TDA Market Recap, Sept. 12, 2016

For the week ending Sept. 9, 2016, Texas feeder cattle auctions reported prices steady to $8 lower. Texas Weekly Direct reported prices $2 to $7 lower. Wholesale Beef values were lower, with Choice Grade losing $2.38 to close at $187.90 per hundredweight (cwt) and Select Grade losing $4.26 to close at $182.27 per cwt.
For the time period of Aug. 30 – Sept. 4, the USDA NASS Field Office reported that pasture conditions improved with recent rainfall in the Coastal Bend and South Texas. Armyworms in pasture fields were an issue in areas of the Blacklands and Northeast Texas. Livestock were in good condition in most areas of the state, and the majority of stock tanks were full.
For the time period of Aug. 26 – Sept. 1, exporters reported net sales of 9,200 metric tons (MT) for 2016, which were down 20 percent from the previous week and 36 percent from the prior four-week average. Increases were reported for Japan, South Korea and Canada. Exports totaled 8,100 MT — a marketing-year low — and were down 41 percent from the previous week and 43 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were mixed at the end of last week, with cash prices remaining at 67.12 cents per pound and October futures prices losing 0.18 cents to close at 68.88 cents per pound. The USDA NASS Field Office reported that cotton harvest continued from the Coastal Bend through the Lower Valley, while cotton harvest was delayed in areas of the Blacklands. Cotton maturity in the Plains continued to make good progress. Net upland sales totaled 344,500 round bales (RB) for 2016-2017 and were reported for Turkey, Indonesia and Pakistan. Exports totaled 224,300 RB and were reported to Vietnam, China and Indonesia.
Wheat prices were higher at the end of last week, with cash prices gaining $0.09 to close at $3.09 cents per bushel and September futures gaining $0.10 to close at $3.94 per bushel. The USDA NASS Field Office reported that ground preparations continued for fall wheat seeding. Some producers in the High Plains experienced fieldwork delays due to recent rainfall. In areas of the Cross Timbers, wheat planting neared completion. Net sales totaled 661,100 MT for 2016-2017, which were up noticeably from the previous week and 51 percent from the prior four-week average. Increases were reported for the Philippines, Brazil and China. Exports totaled 630,900 MT, which were up six percent from the previous week and 11 percent from the prior four-week average. The primary destinations were China, Brazil and Thailand.
Corn prices were higher at the end of last week, with cash and September futures both gaining $0.13 to close at $3.36 per bushel and $3.30 per bushel, respectively. The USDA NASS Field Office reported that corn harvest was delayed due to wet conditions in the Blacklands and South Central Texas. Net sales for the 2016-2017 marketing year, which began Sept. 1, totaled 1,093,300 MT. Increases were reported for Mexico, Japan and Columbia. Exports for Sept. 1 totaled 299,000 MT and were reported for Mexico, Egypt and Nigeria.
Grain sorghum cash prices gained $0.04 to close at $4.96 per cwt. Sorghum harvest was delayed due to wet conditions in the Blacklands and South Central Texas. Sorghum harvest neared completion in the areas of the Southern Low Plains and Cross Timbers. Net sales for the 2016-2017 marketing year totaled 1,000 MT and were reported for Indonesia. Exports for Sept. 1 totaled 1,000 MT, with Mexico being the primary destination.
Milk prices were lower at the close of last week, with September Class III milk futures losing $0.48 to close at $16.51 per cwt
This week’s U.S. Drought Monitor for Texas showed an improvement in drought conditions for the state, with only 7.54 percent of Texas still in some stage of drought intensity, down 2.6 percentage points from last week. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved slightly, with 44.18 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.9 percentage points from last week.
Source: Texas Department of Agriculture