TDA Market Recap, Feb. 29, 2016

Source: Texas Department of Agriculture
For the week ending Feb. 26, 2016, Texas feeder cattle auctions reported prices steady to $10 higher, with one instance of prices $2 lower. Texas Weekly Direct reported prices $1 to $5 higher. Wholesale Beef values were higher, with Choice Grade gaining $4.35 to close at $217.63 per hundredweight (cwt) and Select Grade gaining $2.19 to close at $211.99 per cwt.
For the time period of Feb. 12-18, exporters reported that net sales totaled 12,500 metric tons (MT) for 2016 and were up 64 percent from the previous week and six percent from the prior four-week average. Increases were reported for Japan, South Korea and the Philippines. Exports totaled 10,300 MT and were down 10 percent from the previous week and 12 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were mixed at the end of last week, with cash prices losing 1.25 cents to close at 55.37 cents per pound. March futures prices were higher gaining 0.18 cents to close at 57.92 cents per pound. For the time period of Feb. 15-21, the USDA NASS Field Office indicated that cotton producers in the area of the Edwards Plateau began preparations for the 2016 cotton crop. Net upland sales totaled 110,600 round bales (RB), which were down 64 percent from the previous week and 52 percent from the prior four-week average. Increases were reported for China, Indonesia and Turkey. Exports totaled 171,500 RB and were up five percent from the previous week but down seven percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Mexico.
Wheat prices were lower at the end of last week, with cash prices losing $0.08 to close at $3.60 per bushel. March futures prices dropped $0.11 to close at $4.43 per bushel. The USDA NASS Field Office reported that in areas of the Northern High Plains some producers began irrigation and fertilizer applications on Winter Wheat fields. Producers were concerned with temperatures that were much above average, as wheat began to progress out of the dormancy stage. Dry conditions in the Blacklands were contributing to declining conditions of wheat and oats. Net sales totaled 387,900 MT and were up 53 percent from the previous week and 77 percent from the prior four-week average. Increases were reported for Japan, China and Mexico. Exports totaled 230,000 MT and were down 32 percent from the previous week and 27 percent from the prior four-week average. The primary destinations were Mexico, Japan and South Korea.
Corn prices were lower at the end of last week, with cash and futures prices both losing $0.13 to close at $3.58 and $3.55 per bushel, respectively. The USDA NASS Field Office reported that in areas of the Blacklands, the Upper Coast, South Central, East and South Texas corn planting was active. Sorghum producers prepared for planting in the Blacklands, while planting had begun in areas of the Upper Coast. Net sales totaled 934,400 MT, which were down 11 percent from the previous week but up 10 percent from the prior four-week average. Increases were reported for Japan, Costa Rica and Colombia. Exports totaled 870,700 MT — a marketing-year high — and were up 19 percent from the previous week and 36 percent from the prior four-week average. The primary destinations were Mexico, Japan and Colombia. Grain sorghum cash prices were down, losing $0.18 to close at $5.40 per cwt.
Milk prices were lower at the close of last week, with February Class III milk futures losing $0.01 to close at $13.80 per cwt.
This week’s U.S. Drought Monitor for Texas showed improving drought conditions for the state, with 22.39 percent of Texas still in some stage of drought intensity. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved as well, with 29.9 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.