TDA Market Recap, Aug. 29, 2017

For the week ending Aug. 25, 2017, Texas feeder cattle auctions reported mixed prices with instances of steady to $5 lower and steady to $4 higher. Texas Weekly Direct reported prices steady to $4 lower. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $1.77 to end at $191.32 per hundredweight (cwt) and Select Grade losing $3.32 to end at $188.30 per cwt.
For the time period of Aug. 14-20 the USDA NASS Field Office reported that producers continued providing supplemental feed for livestock in South Texas and the Lower Valley. Lambs were being weaned in areas of the Edwards Plateau. Range and pasture benefited greatly from the previous week showers in the northern areas of the state. However, pastures in South Central Texas, the Coastal Bend, the Upper Coast, South Texas and the Lower Valley were browning due to the hot, dry weather.
For the time period of Aug. 11-17 exporters reported that net sales of beef totaled 16,600 metric tons (MT) and were up 30 percent from the previous week and 22 percent from the prior four-week average. Increases were reported for Japan, Egypt and South Korea. Exports totaled 15,200 MT and were down three percent from the previous week, but unchanged from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were mixed at the close of last week with cash prices gaining 0.75 cents to end at 69.75 cents per pound and October futures losing 0.10 cents to end at 68.61 cents per bushel. The USDA NASS Field Office reported that hail damaged some cotton fields in the Northern High Plains. Cotton rust was spotted in areas of the Trans-Pecos. Cotton harvest continued in the Upper Coast, the Coastal Bend, South Texas and the Lower Valley, while warmer temperatures and dry weather were needed in some areas of the High and Low Plains. Net sales totaled 277,600 running bales (RB) for 2017-2018, and were reported primarily for China, Mexico and Vietnam. Exports totaled 221,800 RB and were reported primarily to Vietnam, Indonesia and China.
Wheat prices were lower at the close of last week with cash prices losing four cents to close at $3.45 per bushel and September futures losing three cents to close at $4.05 per bushel. The USDA NASS Field Office reported that field preparations continued for the 2017 wheat and oats crops. Some farmers in the Northern Low Plains had begun seeding winter wheat. Net sales totaled 386,400 MT and were down 39 percent from the previous week and 11 percent from the prior four-week average. Increases were for Taiwan, the Philippines and Thailand. Exports totaled 499,000 MT and were down nine percent from the previous week and eight percent from the prior four-week average. The primary destinations were China, the Philippines and Mexico.
Corn prices were lower at the close of last week with cash prices and September futures both losing a dime and both ending at $3.39 per bushel. The USDA NASS Field Office reported that high humidity prevented farmers from harvesting corn in areas of the Northern Low Plains and the Southern High Plains. Net sales totaled 102,400 MT, for 2016-2017, and were up 64 percent from the previous week and 68 percent from the prior four-week average. Increases were reported primarily for Costa Rica, Japan and Mexico. Exports totaled 725,000 MT and were up four percent from the previous week, but down 21 percent from the prior four-week average. The primary destinations were Mexico, Japan and Peru.
Grain Sorghum cash prices were lower at the close of last week, losing 18 cents to end at $5.14 per cwt. The USDA NASS Field Office reported that rain in areas of the Northern High Plains helped with control of sugarcane aphid populations in sorghum. Net sales totaled 42,800 MT for 2016-2017, and were up noticeably from the previous week, but down 25 percent from the prior four-week average. Increases were reported for China, Japan and Taiwan. Exports totaled 52,600 MT and were down 24 percent from the previous week and 47 percent from the prior four-week average. The destinations were China, Mexico and Taiwan.
Milk prices were lower at the close of last week, with September Class III milk futures losing 49 cents to end at $16.64 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 13.56 percent of Texas still in some stage of drought intensity, up 3.27 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought, down 0.19 percentage points from three months ago. On the national level, drought conditions improved slightly, with 27.43 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.62 percentage points from last week.

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.