TDA Market Recap, April 7, 2014

Source: Texas Department of Agriculture
For the week ending April 5, 2014, feeder cattle prices reported by Texas auctions were mostly steady to $5 higher per hundredweight (cwt) compared to their previous sale. Some locations were as much as $15 higher, but a few were $4 lower on a portion of their offerings. Texas direct feeder cattle prices were $1 to $4 higher. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $2 lower at $148 per cwt. Wholesale beef values were lower. Beef export sales for the week totaled 13,800 metric tons (MT), up four percent from the previous week, but down six percent from the prior four-week average. Export shipments of 12,200 MT were up five percent from the previous week, but down four percent from the average.
Cotton prices were lower for the week, primarily because of lower prices for the cotton China is selling from its reserves and a weak export report. The price decline was limited by ongoing concerns about the dry conditions on the Texas High Plains. Additionally, late in the week, prices got a boost from a report that India’s cotton production will likely be lower this year, but its consumption may be higher. The USDA “Prospective Plantings” report issued last Monday showed U.S. cotton acreage at 11.1 million acres, up from last year, but very near pre-report expectations. Weekly upland cotton export sales totaled 42,700 bales, down 36 percent from the previous week and 49 percent from the prior four-week average. Export shipments of 246,700 bales were down five percent from a week earlier and 19 percent lower than the average.
Wheat prices were lower as beneficial rains fell in parts of the winter wheat belt. However, rainfall totals have been light and most of the area remains in severe to exceptional drought. In addition, the situation in Ukraine has not resulted in the hoped-for increase in U.S. export sales so markets are now readjusting prices lower. Wheat export sales for the week totaled 336,400 MT, down 16 percent from the previous week and 27 percent lower than the prior four-week average. However, these sales were on the high end of pre-report expectations. Export shipments of 523,100 MT were down one percent from a week earlier, but up two percent from the average.
Corn and grain sorghum prices were higher due to expectations for lower plantings this year, concerns about possible planting delays in some areas, strong exports and good domestic demand. USDA reported that U.S. farmers intend to plant four percent fewer acres of corn this year, potentially the smallest corn acreage since 2010, but still the fifth largest on record. Corn export sales totaled 960,600 MT, down 32 percent from the previous week and 12 percent below the prior four-week average, but very near pre-report expectations. Export shipments of 1,425,700 MT were up 16 percent from the previous week and 36 percent from the average.
Most of East, North and North-Central Texas recorded one-half inch or more of rainfall during the week, with totals of an inch or more common throughout the area. Lighter amounts were recorded elsewhere in the state, with scattered locations receiving one-half inch or more of rain. Last week’s U.S. Drought Monitor showed little change in overall conditions in Texas, with the area of the state rated as abnormally dry or in drought, down less than a percentage point at 85 percent. However, there was a shift to the more-severe drought categories as areas rated in extreme and exceptional drought increased, but other categories declined. Parts of West, South and Southeast Texas remain drought-free. Nationally, conditions worsened slightly, with 53 percent of the contiguous states reported in some degree of abnormal dryness or drought, up one percent 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.