TDA Market Recap, 7-25-16

For the week ending July 22, 2016, Texas feeder cattle auctions reported prices $2 to $10 lower, with instances of steady to $3 higher. Texas Weekly Direct reported prices steady to $4 lower. Wholesale Beef values were lower, with Choice Grade losing $2.48 to close at $200.09 per hundredweight (cwt) and Select Grade losing $1.54 to close at $189.57 per cwt.
For the time period of July 11-17, the USDA NASS Field Office reported that cattle remained in good condition throughout the state, although range and pasture conditions suffered due to lack of precipitation in areas across Southern and Central Texas. Active wildfires were reported in areas of the Northern Low Plains.
For the time period of July 8-14, exporters reported net sales of 14,400 metric tons (MT) for 2016, which were up 13 percent from the previous week but down two percent from the prior four-week average. Increases were reported for South Korea, Japan and Hong Kong. Exports totaled 14,600 MT, which were up 27 percent from the previous week and nine percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were lower at the end of last week, with cash prices losing 1.25 cents to close at 69.87 cents per pound and October futures prices losing 1.11 cents to close at 72.52 cents per pound. The USDA NASS Field Office reported that irrigation of row crops remained active across much of the state.
Cotton continued to make progress, although some cotton producers reported hail damage in areas of the Northern Low Plains. Net upland sales totaled 72,100 round bales (RB) for 2015-2016, which were up 31 percent from the previous week but down 41 percent from the prior four-week average. Increases were reported for Vietnam, South Korea and India. Exports totaled 186,000 RB, which were up 25 percent from the previous week but down 13 percent from the prior four-week average. The primary destinations were Vietnam, Mexico and Indonesia.
Wheat prices were mixed at the end of last week, with cash prices remaining at $3.23 per bushel and September wheat futures losing $0.01 to close at $4.19 per bushel. The USDA NASS Field Office reported that the Winter Wheat harvest is near completion in areas of the Cross Timbers. Net sales totaled 478,000 MT for 2016-2017, which were up 50 percent from the previous week but down 15 percent from the prior four-week average. Increases were reported for Japan, China and Nigeria. Exports totaled 360,600 MT, which were up six percent from the previous week but down 27 percent from the prior four-week average. The primary destinations were China, the Dominican Republic and Mexico.
Corn prices were lower at the end of last week, with cash prices losing $0.21 to close at $3.29 per bushel and September corn futures losing $0.22 to close at $3.35 per bushel. Net sales totaled 345,100 MT for 2015-2016, which were down 48 percent from the previous week and 42 percent from the prior four-week average. Increases were reported for Taiwan, Mexico and South Korea. Exports totaled 1,240,900 MT, which were unchanged from the previous week but down five percent from the prior four-week average. The primary destinations were Japan, Mexico and Taiwan.
Grain sorghum cash prices were down, losing $0.38 to close at $4.83 per cwt. Sorghum and soybeans continued to develop, with some reports of sugarcane aphids affecting some sorghum fields in areas of the Southern Low Plains.
Milk prices were lower at the close of last week, with July Class III milk futures losing $0.05 to close at $15.27 per cwt
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 13.12 percent of Texas still in some stage of drought intensity, up 7.09 percentage points from last week. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved, with 55.46 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 3.72 percentage points from last week.
Source: Texas Department of Agriculture Ag Market Summary