TDA Market Recap, Feb. 13, 2017

For the week ending Feb. 10, 2017, Texas feeder cattle auctions reported uneven prices, with instances of steady to $12 higher and $3 to $5 lower. Texas Weekly Direct also reported uneven prices, with instances of $2 lower to $4 higher. Wholesale Beef values were lower, with Choice Grade losing $3.60 to close at $187.63 per hundredweight (cwt) and Select Grade losing $5.00 to close at $185.65 per cwt.
For the time period of Jan. 30 – Feb. 5, the USDA NASS Field Office reported that supplemental feeding continued across much of the state. Pasture quality deteriorated in the Coastal Bend from the freeze, while South Texas pastures suffered from a lack of rainfall. Warm weather helped growth in the Northern Low Plains and Southeast Texas.
For the time period of Jan. 27 – Feb. 2, 2017, exporters reported net sales of 15,900 metric tons (MT) and were down 17 percent from the previous week. Increases were reported for South Korea, Japan and Canada. Exports totaled 13,700 MT and were down 11 percent from the previous week. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the end of last week, with cash prices gaining 0.25 cents to close at 72.75 cents per pound and March futures gaining 0.19 cents to close at 75.82 cents per pound. The USDA NASS Field Office reported that cotton harvest was nearing completion in the High Plains. Net upland sales totaled 208,100 round bales (RB), which were down 36 percent from the previous week and 39 percent from the prior four-week average. Increases were reported for Turkey, Vietnam and Indonesia. Exports totaled 452,100 RB — a marketing-year high — and were up 29 percent from the previous week and 79 percent from the prior four-week average. The primary destinations were China, Vietnam and Turkey.
Wheat prices were higher at the end of last week, with cash prices gaining 26 cents to close at $3.54 per bushel and March futures gaining 25 cents to close at $4.61 per bushel. The USDA NASS Field Office reported that Winter Wheat was in fair condition across much of the state. Wheat crops emerged and irrigation systems were active in areas of the Southern High Plains and South Texas. In the Blacklands and Northeast Texas, producers were beginning to top dress in anticipation of spring growth. Net sales totaled 527,300 MT, which were up 17 percent from the previous week and 9 percent from the prior four-week average. Increases were reported for Japan, Mexico and Chile. Exports totaled 606,100 MT, which were up 87 percent from the previous week and up noticeably from the prior four-week average. The primary destinations were China, the Philippines and Peru.
Corn prices were higher at the end of last week, with cash prices gaining 12 cents to close at $3.69 per bushel and March futures gaining 11 cents to close at $3.75 per bushel. The USDA NASS Field Office reported field preparations for corn continued in the Blacklands, South Central, South Texas and the Lower Valley. Net sales totaled 971,700 MT, which were down 15 percent from the previous week and 13 percent from the prior four-week average. Increases were reported primarily for Japan, Mexico and South Korea. Exports totaled 1,124,700 MT, which were up 47 percent from the previous week and 34 percent from the prior four-week average. The primary destinations were Mexico, Japan and Colombia.
Grain sorghum cash prices were higher at the end of last week, gaining 24 cents to close at $5.61 per cwt. Net sales totaled 8,300 MT, which were down 86 percent from the previous week and 84 percent from the prior four-week average. Increases were reported primarily for China, Japan and Mexico. Exports totaled 60,700 MT, and were down 70 percent from the previous week and 56 percent from the prior four-week average. The primary destinations were China, Mexico and Indonesia.
Milk prices were higher at the close of last week, with February Class III milk futures gaining 7 cents to close at $16.86 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight worsening in drought conditions for the state, with 9.44 percent of Texas still in some stage of drought intensity, up 1.78 percentage points from last week. On the national level, drought conditions improved slightly, with 31.01 percent of the U.S. experiencing abnormal dryness or some degree of drought.

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.” MBF = thousand board feet.
For additional information, contact TDA at 800-835-5832 or visit www.TexasAgriculture.gov