TDA Market Recap, Feb. 20, 2018

For the week ending Feb. 17, 2018, Texas feeder cattle auctions reported mostly steady to higher prices, ranging from $1 to $6 higher, with only two instances of lower pricers. Texas Weekly Direct reported trade activity as active on good demand, and prices were steady to $2 lower per hundredweight (cwt) with the exception of steers weighing over 800 pounds, which sold steady to firm. Fed cattle cash trade was active on very good demand. Compared to last week, live cash trades were $4 higher at $130.00 per cwt. Wholesale Beef values were higher than the previous week, with Choice Grade gaining $3.36 to close at $209.88 per cwt and Select Grade gaining 2.38 to end at $205.12 per cwt. For the time period of Feb. 2 – 8, exporters reported net sales of 10,400 metric tons (MT) for 2018, which were down 44 percent from the previous week and 52 percent from the prior four-week average. Increases were reported for Japan, Mexico, Hong Kong, Taiwan and Canada. Exports of 14,700 MT were down 8 percent from the previous week and from the prior four-week average. The primary destinations were South Korea, Japan, Hong Kong, Mexico and Canada.
 
Cotton prices were down, with cash prices falling to close at 72.00 cents per pound and March futures falling to close at 75.72 cents per bushel. Net sales of 364,800 running bales (RB) were reported for 2017-2018, down 9 percent from the previous week but up 39 percent from the prior four-week average. Increases were reported for Turkey, Vietnam, China, Bangladesh and India. Exports of 17,800 RB were down 15 percent from the previous week but up 12 percent from the prior four-week average. The primary destinations were China, Peru, India and Vietnam.
Wheat prices were up at the close of last week, with cash prices gaining 12 cents to close at $4.35 per bushel and March futures gaining 13 cents to close at $4.79 per bushel. Net sales totaled 311,100 MT for delivery in the 2017-2018 marketing year and were down 21 percent from the previous week and 2 percent from the prior four-week average. Increases were for Japan, Indonesia, Taiwan, Mexico, China and Guatemala. Exports of 489,400 MT were up 5 percent from the previous week and 10 percent from the prior four-week average. The primary destinations were to Japan, Mexico, China, South Korea and Nigeria.
Corn prices were up at the close of last week, with cash prices gaining 6 cents to close at $3.80 per bushel and March futures gaining 6 cents to close at $3.68 per bushel. Net sales of 1,974,500 MT for 2017-2018 were up 12 percent from the previous week and 14 percent from the prior four-week average. Increases were reported for Japan, Mexico, Colombia and Saudi Arabia. Exports of 864,500 were down 10 percent from the previous week but up 7 percent from the prior four-week average. The destinations were Japan, Mexico, Bangladesh, the Philippines and Colombia.
Grain sorghum cash prices were higher at the close of last week, gaining 28 cents to close at $6.07 per cwt. Net sales of 126,900 MT for 2017-2018 were up 73 percent from the previous week but down 24 percent from the prior four-week average. Increases were reported for China and Japan. Exports of 130,100 MT were up 4 percent from the previous week but down 21 percent from the prior four-week average. The destinations were China and Japan.
Milk prices were higher at the close of last week, with February Class III milk futures gaining 2 cents to end the week at $13.49 per cwt.
This week’s U.S. Drought Monitor for Texas showed abnormally dry conditions for the state, with 89.74 percent of Texas still in some stage of drought intensity. On the national level, drought conditions slightly improved, with 60.5 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 6.45 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.