TDA Market Recap, Aug. 29, 2016

For the week ending Aug. 26, 2016, Texas feeder cattle auctions reported prices steady to $5 higher, with instances of steady to $3 lower. Texas Weekly Direct reported prices steady to $5 lower. Wholesale Beef values were lower, with Choice Grade losing $1.66 to close at $199.48 per hundredweight (cwt) and Select Grade losing $0.30 to close at $193.57 per cwt.
For the time period of Aug. 15-21, the USDA NASS Field Office reported showers helped green pastures and rangeland in many parts of the state, while conditions continued to decline in areas of the Southern Low Plains. Stock ponds refilled and livestock were in good condition throughout the state.
For the time period of Aug. 12-18, exporters reported net sales of 8,000 metric tons (MT) for 2016, which were down 43 percent from the previous week and 53 percent from the prior four-week average. Increases were reported for South Korea, Taiwan and Mexico. Exports totaled 13,900 MT, which were down five percent from the previous week and four percent from the prior four-week average. The primary destinations were South Korea, Japan and Mexico.
Cotton prices were mixed at the end of last week, with cash prices remaining at 65.12 cents per pound and October futures prices losing 0.21 cents to close at 67.71 cents per pound. The USDA NASS Field Office reported that cooler temperatures slowed cotton development in areas of the Northern Low Plains, and cotton harvest was delayed due to rainfall in the Coastal Bend, South Central and South Texas. In the Upper Coast and South Texas, some cotton defoliation was taking place but was also delayed. Net sales totaled 275,900 round bales (RB) for 2016-2017 and were reported for China, Pakistan and Vietnam. Exports totaled 193,500 RB and were reported to Vietnam, India and Turkey.
Wheat prices were lower at the end of last week, with cash prices losing $0.12 to close at $3.05 per bushel and September wheat futures losing $0.24 to close at $3.90 per bushel. The USDA NASS Field Office reported that wheat producers continued to cultivate fields in preparation for fall seeding. Rainfall in the Northern High Plains and Cross Timbers helped to soften the ground for plowing. Net sales totaled 379,700 MT for 2016-2017, which were down 22 percent from the previous week and 21 percent from the prior four-week average. Increases were reported for Japan, Jamaica and Taiwan. Exports totaled 564,000 MT, which were down 21 percent from the previous week but unchanged from the prior four-week average. The primary destinations were Indonesia, Taiwan and Colombia.
Corn prices were lower at the end of last week, with cash and futures prices both losing $0.17 to close at $3.09 per bushel and $3.16 per bushel, respectively. The USDA NASS Field Office reported corn continued to progress in areas of the High Plains. In areas of the Edwards Plateau, corn harvest was nearing completion. Net sales totaled 71,100 MT for 2015-2016 — a marketing-year low — and were down 58 percent from the previous week and 82 percent from the prior four-week average. Increases were reported for Japan, Bangladesh and Israel. Exports totaled 1,045,900 MT, which were down 10 percent from the previous week and 18 percent from the prior four-week average.
Grain sorghum cash prices were down, losing $0.31 to close at $4.48 per cwt. The USDA NASS Field Office reported sorghum continued to progress in areas of the High Plains, and sorghum fields reached the blooming stage in areas of the Blacklands. In areas of the Edwards Plateau, sorghum harvest was nearing completion. For 2016-2017, net sales totaled 68,900 MT and were reported for unknown destinations and Mexico. Exports totaled 2,300 MT, which were down 97 percent from the previous week and 99 percent from the prior four-week average. The destinations were Mexico and Indonesia. 
Milk prices were lower at the close of last week, with August Class III milk futures losing $0.04 to close at $16.91 per cwt.
This week’s U.S. Drought Monitor for Texas showed an improvement in drought conditions for the state, with only 14.93 percent of Texas still in some stage of drought intensity, down 13.83 percentage points from last week. On the national level, drought conditions improved slightly, with 45.37 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 1.91 percentage points from last week.
Source: Texas Department of Agriculture