TDA Market Recap, Jan. 27, 2014

Source: Texas Department of Agriculture
For the week ending Jan. 25, 2014, Texas feeder cattle auctions reported prices $6 lower to $5 higher per hundredweight (cwt). Texas direct feeder cattle prices were steady to $2 higher. Fed cattle cash prices set another record-high last week, averaging $147.12 per cwt, up $5 from the previous week. Wholesale beef values also established new record-highs on Wednesday, with Choice-grade offerings topping $240 per cwt for the first time. Beef prices then slipped lower through the end of the week as buyers caught up on their purchases. Prices across the cattle-beef complex remain at historically high levels as tight supplies continue to support the market. Weekly beef export sales were down nine percent from the previous week, but nearly four times higher than the prior four-week average. Shipments were up one percent for the week and even with the average.
Cotton prices were lower for the week, mostly because of concerns about the Chinese economy and a sharp drop Friday in U.S. stock markets and in spite of strong weekly export data. Weekly cotton export sales were the highest so far this marketing year, coming in at more than double the previous week and more than three times higher than the prior four-week average. China, Vietnam and Indonesia were the largest buyers. Shipments were up nine percent from the previous week and 29 percent higher than the average.
Corn and grain sorghum prices were higher primarily due to support from higher soybean and energy markets. Corn export news was mixed. Weekly export sales were down 16 percent from the previous week, but up six percent from the prior four-week average. Egypt, Taiwan, Japan and Mexico were the top buyers. Shipments were up 19 percent from a week ago, but down eight percent from the average. Mexico and Japan were the leading destinations.
Wheat prices followed other grains and soybeans higher, though gains were limited by large world supplies that continue to pressure the market. Weekly export data were mixed. Wheat sales were up 32 percent from the previous week and 34 percent higher than the prior four-week average. Brazil, Japan and Nigeria were the leading buyers. However, shipments were down 28 percent from a week earlier and four percent lower than the average. Nigeria, China and Indonesia were the largest destinations.
Much of the state south of Interstate 20 recorded precipitation during the week, but totals of one-half inch or more were limited to parts of East Texas. Last week’s U.S. Drought Monitor showed another small deterioration in conditions in Texas, with the area of the state rated as abnormally dry or in drought up three points to 77 percent. The areas rated abnormally dry and in moderate drought increased, while other drought categories remained unchanged. Areas east of I-35 and north of I-10 along with sections of West and South Texas remain free of drought. Nationally, 53 percent of the contiguous states were reported in some degree of abnormal dryness or drought, up slightly 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.