TDA Market Recap, Aug. 11, 2014

Source: Texas Department of Agriculture
For the week ending Aug. 9, 2014, feeder cattle price trends reported by Texas auctions were mixed. Many locations quoted steady prices, with some $2 to $10 higher and others $2 to $5 lower per hundredweight (cwt). Texas direct feeder cattle sales were mostly $2 to $4 higher. Fed cattle cash prices were nearly $3 lower per cwt. Wholesale beef values were $3 to $5 lower than the previous week’s record highs. Cattle markets softened somewhat last week after Russia announced a ban on meat imports from the U.S., but prices remain at historically-high levels. Beef export sales for the week were down 31 percent from the previous week and down 13 percent from the prior four-week average. Export shipments were up four percent from a week earlier and seven percent higher than the average.
Cotton prices were higher as buying interest improved following recent price declines. Reports of inadequate rainfall in India and strong new-crop export sales also contributed to the increase. Last week’s USDA NASS Crop Progress report showed that 53 percent of the U.S. acreage was rated in good to excellent condition, compared to 54 percent a week ago. In Texas, only 38 percent of the crop was rated good to excellent, down a point from last week, and another 40 percent was rated fair. Harvest was getting started in some southern locations. Cotton old-crop 2013-14 export sales were a net negative for the last week of the marketing year as cancellations outpaced new sales. Net sales for the new-crop 2014-15 marketing year were more than double the previous week and nearly double the prior four-week average. Export shipments were up 23 percent from the previous week and up 42 percent from the average. Accumulated shipments for the marketing year totaled 9,575,000 bales, down 20 percent from last year and nearly 1 million bales below USDA’s most recent projection.
Wheat prices were modestly lower for the week as large world supplies and weak demand continue to pressure the market. Weak export data and reports that Russia’s import restrictions would not impact its wheat exports contributed to the decline. USDA NASS reported that winter wheat harvest is at 90 percent complete, compared to 85 percent on average. Wheat export sales for the week were down 26 percent from the previous week and 24 percent lower than the prior four-week average. Exports were down one percent from the previous week and down seven percent from the average.
Corn and grain sorghum prices were slightly higher after a modest decline in crop conditions and higher export shipments. However, weak export sales and forecasts for beneficial rains in the Corn Belt limited the gains. USDA corn condition ratings slipped a little, with 73 percent of the acreage rated in good to excellent condition. That’s down two points from a week ago, but still much better than the 64 percent at this time last year. In Texas, 63 percent of the corn crop was rated in good to excellent condition, up two points from a week ago. Both U.S. and Texas grain sorghum were rated in mostly good to fair condition, with 39 percent of the Texas crop harvested.Corn old-crop 2013-14 export sales were down 30 percent from the previous week and down 66 percent from the prior four-week average. New-crop sales for 2014-15 were down 31 percent from a week earlier and three percent lower than the average. Export shipments were up 24 percent from the previous week and eight percent higher than the average.
Parts of the Panhandle, Trans-Pecos, North and East Texas received one-half inch or more of rain during the week, while other areas recorded little or no rainfall. Last week’s U.S. Drought Monitor showed very little change in conditions in Texas, with 83 percent of the state rated in some degree of drought or abnormal dryness, down one percentage point from a week ago. The percentages of the state in each drought category did not change much either. The area in moderate drought declined by four points and the area is severe drought increased by three points. Parts of East and Southwest Texas and a small area in the Trans-Pecos remained drought-free. Nationally, the total area experiencing abnormal dryness or some degree of drought remained unchanged at 48 percent of the contiguous states.
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