TDA Market Recap, Aug. 14, 2017

For the week ending August 11, 2017, Texas feeder cattle auctions reported mixed prices with instances of steady to $7 lower and steady to $5 higher. Texas Weekly Direct reported prices mostly $1 to $2 lower on limited comparable sales. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $3.12 to end at $199.60 per hundredweight (cwt) and Select Grade losing 88 cents to end at $196.12 per cwt.
For the time period of July 31 – Aug. 6, 2017, the USDA NASS Field Office reported that livestock conditions in South Central, South Texas and the Lower Valley have declined. Producers were providing supplemental feed for livestock due to drought conditions. However, range and pasture condition was still rated mostly fair to good across the rest of the state.
For the time period of July 28 – Aug. 3, 2017 net sales of beef totaled 16,400 metric tons (MT) and were up 44 percent from the previous week and 31 percent from the prior four-week average. Increases were reported primarily for Japan, Hong Kong and South Korea. Exports totaled 14,700 MT and were down three percent from the previous week, but up three percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were lower at the close of last week with cash prices losing 0.25 cents to end at 68.75 cents per pound and October futures losing 1.98 cents to end at 69.24 cents per bushel. The USDA NASS Field Office reported that cotton farmers in the Northern Low Plains were concerned low temperatures could affect cotton growth. Cotton harvest started in areas of the Upper Coast and continued in South Texas and the Lower Valley. Net sales, for the 2017-2018 marketing year—which began Aug. 1, totaled 75,800 running bales (RB) and increases were reported primarily for Vietnam, Thailand and Mexico. Exports for the period ending July 31 totaled 102,200 RB, bringing the total accumulated exports to 13,823,100 RB, which is up 64 percent from the last year’s total. The primary destinations were Vietnam, Turkey and Mexico.
Wheat prices were lower at the close of last week with cash prices losing 11 cents to end at $3.90 per bushel and September futures losing 26 cents to end at $4.41 per bushel. The USDA NASS Field Office reported that field preparations were underway for the 2017 wheat and oats crops. Net sales totaled 464,300 MT and were up noticeably from the previous week and 11 percent from the prior four-week average. Increases were reported primarily for Indonesia, South Korea and Algeria. Exports totaled 568,200 MT and were down three percent from the previous week, but up nine percent from the prior four-week average. The primary destinations were Japan, China and the Philippines.
Corn prices were lower at the close of last week with cash and September futures both losing 11 cents and both closing at $3.61 per bushel. The USDA NASS Field Office reported that corn harvest continued in areas where weather conditions allowed. Net sales totaled 628,400 MT and were reported primarily for Colombia, Mexico and unknown destinations. Exports totaled 973,500 MT and were down 11 percent from the previous week, but unchanged from the prior four-week average. The primary destinations were Japan, Mexico Colombia.
Grain Sorghum cash prices were lower at the close of last week, losing 15 cents to end at $5.41 per cwt. The USDA NASS Field Office reported that sorghum harvest continued in the Upper Coast, South Texas and the Lower Valley. Net sales totaled 145,500 MT and were reported for unknown destinations and Japan. Exports totaled 102,000 MT and were down 39 percent from the previous week, but up six percent from the prior four-week average. The destinations were China and Mexico.
Milk prices were higher at the close of last week, with August Class III milk futures gaining 24 cents to end at $16.47 per cwt.
This week’s U.S. Drought Monitor for Texas showed improving drought conditions for the state, with 20.03 percent of Texas still in some stage of drought intensity, down 6.49 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought, on par with three months ago. On the national level, drought conditions improved slightly, with 29.77 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.75 percentage points from last week.

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.