TDA Market Recap, Feb. 21, 2017

For the week ending Feb. 17, 2017, Texas feeder cattle auctions reported uneven prices with instances of steady to $7 higher and instances of down to $3 lower. Texas Weekly Direct reported prices steady to $2 lower. Wholesale Boxed Beef values were higher, with Choice Grade gaining $2.23 to close at $190.49 per hundredweight (cwt) and Select Grade gaining $2.66 to close at $189.24 per cwt.
For the time period of Feb. 6-12, the USDA NASS Field Office reported that supplemental feeding was active across the state. Livestock were in good condition. Pastures in the northern part of the state improved, while conditions continued to decline in southern areas.
For the time period of Feb. 3-9, exporters reported net sales of 13,300 metric tons (MT), which were down 16 percent from the previous week and 12 percent from the prior four-week average. Increases were reported primarily for Japan, South Korea and Mexico. Exports totaled 14,600 MT, and were up 7 percent from the previous week and 4 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were down at the end of last week, with cash prices losing 1.75 cents to close at 71.50 cents per pound and March futures losing 3.13 cents to close at 73.48 cents per pound. The USDA NASS Field Office reported that field work in preparation for cotton planting continued in areas of the Blacklands. Net upland sales totaled 222,200 round bales (RB) for 2016-2017, which were up 7 percent from the previous week but down 34 percent from the prior four-week average. Increases were reported primarily for Turkey, Mexico and Vietnam. Exports totaled 344,900 RB, and were down 24 percent from the previous week but up 10 percent from the prior four-week average. The primary destinations were Vietnam, China and Pakistan.
Wheat prices were lower at the end of last week, with cash prices losing 8 cents to close at $3.51 per bushel and March futures losing 11 cents to close at $4.56 per bushel. The USDA NASS Field Office reported that Winter Wheat was in need of moisture in areas of the Low and High Plains. Some producers in the Northern Plains began irrigation. Net sales totaled 569,100 MT for delivery in 2016-2017 marketing year; sales were up 8 percent from the previous week and 10 percent from the prior four-week average. Increases were primarily reported for Mexico, Nigeria and South Korea. Exports totaled 389,100 MT, which were down 36 percent from the previous week and 4 percent from the prior four-week average. The primary destinations were Mexico, South Korea and the Dominican Republic.
Corn prices were lower at the end of last week, with cash prices losing 7 cents to close at $3.63 per bushel and March futures losing 8 cents to close at $3.68 per bushel. The USDA NASS Field Office reported that corn crop preparations continued in areas of Northeast Texas, South Central Texas and the Upper Coast. Net sales totaled 783,500 MT for 2016-2017, and were down 19 percent from the previous week and 35 percent from the prior four-week average. Increases were primarily for Japan, Peru and Mexico. Exports totaled 1,251,700 MT, which were up 11 percent from the previous week and 32 percent from the prior four-week average. The primary destinations were Japan, Mexico and Peru.
Grain sorghum cash prices were lower at the end of last week, losing 12 cents to close at $5.50 per cwt. Net sales totaled 134,900 MT for 2016-2017, and were up noticeably from the previous week and prior four-week average. Increases were for China, Japan and the Republic of South Africa. Exports totaled 153,000 MT, and were up noticeably from the previous week and up 40 percent from the prior four-week average. The primary destinations were China, Japan and the Republic of South Africa.
Milk prices were higher at the close of last week, with February Class III milk futures gaining a penny to close at $16.88 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 11.86 percent of Texas in some stage of drought intensity, up 2.42 percentage points from last week. On the national level, drought conditions worsened slightly as well, with 31.74 percent of the U.S. experiencing abnormal dryness or some degree of drought.

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.