TDA Market Recap, Feb. 16 2016

Source: Texas Department of Agriculture
For the week ending Feb. 12, 2016, Texas feeder cattle auctions reported prices steady to $10 lower, with instances of $4 to $5 higher. Wholesale Beef values were lower, with Choice losing $2.73 to close at $216.08 per hundredweight (cwt) and Select Grade losing $4.05 to close at $212.53 per cwt.
For the time period of Jan. 25-31, the USDA NASS Field Office reported supplemental feeding continued across much of the state. Pasture quality deteriorated in Northeast Texas due to wet conditions, while South Texas pastures suffered from a lack of rainfall. Warm weather helped growth in the Blacklands.
For the time period of Jan. 29-Feb. 4, net sales totaled 10,600 metric tons (MT) for 2016, which were up 12 percent from the previous week but down eight percent from the prior four-week average. Increases were reported for Japan, South Korea and Hong Kong. Exports totaled 11,000 MT, which were down 11 percent from the previous week but up two percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were lower at the end of last week, with cash prices losing 0.75 cents to close at 57.37 cents per pound. March futures prices were lower as well, losing 0.70 cents to close at 58.90 cents per pound. The USDA NASS Field Office reported statewide cotton harvest was nearing completion at 98 percent, two points behind normal. Net upland sales totaled 227,700 round bales (RB) for 2015-2016; this is down 10 percent from the previous week but up 22 percent from the prior four-week average. Increases were reported for Turkey, Colombia and Vietnam. Exports totaled 180,500 RB and were down 23 percent from the previous week but up 19 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Indonesia.
Wheat prices were lower at the end of last week, with cash prices losing $0.01 to close at $3.59 per bushel. March futures prices were down, losing $0.02 to close at $4.44 per bushel. The USDA NASS Field Office reported that the Winter Wheat and oats continued to progress, with some producers in areas of the Northern High Plains beginning to top dress in anticipation of spring growth. Net sales totaled 263,300 MT for delivery in the 2015-2016 marketing year. Sales were up noticeably from the previous week and six percent from the prior four-week average. Increases were reported for Mexico, Indonesia and Japan. Exports totaled 376,500 MT and were up 64 percent from the previous week and 11 percent from the prior four-week average. The primary destinations were Japan, Mexico and Taiwan.
Corn prices were lower at the end of last week, with corn cash prices losing $0.03 to close at $3.64 per bushel. March futures prices also lost $0.03 to close at $3.59 per bushel. Field preparations for corn and sorghum planting were active in areas of the Blacklands and South Texas, while planting of both crops had begun in areas of the Lower Valley. Net sales totaled 405,000 MT for 2015-2016 and were down 64 percent from the previous week and 57 percent from the prior four-week average. Increases were reported for Japan, Colombia and Taiwan. Exports totaled 528,700 MT and were down 20 percent from the previous week and 16 percent from the prior four-week average. The primary destinations were Mexico, Colombia and Japan. Grain sorghum cash prices were down, losing $0.07 to close at $5.47 per cwt.
Milk prices were higher at the end of last week, with February Class III milk futures gaining $0.09 to close at $13.87 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with nearly 12 percent of Texas in some stage of drought intensity — this is up 9.65 percentage points from last week. None of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions worsened slightly, with 29.18 percent of the U.S. experiencing abnormal dryness or some degree of drought, up .26 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.