Dec 19 2014

Texas Daily Ag Market Summary 12/19/14 Posted 9 years 129 days ago by

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

 
Texas feeder cattle auctions quoted prices mostly steady to $10 lower. Feeder cattle futures were higher following 4 days of limit-down losses. The Texas fed cattle cash had no reportable trade on Thursday. Wholesale boxed beef values were lower. Estimated cattle harvest week-to-date’s total was 439,000 head, down 7,000 from the previous week and  45,000 from last year. Year-to-date harvest is down 9.3%. Fed cattle futures were higher as traders try to reestablish some stability. Weekly export sales totaled 10,900 metric tons (MT), up 10% from last week and 3% from the prior weeks’ averages. Hong Kong, Japan, and Mexico were the top buyers. Export shipments of 13,900 MT were down 1% from the previous week, but 10% higher than the average, with the top destinations being Hong Kong, South Korea, and Japan.

Cotton cash prices were lower, but futures closed higher at 60.82 cents/lb. with no fresh news to sustain the previous gains. The end of session was met with lower than expected export sales, probably due to the strong U.S. dollar and high estimated ending stocks. Export cotton sales of 89,500 bales were 55% lower than last week and 58% lower than the prior 4-week average with increased purchases for China, Vietnam, and India. Shipments were at 174,500 bales, 10% lower than last week, but up 49% from the average. The primary destinations  were China, Indonesia, and Turkey.

Corn and grain sorghum prices were higher with continued support from the China’s approval of Syngenta’s MIR 162 corn trait. Soybeans were higher after bullish export numbers were reported by USDA. Corn export sales were 693,500 MT for the week, down 28% from the previous week and 30% from the 4-week average. Increases were reported for Mexico, Japan, and Peru. Export shipments of 754,000 MT went mainly to Japan, Mexico, and Peru. This week’s shipment was 11% higher than last week and 24% higher from the average.

Wheat cash prices were lower, but futures closed higher with the uncertainty in Russia still in discussion. Net export sales for wheat was 476,300 MT, up 8% from last week and 23% from the prior 4-week average. Japan, Mexico, and Nigeria were the primary buyers. Shipments were 413,700 MT, up 25% from the previous week and 12% from the weekly average. The top destinations were Japan, Mexico, and the Philippines.

Stock markets were higher again on the coattails of the Federal Reserve’s Wednesday message to keep interest rates low for the time being. The Dow closed with the biggest two-day gain in over three years.

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.