Texas Daily Ag Market Summary 2/10/15

Posted 9 years 76 days ago by

· Feeder cattle steady; futures higher.
· Fed cattle cash trade higher; formula trades lower; futures higher; beef prices lower.
· Cotton higher.
· Grains and soybeans mostly higher; rough rice lower.
· Crude oil higher; natural gas higher.
· Stock markets slightly lower.

Texas feeder cattle auctions quoted prices steady to strong, with one location reporting prices $5 to $10 higher. Feeder cattle futures were higher in response to higher cash premiums and optimism by technical traders. The Texas fed cattle cash trade was steady at $162 per cwt. Wholesale boxed beef values were lower. Estimated cattle harvest to start the week totaled 110,000 head, up 5K from the previous week, and 22K from a year ago. Year-to-date harvest is up 25%. Fed cattle futures were higher following feeder support as traders move away from the cattle inventory report last month and focus on technical trends.

Cotton cash and futures prices were higher to start the week following withdrawals from certified stocks and a drop in the U.S. dollar index ahead of today’s WASDE report release. The National Cotton Council meeting over the weekend estimated that cotton acreage will be down 14.6% in 2015. The USDA NASS Texas field office reported that the state’s cotton crop is 100% harvested, up 1 point from last week, and on par with last year and the 5-year average. “Ground preparation of cotton continued in areas of the Edward Plateau, the Trans-Pecos, and the Low Plains.”

Corn and grain sorghum prices were higher with the help of strong demand, light producer selling, and spillover support from crude oil. “Corn preparation continued in areas of the Blacklands, South Central, and the Low Valley.”

Wheat prices were also higher, with news that China has increased their demand for Chicago wheat. The Texas Winter Wheat crop is 98% emerged, up 1 point from last week, and consistent with this time last year and the 5-year average. 44% of the wheat crop remains in excellent or good condition, up 2 points as last week’s conditions. “Warmer temperatures last week improved winter wheat field conditions.”

Stock markets were slightly lower following a selloff of European market stocks as the standoff between Greece and its creditors continues. Traders are optimistic of an “orderly resolution” to Greece’s financial issues.

Daily Market Summary Data for 2/10/2015

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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.

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