TDA Market Recap, Aug. 22, 2016

For the week ending Aug. 19, 2016, Texas feeder cattle auctions reported prices steady to $10 higher, with instances of steady to $3 lower. Texas Weekly Direct reported prices steady to $3 lower. Wholesale Beef values were lower, with Choice Grade losing $1.60 to close at $200.07 per hundredweight (cwt) and Select Grade losing $0.58 to close at $193.60 per cwt.
For the time period of Aug. 8-14, the USDA NASS Field Office reported that range and pasture conditions across the state continued to decline due to excessive heat and lack of moisture. Ponds and stock tanks were quickly losing water to evaporation, and available forages were showing stress. Livestock were in generally good condition across the state.
For the time period of Aug. 5-11, exporters reported net sales of 14,100 metric tons (MT) for 2016, which were down 39 percent from the previous week and 18 percent from the prior four-week average. Increases were reported for South Korea, Japan and Hong Kong. Exports totaled 14,700 MT, which were up three percent from the previous week and one percent from the prior four-week average. The primary destinations were South Korea, Japan and Mexico.
Cotton prices were lower at the end of last week, with cash prices losing 0.50 cents to close at 64.87 cents per pound and October futures prices losing 0.52 cents to close at 67.57 cents per pound. The USDA NASS Field Office reported that irrigated cotton made progress in the High Plains and many fields had reached cut-out stage. Dry land cotton remained greatly in need of moisture in the Edwards Plateau, while cotton harvest in the Coastal Bend and Upper Coast was progressing well due to hot, dry conditions. In South Texas, cotton was in the boll opening stage and ready for defoliation. Net sales totaled 205,000 round bales (RB) for 2016-2017 and were reported for Vietnam, Indonesia and Turkey. Exports totaled 175,800 RB, which were reported to Pakistan, Vietnam and India.
Wheat prices were higher at the end of last week, with cash prices gaining $0.08 to close at $3.24 per bushel and September wheat futures gaining $0.07 to close at $4.19 per bushel. The USDA NASS Field Office reported that preparations continued for Winter Wheat and small grain seedings across the state. Net sales totaled 489,500 MT for 2016-2017, which were down 19 percent from the previous week but up two percent from the prior four-week average. Increases were reported for Brazil, Taiwan and the Philippines. Exports totaled 717,900 MT — a marketing-year high — and were up 77 percent from the previous week and 52 percent from the prior four-week average. The primary destinations were Brazil, Japan and Nigeria.
Corn prices were higher at the end of last week, with cash prices gaining $0.05 to close at $3.25 per bushel and September corn futures gaining $0.07 to close at $3.34 per bushel. The USDA NASS Field Office reported that corn harvest continued in areas of the Blacklands, Edwards Plateau, East Texas and South Central Texas. Net sales totaled 167,400 MT for 2015-2016 — a marketing-year low — and were down 72 percent from the previous week and 61 percent from the prior four-week average. Increases were reported for Japan, South Korea and Peru. Exports totaled 1,166,300 MT, which were down 19 percent from the previous week and 10 percent from the prior four-week average. The primary destinations were Japan, Mexico and Taiwan.
Grain sorghum cash prices were higher gaining $0.09 to close at $4.77 per cwt. The USDA NASS Field Office reported that sorghum harvest was in full swing in the Edwards Plateau and East Texas, and producers were bailing sorghum in some areas of the Blacklands. Net sales totaled 60,700 MT for 2015-2016 and were reported for China and Japan. Exports totaled 9,600 MT, which were down 67 percent from the previous week and 40 percent from the prior four-week average. The destinations were China, Japan and Mexico.
Milk prices were lower at the close of last week, with August Class III milk futures losing $0.05 to close at $16.95 per cwt.
This wee’s U.S. Drought Monitor for Texas showed a significant improvement in drought conditions for the state, with only 28.76 percent of Texas still in some stage of drought intensity, down 15.41 percentage points from last week. On the national level, drought conditions improved, with 43.53 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 3.67 percentage points from last week.
Source: Texas Department of Agriculture