TDA Market Recap, Feb. 18, 2014

Source: Texas Department of Agriculture
For the week ending Feb. 15, 2014, Texas feeder cattle auctions reported prices mostly steady to $10 higher per hundredweight (cwt), with the market generally stronger later in the week. A number of locations reported smaller than usual receipts as inclement weather limited cattle movement. Texas direct feeder cattle prices were mostly steady. Fed cattle cash prices were $1 higher in spite of lower wholesale beef values. Prices across the cattle sector remain at historically high levels as tight supplies and strong demand continue to support the market. Beef export sales for the week totaled 16,600 metric tons (MT), more than double the previous week and 38 percent higher than the prior four-week average. Japan, South Korea and Hong Kong were the leading buyers. Shipments of 11,900 MT were down three percent from a week earlier and two percent from the average.
Cotton cash prices ended the week unchanged, and futures prices were modestly higher. The USDA supply and demand report on Monday left U.S. projected ending stocks unchanged, but reduced the expected world carryover. Strong export demand from countries other than China also was supportive. Export sales were down 33 percent from the previous week and 65 percent from the four-week average as the Lunar New Year holiday slowed business with China. However, commitments for the marketing year have now reached 88 percent of the expected total, compared to 82 percent at this time last year. Turkey, Bangladesh and Mexico were the leading cotton buyers. Export shipments of 336,600 bales were down six percent from last week’s marketing year high, but 21 percent higher than the four-week average and well above the weekly total needed to meet USDA projections for the marketing year. China, Turkey, Vietnam and Mexico were the top destinations.
Corn and grain sorghum prices were unchanged to modestly higher due to strong export data and lower than expected U.S. and world projected ending stocks. However, ample world supplies limited the gains. Weekly corn export sales were on the high end of expectations at 1.3 million MT, down 25 percent from the previous week, but up one percent from the prior four-week average. Exports of 952,500 MT were up 28 percent from a week earlier and 18 percent from the average. The top destinations were Mexico, Japan and South Korea.
Wheat prices were higher due to ongoing concerns about possible winter freeze damage on the U.S. Plains and in the Black Sea region. Wheat export sales for the week totaled 597,000 MT, down seven percent from the previous week, but up 12 percent from the prior four-week average. Shipments of 403,700 MT were up 10 percent from a week earlier, but down eight percent from the average. Mexico, Japan and Venezuela were the top destinations.
Pine saw logs for the November-December period up two percent from the last period, but down 19 percent from a year ago. Pine pulpwood prices increased three percent from the last period and five percent from a year ago.
Areas of East Texas received one-half inch or more of precipitation during the week, but little or no moisture was recorded elsewhere in the state. Last week’s U.S. Drought Monitor showed further deterioration in conditions in Texas, with the area of the state rated as abnormally dry or in drought up three points to nearly 88 percent. The areas rated in moderate, severe and extreme drought increased and the percentage in exceptional drought remained unchanged. The drought-free area in East Texas was smaller, though conditions did show some improvement in the far northeast corner of the state. Nationally, 55 percent of the contiguous states were reported in some degree of abnormal dryness or drought, down one point 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.