Dec 09 2014

Texas Daily Ag Market Summary 12/9/14 Posted 9 years 133 days ago by

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

Texas feeder cattle auctions quoted prices steady to $7 higher per cwt. Feeder cattle futures were sharply lower with all contract months down their $3 daily trading limit. The fed cattle cash trade was inactive on Monday, as it usually is early in the week, but formula trades were lower. Wholesale boxed  beef values were lower. Estimated cattle harvest on Monday totaled 111,000 head, unchanged from last week, but down 7,000 from a year ago. Fed cattle futures were sharply lower with the two front-month contracts down their $3 trading limit. Most of the action in the futures markets yesterday seemed to be driven by speculative selling since there were no substantial changes in fundamentals. The lower beef prices suggest weaker demand, but cattle remain in very short supply, and that should continue to support cattle cash prices.

Cotton cash prices and futures were lower yesterday as traders took up positions ahead of tomorrow’s USDA supply and demand reports, with most expecting an increase in the U.S. production forecast. However, that may also be offset by an increase in export projections. USDA said yesterday that cotton harvest on the Texas High Plains is 70%-80% complete, with more acreage remaining in areas where growers had waited for a freeze to defoliate the crop.

Corn and grain sorghum prices were lower mostly because of speculative selling on the underlying futures contracts. Corn traded higher early in the day on news that China’s corn crop might be a little smaller than current projections and there are ongoing concerns about weather in South America. However, traders expect bearish numbers in tomorrow’s USDA reports and that was enough to pull prices lower late in the session.

Wheat cash prices were lower, but futures were modestly higher. Elevators are rolling over from a December to March basis, which had created some erratic spreads over the past week or so. Traders expect the USDA numbers for wheat to remain bearish, but wire services reported that Russia is considering export restrictions due to quality issues.

Stock markets were lower, ”pressured by steepening declines in oil prices and signs of economic weakness in Europe and Japan.”

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.