TDA Market Recap, Aug. 27, 2012

Source: Texas Department of Agriculture
For the week ending Aug. 25, 2012, feeder cattle price trends at Texas auctions ranged from $8 lower per hundredweight (cwt) to $10 higher. Texas direct feeder cattle sales were also mixed with a limited test on most classes. At the Oklahoma City National Stockyards, feeder cattle were $3 lower to $2 higher. Tight feeder supplies and prospects they will get even tighter this fall continue to support higher prices. However, variable quality, high grain prices and poor pasture conditions in many areas pulled some markets lower.
The fed cattle cash trade was unchanged from the previous week, and wholesale beef prices were about $1 lower.
Cotton prices were higher amid continued dry weather in U.S. growing areas and concerns that India might limit exports because of weak monsoon rains and lower production. Wheat prices increased early in the week in response to reports of a smaller Russian crop, but weakened later as beneficial rains fell in parts of the U.S. winter wheat growing area. Corn and grain sorghum prices were modestly higher as prospects for a smaller U.S. crop were partially offset by weak export demand.
As for futures markets, feeder cattle, cotton and corn were higher, but fed cattle, wheat and lumber were lower.
Much of the state recorded rainfall during the week, ranging from less than a quarter inch in many areas to more than one inch in the eastern Panhandle, northern Low Plains and along the coast.
According to the weekly USDA NASS crop progress report, the crop condition indexes for cotton and peanuts improved by one point from a week ago, while corn, rice, grain sorghum and soybeans remained unchanged. For cotton, 95 percent of the acreage is setting bolls or beyond, and bolls are opening on 21 percent, both well ahead of normal. Seven percent of the crop has been harvested. Corn was 64 percent mature and 56 percent harvested, both higher than the average for this date. Grain sorghum was 71 percent mature and 57 percent harvested, also ahead of the normal pace. Rice harvest was 59 percent complete compared to 72 percent on average.
Pasture conditions improved slightly with 17 percent of the acreage now rated in good to excellent condition compared to 16 percent a week ago; 53 percent was rated poor to very poor; and 30 percent was rated in fair condition.

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 500-600 pound medium and large No.1 steers at the Oklahoma City National Stockyards. Futures prices are quoted for the nearest month contract on the last trading day of the week.
For additional information, contact TDA at 800-835-5832 or visit www.TexasAgriculture.gov.