TDA Market Recap, Nov. 4, 2014

Source:  Texas Department of Agriculture Market News
For the week ending Nov. 1, 2014, feeder cattle prices quoted by Texas auctions were mostly steady to $6 higher per hundredweight (cwt), with a few steady to $4 lower. Texas direct feeder cattle sales were $1 to $4 higher. Fed cattle cash sales were down $2 from the previous week’s record high. Very tight cattle supplies continue to support markets, but higher grain prices pressured feeders and demand worries caused fed cattle prices to ease back from a record high. Wholesale beef values were higher. Beef export sales for the week were more than 2.5 times the previous week and nearly double the prior four-week average. Export shipments were down 11 percent from a week earlier and eight percent lower than the average.
Cotton prices were unchanged for the week as tight availability of new-crop cotton was offset by the large global inventories and expectations for large harvests in the U.S. and India. Producers are reluctant to sell new-crop cotton at current prices and that has limited the quantities actually moving. USDA NASS reported yesterday that 42 percent of the U.S. cotton crop has been harvested, one point ahead of the average. The remaining crop was rated in 48 percent good to excellent condition, up a point from last week. In Texas, 30 percent of the cotton crop has been harvested, four points behind the average. Additionally, 33 percent of the acreage rated good to excellent, unchanged from last week. Cotton export sales were more than double the previous week and nearly double the prior four-week average. Exports were down 28 percent from the previous week and 12 percent below the average.
Wheat prices were unchanged as concerns about dry conditions in Australia and Eastern Europe were offset by good planting progress in the U.S. and weak export data. U.S. winter wheat seedings are 84 percent complete, equal to the average. In the first condition report of the season, 59 percent of the crop was rated in good to excellent condition, compared to 61 percent at this time last year. In Texas, wheat is 77 percent planted, one point ahead of the average, with 50 percent of the acreage rated as good to excellent. Wheat export sales were up 49 percent from the previous week, but down five percent from the prior four-week average. Exports were down 37 percent from a week earlier and 49 percent lower than the average.
Corn and grain sorghum prices were higher on news that China intends to increase its corn reserves, firmer crude oil and higher soybean prices. The advancing U.S. harvest and reports of good planting weather in South America limited the gains. The U.S. corn harvest advanced to 46 percent complete, still well behind the 65 percent average for this date. Crop condition ratings were unchanged, with 74 percent of the acreage rated as good to excellent. The Texas corn harvest was 77 percent complete, compared to 93 percent on average, with 67 percent of the crop rated as good to excellent, also unchanged from last week. Texas grain sorghum is 76 percent harvested, slightly ahead of normal, and 58 percent of the crop is rated good to excellent. Corn export sales were down 53 percent from the previous week and 55 percent below the prior four-week average. Exports were up 23 percent from a week ago and four percent higher than the average.
Scattered showers fell statewide during the week, with totals of one-half inch or more limited to parts of West-Central and South Texas. Last week’s U.S. Drought Monitor showed another decline in conditions in Texas with 75 percent of the state now in some degree of drought or abnormal dryness, up five percentage points from a week ago. The drought is not as intense as it was at this time last year, but the five point increase in coverage this week indicates just how fragile conditions are. Forty-three percent of the nation is suffering from some degree of drought, down one point from last week.
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

MBF = thousand board feet.
All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.”
For additional information, contact TDA at 800-835-5832 or visit www.TexasAgriculture.gov.