TDA Market Recap, April 14, 2014

Source: Texas Department of Agriculture
For the week ending April 12, 2014, feeder cattle prices reported by Texas auctions were mostly steady to $6 higher per hundredweight (cwt) compared to their previous sale. However, a few locations also noted lower prices, especially on feeders weighing 700 pounds or more.  Texas direct feeder cattle prices were steady on cattle weighing less than 800 pounds, but lower on heavier weights. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $1 lower at $147 per cwt in very light trade. Wholesale beef values were lower. Beef export sales for the week totaled 18,500 metric tons (MT), the highest of the marketing year, up 34 percent from the previous week and 21 percent from the prior four-week average. Export shipments of 12,400 MT were up one percent from a week earlier, but down four percent from the average.
Cotton prices were lower for the week as large world supplies continue to pressure the market. However, other market factors were more supportive. World stocks outside China are expected to fall to their lowest level in four years, and U.S. cotton carryover is projected to be the lowest since 1991. In addition, markets are concerned about how the drought conditions in the Texas Plains will impact this year’s crop. Export data was mixed. Weekly upland cotton export sales were a negative 10,900 bales, as cancellations of 68,700 bales more than offset 57,800 bales in new sales. Advance sales for the 2014-15 crop year totaled 119,300 bales. However, export shipments totaled 303,900 bales, up 23 percent from the previous week, 11 percent higher than the prior four-week average and well above the average needed to meet USDA projections for the marketing year.
Wheat prices declined after projected U.S. ending stocks came in higher than expected and export sales fell to their lowest level of the year. The decline was limited by ongoing concerns about dry conditions on the U.S. Plains and hopes that the situation in Ukraine could boost U.S. exports. Wheat export sales totaled only 41,800 MT, the lowest weekly total of the marketing year, down 88 percent from the previous week and 90 percent from the average. Cancellations mostly offset new sales. Export shipments of 553,600 MT were up six percent from the previous week and 14 percent from the average.
Corn and grain sorghum prices were lower due to good planting weather in some parts of the country and weak export data. Corn export sales for the week totaled 658,700 MT, down 31 percent from the previous week and 30 percent from the prior four-week average. Export shipments of 1,217,400 MT were down 15 percent from a week earlier, but up 10 percent from the average.
Parts of East, North and West-Central Texas recorded one-half inch or more of rainfall during the week, with lighter totals reported elsewhere in the state. Last week’s U.S. Drought Monitor showed some improvement in overall conditions in Texas, with the total area of the state rated as abnormally dry or in drought down two percentage points to 83 percent and a larger drought-free area in East Texas. However, the Panhandle, Northwest Texas and a wide band from Uvalde and Del Rio northeast to Ft. Worth remain in extreme to exceptional drought. More than 40 percent of the state is in severe drought condition or worse. Meanwhile, parts of West, South and East Texas remain drought-free.
Nationally, conditions improved somewhat with 50 percent the contiguous states reported in some degree of abnormal dryness or drought, down three percentage points 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.