TDA Market Recap, Aug. 9, 2016

For the week ending Aug. 5, 2016, Texas feeder cattle auctions reported prices steady to $12 higher. Texas Weekly Direct reported prices $1 to $5 higher. Wholesale Beef values were mixed, with Choice Grade gaining $1.30 to close at $199.00 per hundredweight (cwt) and Select Grade losing $0.65 to close at $190.20 per cwt.
For the time period of July 25-31, the USDA NASS Field Office reported range and pastures conditions across the state declined slightly due to heat stress and windy conditions, but overall were rated as 75 percent in fair to good condition. Hay baling was active in many areas last week. Livestock remained in mostly good condition throughout the state.
For the time period of July 22-28, exporters reported net sales of 10,300 metric tons for 2016, which were down 50 percent from the previous week and 35 percent from the prior four-week average. Increases were reported for South Korea, Japan and Taiwan. Exports totaled 14,600 MT, which were up two percent from the previous week and nine percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the end of last week, with cash prices gaining 2.75 cents to close at 74.12 cents per pound and October futures prices gaining 2.47 cents to close at 76.64 cents per pound. The USDA NASS Field Office reported that cotton development continued to progress ahead of normal across most of the state. In the Coastal Bend and Lower Valley, producers were defoliating cotton and beginning to harvest. Cotton bolls were opening in the Upper Coast and South Texas. Net upland sales totaled 38,400 round bales (RB) for 2015-2016 – a marketing-year low – and were down 14 percent from the previous week and 59 percent from the prior four-week average. Increases were reported for Vietnam, Pakistan and China. Exports totaled 226,700 RB, which were up 25 percent from the previous week and 10 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Pakistan.
Wheat prices were higher at the end of last week, with cash and futures prices both gaining $0.03 to close at $3.17 per bushel and $4.12 per bushel, respectively. Net sales totaled 326,500 MT for 2016-2017, which were down 36 percent from the previous week and 39 percent from the prior four-week average. Increases were reported for Nigeria, Guatemala and South Korea. Exports totaled 578,200 MT, which were up five percent from the previous week and 30 percent from the prior four-week average. The primary destinations were the Philippines, China and Yemen.
Corn prices were lower at the end of last week with cash and futures prices both losing $0.02 to close at $3.17 per bushel and $3.24 per bushel respectively. The USDA NASS Field Office reported in the Southern Plains, the Blacklands, and Edwards Plateau, sorghum was maturing and getting ready for harvest. Sugarcane aphid populations continued to be a concern for sorghum producers in the High Plains and Blacklands. Corn harvest continued in the Upper Coast and South Texas. Net sales totaled 331,100 MT for 2015-2016; this was down 25 percent from the previous week and 27 percent from the prior four-week average. Increases were reported for Egypt, Japan and Vietnam. Exports totaled 1,138,500 MT, which were down 18 percent from the previous week and 11 percent from the prior four-week average. The primary destinations were Japan, Mexico and Vietnam. Grain sorghum cash prices were down, losing $0.03 to close at $4.62 per cwt.
Milk prices were higher at the close of last week, with August Class III milk futures gaining $0.11 to close at $17.10 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 34.65 percent of Texas still in some stage of drought intensity, up 2.32 percentage points from last week. Additionally, up 0.64 of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions worsened slightly as well, with 50.93 perecent of the U.S. experiencing abnormal dryness or some degree of drought.