TDA Market Recap, Feb. 12, 2018

For the week ending Feb. 10, 2018, Texas feeder cattle auctions reported mostly steady to higher prices, with only five instances of lower prices. Texas Weekly Direct reported trade activity as active on good demand and prices steady to $3 higher per hundredweight (cwt). Fed cattle cash prices traded slow on light demand. Compared to last week, live cash trades were steady at $126.00 per cwt. Wholesale Beef values were lower than the previous week, with Choice Grade losing $2.58 to close at $206.52 per cwt and Select Grade losing 71 cents to end at $202.74 per cwt. For the time period of Jan. 26 – Feb. 1, exporters reported net sales of 18,500 metric tons (MT) for 2018. Increases were reported for Japan, Taiwan, South Korea, Canada and Mexico. Exports of 16,000 MT were reported for 2018. The primary destinations were to Japan, South Korea, Hong Kong, Mexico and Taiwan.
Cotton prices were mixed, with cash prices rising to close at 73.75 cents per pound and March futures falling to close at 76.68 cents per bushel. Net sales of 402,400 running bales (RB) were reported for 2017-2018, up 33 percent from the previous week and 75 percent from the prior four-week average. Increases were reported for China, Pakistan, Turkey, Indonesia and Vietnam. Exports of 20,800 RB were up 63 percent from the previous week and from the prior four-week average. The primary destinations were to China, India, Vietnam, Japan and Peru.
Wheat prices up at the close of last week, with cash prices gaining 3 cents to close at $4.23 per bushel and March futures also gaining 3 cents to close at $4.66 per bushel. Net sales totaled 393,400 MT for delivery in the 2017-2018 marketing year were up 36 percent from the previous week and 67 percent from the prior four-week average. Increases were for Mexico, South Korea, Indonesia, Nigeria and Japan. Exports of 467,800 MT were down 9 percent from the previous week but up 17 percent from the prior four-week average. The primary destinations were to Japan, Indonesia, Algeria, Morocco and Nigeria.
Corn prices were unchanged at the close of last week, with cash prices holding steady at $3.74 per bushel and March futures remaining at $3.62 per bushel. Net sales of 1,769,600 MT for 2017-2018 were down 4 percent from the previous week but up 27 percent from the prior four-week average. Increases were reported for South Korea, Egypt, Spain, Japan and Colombia. Exports of 961,200 were down 8 percent from the previous week but up 22 percent from the prior four-week average. The destinations were primarily to Japan, Mexico, South Korea, Peru and Colombia.
Grain sorghum cash prices were lower at the close of last week, losing 22 cents to close at $5.79 per cwt. Net sales of 73,600 MT for 2017-2018 resulted as increases for China, Mexico and Japan. Exports of 125,600 MT were down 49 percent from the previous week and 15 percent from the prior four-week average. The destinations were to China, Japan and Mexico.
Milk prices were lower at the close of last week, with February Class III milk futures losing 16 cents to end the week at $13.47 per cwt.
This week’s U.S. Drought Monitor for Texas showed abnormally dry conditions for the state, with 90.24 percent of Texas still in some stage of drought intensity, up 3.51 percentage points from last week. On the national level, drought conditions improved slightly, with 66.95 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.15 percentage points from last week.

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.