days ago by

• Feeder cattle mostly steady to $2 higher, few $5-$10 higher; futures higher.
• Fed cattle cash trade inactive; formula trades lower; futures lower; beef prices lower.
• Cotton cash prices unchanged; futures higher.
• Grains and soybeans mostly lower.
• Crude oil and natural gas lower.
• Stock markets higher.

Texas feeder cattle auctions quoted prices mostly steady to $10 higher, with the most gain at a couple of locations on lighter weight calves headed back out to winter pastures. Feeder cattle futures were higher in response to lower corn futures. The fed cattle cash trade was inactive through Tuesday, with initial asking prices at $175, up $2 from last week’s average. No word yet on packer bids. Formula trades were $1 lower. Wholesale boxed beef values were lower. Estimated cattle harvest for the week totals 222,000 head, down 10K from last week and 16K lower than a year ago. Fed cattle futures were lower in anticipation of lower cash prices this week and the lower corn.

Cotton cash prices were unchanged, but futures were higher after Australia lowered its production and export forecasts. Australia is the world’s third largest cotton exporter behind the U.S. and India. A stronger dollar and lower oil futures put a lid on the increase, as one makes U.S. cotton more expensive for foreign buyers and the other lowers to cost of manufacturing synthetic fibers.

Grain prices were lower, with only rice managing to buck the trend. Corn and grain sorghum prices were lower. Cheaper gasoline has eroded ethanol margins and the stronger dollar was bearish, but otherwise fundamentals remain largely unchanged. U.S. farmers produced a record-large crop this year that needs to absorbed by the market  place. Wheat prices followed corn and soybeans lower. Australia also lowered its wheat production estimate, which should have been at least somewhat supportive, but the market just could not overcome the pressure from lower row crops and lackluster demand.   

Stock markets closed higher yesterday with the Dow-Jones Industrial Average posting a new record high. Energy stocks rebounded in spite of another dip in oil futures, with most of the money flowing into “large-cap energy stocks, which are considered to be more insulated against oil-price volatility (than) their smaller brethren.” Construction spending during October 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.