TDA Market Recap, Dec. 5, 2016

Source: Texas Department of Agriculture
For the week ending Dec. 2, 2016, Texas feeder cattle auctions reported prices $2 to $18 higher. Texas Weekly Direct reported prices $1 to $6 higher. Wholesale Beef values were uneven, with Choice Grade gaining $1.72 to close at $189.72 per hundredweight (cwt) and Select Grade losing five cents to close at $172.70 per cwt.
For the time period of Nov. 21-27, the USDA NASS Field Office reported that livestock were in good condition with plenty of grazing available and minimal supplemental feeding. Range and pasture conditions were declining in areas of South Texas and the Lower Valley due to lack of moisture.
For the time period of Nov. 18-24, exporters reported net sales of 21,100 metric tons (MT) for 2016, which were up 63 percent from the previous week and 68 percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 15,000 MT, which were down 20 percent from the previous week but up three percent from the prior four-week average. The primary destinations were South Korea, Japan and Hong Kong.
Cotton prices were lower at the end of last week, with cash prices losing 0.75 cents to close at 69.87 cents per pound and December futures prices losing 1.29 cents to close at 71.98 cents per pound. The USDA NASS Field Office reported that cotton harvest was ongoing in the Plains and Trans-Pecos, and finishing up in areas of the Edwards Plateau. Net upland sales totaled 202,300 round bales (RB) for 2016-2017, which were down 21 percent from the previous week but up one percent from the prior four-week average. Increases were reported for Vietnam, China and Bangladesh. Exports totaled 131,300 RB, which were down one percent from the previous week but up seven percent from the prior four-week average. The primary destinations were China, Vietnam and Indonesia.
Wheat prices were lower at the end of last week, with cash prices losing 10 cents to close at $2.94 per bushel and December futures losing 22 cents to close at $3.90 per bushel. The USDA NASS Field Office reported that winter wheat seeding was starting to wind down in most areas of the state. Net sales totaled 483,500 MT for delivery in the 2016-2017 marketing year and were down 32 percent from the previous week and 16 percent from the prior four-week average. Increases were reported for Indonesia, Mexico and South Korea. Exports totaled 238,400 MT, which were down 37 percent from the previous week and 36 percent from the prior four-week average. The primary destinations were the Philippines, Morocco and Colombia.
Corn prices were lower at the end of last week, with cash prices losing eight cents to close at $3.36 per bushel and December futures losing 11 cents to close at $3.38 per bushel. The USDA NASS Field Office reported that harvest of row crops was nearing completion in most parts of the state. Net sales totaled 761,600 MT for 2016-2017, which were down 55 percent from the previous week and 50 percent from the prior four-week average. Increases were for Japan, South Korea and Mexico. Exports totaled 808,800 MT, which were up 40 percent from the previous week and 12 percent from the prior four-week average. The primary destinations were Mexico, South Korea and Japan.
Grain sorghum cash prices were higher, gaining three cents to close at $5.13 per cwt. Net sales totaled 227,000 MT, which were down 22 percent from the previous week and 34 percent from the prior four-week average. Increases were reported for China and unknown destinations. Exports totaled 59,200 MT, which were down 48 percent from the previous week and six percent from the prior four-week average. The destinations were China, Nigeria and Mexico.
Milk prices were higher at the close of last week, with December Class III milk futures gaining 23 cents to close at $17.16 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight worsening in drought conditions for the state, with 33.63 percent of Texas still in some stage of drought intensity. On the national level, drought conditions worsened slightly as well, with 56.31 percent of the U.S. experiencing abnormal dryness or some degree of drought.

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.