TDA Market Recap for Nov. 24, 2014

Source:  Texas Department of Agriculture Market News
For the week ending Nov. 22, 2014, Texas auctions quoted feeder cattle prices mostly steady to $5 higher per hundredweight (cwt), with a few locations $5-$10 higher on a portion of their offerings. Texas direct feeder cattle sales were steady to $2 higher. Fed cattle cash sales were $2.50 higher in very light confirmed trade. Wholesale beef values were higher. Beef export sales for the week were up 69 percent from the previous week and up 26 percent from the prior four-week average. Export shipments were up 3 percent from a week earlier, but down 4 percent from the average.
Cotton prices were higher after the International Cotton Advisory Committee lowered its estimate of projected ending stocks and reports said that Chinese production could be down as much as 16 percent this year, compared to current estimates of a seven percent decline. Strong export sales and economic stimulus efforts in China were also factors.USDA NASS reported that the state’s cotton crop is 46 percent harvested, well below the 69 percent average, with the remaining acreage rated in 34 percent good to excellent condition and 40 percent rated fair, both unchanged from a week ago. The U.S. cotton harvest was 69 percent complete, compared to a five-year average of 74 percent. National crop condition ratings have been discontinued for the season. Cotton export sales were up 9 percent from the previous week and 41 percent higher than the prior four-week average. Export shipments were the lowest of the marketing year, down 29 percent from a week ago and 22 percent lower than the average.
Wheat prices were lower as weak export data and large world inventories continued to pressure the market. However, the decline was limited by concerns about freeze damage on the U.S. Plains and weather issues in South America. U.S. winter wheat seedings were 95 percent complete, slightly behind the average, with 60 percent of the crop rated in good to excellent condition, unchanged from last week, but slightly lower than a year ago. Texas wheat planting was 89 percent complete, also lower than normal. Wheat export sales were down 13 percent from the previous week, but up 1 percent from the prior four-week average. Exports were down 43 percent from a week earlier and 39 percent lower than the average.
Corn and grain sorghum prices were lower as prospects for a record large corn crop and lower export shipments offset higher ethanol margins and stronger export sales. USDA reported that the national corn harvest was 89 percent complete, compared to 90 percent at this time last year and an average of 88 percent. In Texas, corn harvest was 97 percent complete, compared to 99 percent on average by this date. The remaining Texas crop was rated in 67 percent good to excellent condition, unchanged from last week. Grain sorghum harvest was 83 percent complete for both Texas and the nation, with both still running behind the normal pace. Corn export sales were up 80 percent from the previous week and 45 percent higher than the average. Export shipments were the lowest of the marketing year, down 36 percent from a week earlier and down 39 percent from the prior four-week average.
Most of the state recorded precipitation during the week with totals of one-half inch or more common east of a line from Vernon to Abilene to Corpus Christi and in the Lower Valley. Parts of Central and East Texas recorded more than five inches of rain. Last week’s U.S. Drought Monitor showed conditions in Texas near unchanged, with 69 percent of the state now in some degree of drought or abnormal dryness, down one percentage point from a week ago. Twenty-four percent of the state remains in severe, extreme or exceptional drought, the same as last week. Nationally, 47 percent of the country is experiencing abnormal dryness or some degree of drought, unchanged from a week ago.
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.