TDA Market Recap, Feb. 10, 2014

Source: Texas Department of Agriculture
For the week ending Feb. 8, 2014, Texas feeder cattle auctions reported prices $4 lower to $7 higher per hundredweight (cwt). Many locations had very light receipts due to cold temperatures and icy roads that limited cattle movement. Texas direct feeder cattle prices were $2 to $4 lower.
Fed cattle cash prices declined $3.60 per cwt in very light trade, with only 228 head confirmed by USDA at $141. Wholesale beef values were sharply lower, with Choice-grade offerings down $22.72 (10 percent) for the week as retailers caught up on purchases and returned to more normal buying patterns. Those lower prices also pulled fed cattle and feeders lower. However, prices across the cattle sector remain at historically high levels as tight supplies continue to support the market. Weekly beef export sales totaling 8,100 metric tons (MT) were down 19 percent from a week ago and 21 percent below the prior four-week average. Hong Kong, Japan and Taiwan were the leading buyers. Shipments of 12,300 MT were up one percent from a week earlier and up nine percent from the average.
Cotton prices were higher due to tight supplies of uncommitted U.S. cotton, continued Chinese purchases and strong weekly export data. Cotton export sales of 179,800 bales were 63 percent lower than a week earlier and 43 percent lower than the average. However, sales for the marketing year have now reached 87 percent of the annual total projected by USDA, compared to 80 percent at this time last year. Shipments totaled 358,600 bales, a high for the marketing year, up 18 percent from last week and 48 percent higher than the average. China, Turkey, Indonesia and Mexico were the top destinations.
Corn and grain sorghum prices were higher because of hot, dry conditions in South America and support from higher soybean prices. Corn export sales totaled 1.7 million MT, down eight percent from the previous week, but nearly double the prior four-week average. Japan, Spain and Vietnam were the leading buyers. Exports of 747,300 MT were down 26 percent from a week earlier and three percent lower than the average.
Wheat prices were higher due to a decline in crop conditions and concerns about possible winter-kill on the U.S. Plains and in the Black Sea region. Wheat export sales totaled 733,600 MT for the week, down 15 percent from the previous week, but up 62 percent from the average. Guatemala, Japan and Brazil were the leading buyers. Shipments of 367,900 MT were two percent lower than a week earlier, and 18 percent below the prior four-week average.
Much of East Texas received one-half inch or more of precipitation during the week, but little or no moisture was recorded elsewhere in the state. Last week’s U.S. Drought Monitor showed further deterioration of conditions in Texas, with the area of the state rated as abnormally dry or in drought up more than four points to 85 percent. The areas rated abnormally dry, in moderate drought and extreme drought increased and the percentage in exceptional drought remained near unchanged. Nationally, 57 percent of the contiguous states were reported in some degree of abnormal dryness or drought, up one point from a week ago.
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

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.