TDA Market Recap, Aug. 1, 2016

For the week ending July 29, 2016, Texas feeder cattle auctions reported prices steady to $7 higher, with instances of steady to $3 lower. Texas Weekly Direct reported prices steady to $3 higher. Wholesale Beef values were mixed, with Choice Grade losing $1.02 to close at $197.57 per hundredweight (cwt) and Select Grade gaining $0.16 to close at $189.60 per cwt.
For the time period of July 18-24, the USDA NASS Field Office reported cattle remained in mostly good condition across the state. However, most areas of the state reported lowering stock pond levels, as well as declining range and pasture conditions. The lack of moisture also raised wildfire concerns in areas Cross Timbers, the Edwards Plateau and South Texas.
For the time period of July 15-21, exporters reported net sales totaling 20,700 metric tons (MT) for 2016, which were up 44 percent from the previous week and 45 percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 14,400 MT, which were down two percent from the previous week but up seven percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the end of last week, with cash prices gaining 2.00 cents to close at 71.37 cents per pound and October futures prices gaining 2.04 cents to close at 74.16 cents per pound. The USDA NASS Field Office reported that with continued sparse precipitation across the state row crop irrigation remained active as cotton continued to make progress. Some cotton and corn producers reported hail damage in isolated areas of the Southern High Plains. Net upland sales totaled 44,600 round bales (RB) for 2015-2016 – a marketing-year low – which were down 38 percent from the previous week and 54 percent from the prior four-week average. Increases were reported for Vietnam, China and Indonesia. Exports totaled 181,500 RB, which were down two percent from the previous week and 17 percent from the prior four-week average. The primary destinations were Vietnam, Indonesia and Mexico.
Wheat prices were lower at the end of last week, with cash prices losing $0.12 to close at $3.15 per bushel and September wheat futures losing $0.13 to close at $4.10 per bushel. The USDA NASS Field Office reported Winter Wheat producers in areas of the Northern Low Plains and Southern High Plains were concerned with low moisture levels heading into the planting season. Net sales totaled 506,100 MT for 2016-2017, which were up six percent from the previous week but down 11 percent from the prior four-week average. Increases were reported for Japan, Mexico and South Korea. Exports totaled 549,900 MT, which were up 53 percent from the previous week and 25 percent from the prior four-week average. The primary destinations were Japan, Chile and Taiwan.
Corn prices were steady at the end of last week, with cash remaining at $3.28 per bushel and September futures remaining at $3.35 per bushel. Net sales totaled 438,800 MT for 2015-2016, which were up 27 percent from the previous week but down five percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 1,379,800 MT, which were up 11 percent from the previous week and five percent from the prior four-week average. The primary destinations were Mexico, South Korea and Japan. Grain sorghum cash prices held steady at $4.81 per cwt. The USDA NASS Field Office reported corn harvest was active in areas of the Lower Valley, the Upper Coast, South Central and South Texas. Sorghum and soybeans continued to progress with sorghum harvest active in areas of the Blacklands, Coastal Bend, Upper Coast and South Texas.
Milk prices were lower at the close of last week, with July Class III milk futures losing $0.04 to close at $15.26 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 36.97 percent of Texas still in some stage of drought intensity, up 23.85 percentage points from last week. Additionally, 0.18 percent of the state remains in severe, extreme or exceptional drought, up 0.18 percentage points from last week. On the national level, drought conditions worsened as well, with 52.34 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 3.27 percentage points from last week.
Source: Texas Department of Agriculture