TDA Market Recap, Aug. 6, 2012

Source: Texas Department of Agriculture
For the week ending Aug. 4, 2012, feeder cattle prices at Texas auctions were steady to as much as $12 higher per hundredweight (cwt), although a few locations noted lower prices on part of their offerings. Texas direct feeder cattle sales were mostly $1 to $3 higher. At the Oklahoma City National Stockyards, feeder cattle were $2 to $4 higher and calves were $2 to $3 lower. Tight supplies and lower feed grains for much of the week contributed to the higher prices, although negative cattle feeding margins limited the increase. The fed cattle cash trade was $3.50 higher per cwt following several weeks of light marketings. Wholesale beef prices were higher.
Cotton prices were higher amid ongoing concerns about hot, dry weather in West Texas and drier than normal conditions in India. Grain prices were lower for much of the week before turning higher on Friday due to renewed concerns about drought in the Midwest, a weaker dollar and higher stock markets, metals and crude oil. The Texas Forest Service reported that during the May-June period, Texas pine saw log and pulp wood prices were higher than both the previous reporting period and a year ago. Hardwood saw logs were lower. An improved housing market and better overseas demand contributed to the increase in pine saw log prices.
As for futures markets, feeder cattle, fed cattle, cotton, corn and lumber were higher, but wheat was lower.
Very little rain fell anywhere in the state during the week with only a few light showers along the coast, in far West Texas and in the northern Panhandle.
According to the weekly USDA NASS crop progress and condition report, the condition index for cotton was 50 points, down from 59 points a week ago, but well above the 35 points at this time last year. For cotton, 98 percent of the acreage is squaring and 68 percent is setting bolls, both ahead of normal. The corn condition index was 67 points, down four from last week, with 95 percent of the crop tasseled and 35 percent harvested, well ahead of normal. Grain sorghum was 82 percent headed and 54 percent of the crop has been harvested, both ahead of normal. The condition index was 70 points, unchanged from a week ago. The condition index for peanuts was 77, up one point from last week. Rice harvest is 15 percent complete, with a condition index of 80, down six points from a week ago.
Pasture and hay conditions varied across the state depending on rainfall. Statewide, pasture conditions declined with only 18 percent of the acreage rated in good to excellent condition; 50 percent was rated poor to very poor; and 32 percent was rated in fair condition.

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 500-600 pound medium and large No.1 steers at the Oklahoma City National Stockyards. Futures prices are quoted for the nearest month contract on the last trading day of the week.
For additional information, contact TDA at 800-835-5832 or visit www.TexasAgriculture.gov.