TDA Market Recap, Feb. 6, 2018

For the week ending Feb. 2, 2018, Texas feeder cattle auctions reported mostly steady to  higher prices, with prices ranging from $1 to $10 higher per hundredweight (cwt) and some instances of $5 to $10 lower. Texas Weekly Direct reported trade activity as active with good demand and prices unevenly steady.
Fed cattle cash prices traded $1 lower at $126.00 per cwt. Wholesale Beef values were higher than the previous week, with Choice Grade gaining $2.27 to close at $209.10 per cwt and Select Grade gaining $1.62 cents to end at $203.45 per cwt. For the time period of Jan. 19-25, exporters reported net sales of 25,200 metric tons (MT) for 2018. Increases were reported for Japan, South Korea, Mexico, Hong Kong and Canada. Exports of 15,400 MT were reported for 2018. The primary destinations were to Japan, South Korea, Hong Kong, Mexico and Taiwan.
Cotton prices were down, with cash prices losing 3.5 cents to close at 73.50 cents per pound and March futures falling 3.18 cents to end at 77.30 cents per bushel. Net sales of 303,300 running bales (RB) were reported for 2017-2018, up noticeably from the previous week and up 50 percent from the prior four-week average. Increases were reported for Vietnam, Turkey, China, Indonesia and Taiwan. Exports of 12,800 RB were down 24 percent from the previous week but up 5 percent from the prior four-week average. The primary destinations were to India, China, Peru and Indonesia.
Wheat prices were up at the close of last week, with cash prices gaining 20 cents to close at $4.20 per bushel and March futures also gaining 20 cents to close at $4.63 per bushel. Net sales totaled 289,100 MT for delivery in the 2017-2018 marketing year, which were down 32 percent from the previous week but up 48 percent from the prior four-week average. Increases were for Japan, Mexico, the Philippines, Ecuador and China. Exports of 515,100 MT were up 37 percent from the previous week and 57 percent from the prior four-week average. The primary destinations were to Japan, the Philippines, Indonesia, Mexico and Guatemala.
Corn prices were up at the close of last week, with cash prices gaining 5 cents to close at $3.74 per bushel and March futures gaining 5 cents to close at $3.62 per bushel. Net sales of 1,850,600 MT for 2017-2018 were up 28 percent from the previous week and 93 percent from the prior four-week average. Increases were reported for Mexico, Japan, Colombia, South Korea and Egypt. Exports of 1,046,100 — a marketing year high — were up 75 percent from the previous week and 51 percent from the prior four-week average. The destinations were primarily to Japan, Colombia, Mexico, South Korea and Morocco.
Grain sorghum cash prices were higher at the close of last week, gaining 13 cents to close at $6.01 per cwt. Net sales of 242,400 MT for 2017-2018 were up 46 percent from the previous week and 65 percent from the prior four-week average. Increases were reported for China and Japan. Exports of 246,900 MT were up 13 percent from the previous week and up noticeably from the prior four-week average. The destinations were to China, Japan and Mexico.
Milk prices were higher at the close of last week, with February Class III milk futures gaining 31 cents to end the week at $13.63 per cwt.
This week’s U.S. Drought Monitor for Texas showed abnormally dry conditions for the state, with 86.73 percent of Texas still in some stage of drought intensity, up 1.23 percentage points from last week. On the national level, drought conditions worsened, with 67.10 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 4.65 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.