TDA Market News, May 27, 2014

Source: Texas Department of Agriculture
For the week ending May 24, 2014, feeder cattle prices reported by Texas auctions were steady to $10 higher per hundredweight (cwt). Auctions in some areas noted higher volumes of cows and bulls as ranchers reduced stocking rates in response to very dry conditions. Texas direct feeder cattle prices were mostly $3 to $7 higher, with a few as much as $9 higher. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $1 lower. Wholesale beef values were higher. Beef export sales last week totaled 12,200 metric tons (MT), down five percent from the previous week and 11 percent lower than the prior four-week average. Export shipments totaling 14,000 MT were up one percent from the previous week and up nine percent from the average.
Cotton prices were lower because of rain on the Texas High Plains, good planting progress elsewhere in the Cotton Belt and ongoing concerns about large world supplies, especially in China. Cotton export sales for the week totaled 358,300 bales of old-crop cotton, more than 10 times higher than the previous week and five times higher than the prior four-week average. An additional 158,400 bales of new-crop cotton were sold. However, most of the sales were to China, where they were tied to requirements for additional mill purchases from domestic reserves.
Wheat prices were lower as large world supplies and lackluster U.S. exports continue to burden the market. Additionally, prospects for rain on the Southern Plains were a factor, but it will likely be too late to help much of the acreage. Wheat export sales totaled 142,200 MT of old-crop wheat, more than double the previous week, but down 39 percent from the prior four-week average. Sales of new-crop wheat totaled 209,800 MT. Shipments of 507,500 MT were down 20 percent from the previous week and 14 percent below the average.
Corn and grain sorghum prices also were lower due to mixed export data, ample current supplies and improving prospects for a large corn crop this year. The same rains that continue to cause planting delays in parts of the Corn Belt also are benefiting crop development. Corn export sales for the week totaled 507,900 MT of old-crop corn, up 48 percent from the previous week, but down one percent from the prior four-week average. New-crop sales totaled 62,500 MT. Export shipments totaling 1,159,100 MT were up 13 percent from a week earlier, but down 12 percent from the average.
Almost the entire state received rainfall last week. Some of the driest areas west of I-35 recorded two to six inches of rain, with some locally-heavy totals over 10 inches. Parts of South, Central and East Texas also had two or more inches of rain. Last week’s U.S. Drought Monitor, released before the rains, showed 90 percent of the state rated as abnormally dry or in some degree of drought, down one percentage point from a week ago. However, the area in the worst category, exceptional drought, increased by five points to 25 percent. Much of the state west of I-35 is now in extreme and exceptional drought, the two most severe categories. Nationally, conditions improved somewhat with 48 percent the contiguous states reported in some degree of abnormal dryness or drought, down one percentage 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 TexasAgriculture.gov