TDA Market Recap for July 5, 2016

Source: Texas Department of Agriculture
For the week ending July 1, 2016, Texas feeder cattle auctions reported prices steady to $15 higher with  instances of $5 to $15 lower. Texas Weekly Direct reported prices steady to $5 higher. Wholesale Beef values were lower, with Choice Grade losing $1.87 to close at $208.73 per hundredweight (cwt) and Select Grade losing $3.66 to close at $193.73 per cwt.
For the time period of June 17-23 exporters reported net sales of 14,600 metric tons (MT) for 2016, which were down 10 percent from the previous week, but up eight percent from the prior four-week average.  Increases were reported for South Korea, Hong Kong and Japan. Exports totaled 14,300 MT, which were down four percent from the previous week, but up seven percent from the prior four-week average. The primary destinations were Japan, South Korea and Canada.
For the time period of June 20-26 USDA NASS Field Office reported hot, dry weather across much of the Blacklands and Northeast Texas affected cattle, although they were reported in good condition. Livestock body condition was generally good across the state and continued to benefit from adequate pasture. Ponds and stock tanks remained at capacity in most of the state. Livestock producers reported increasing horn fly populations. Hay production and weed control activities continued.
Cotton prices were higher at the end of last week, with cash prices gaining 0.75 cents to close at 62.37 cents per pound and July futures prices gaining 0.14 cents to close at 63.62 cents per pound. Net upland sales totaled 58,700 round bales (RB) for 2015/2016, which were down 66 percent from the previous week and 50 percent from the prior four-week average. Increases were reported for Indonesia, India and Vietnam. Exports totaled 229,700 RB, which were up 39 percent from the previous week and 23 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Indonesia. The USDA NASS Field Office reported cotton made good progress in most areas of the Edwards Plateau, the Coastal Bend, and the Upper Coast. Cotton reached the squaring stage in areas of the Southern High Plains and setting bolls in South Texas.
Wheat prices were lower at the end of last week, with cash prices losing $0.08 to close at $3.22 per bushel and July wheat futures losing $0.19 to close at $3.94 per bushel. Net sales totaled 645,300 MT, which were reported for delivery in marketing year 2016/2017. The primary destinations were South Korea, Colombia and Indonesia. Exports totaled 530,700 MT, which were reported to the Philippines, South Africa and Venezuela. The USDA NASS Field Office reported that the winter wheat harvest was in full swing across the state. Wheat and oats were damaged by previous weeks’ excessive rainfall in areas of the Cross Timbers. Throughout the High Plains, wheat harvest was progressing well. In the Northern Low Plains, winter wheat harvest was nearing completion.
Corn prices were lower at the end of last week with cash prices losing $0.25 to close at $3.53 per bushel and July corn futures losing $0.32 to close at $3.53 per bushel. Net sales totaled 468,500 metric tons (MT) for 2015/2016, which were down 46 percent from the previous week and 59 percent from the prior four-week average. Increases were reported for South Korea, Japan and Vietnam. Exports totaled 1,497,200 MT, which were up 24 percent from the previous week and 29 percent from the prior four-week average. The primary destinations were Japan, Mexico and Vietnam. The USDA NASS Field Office reported Corn and sorghum progressed well in most areas of North and East Texas, though lack of moisture was causing some fields to dry out. Corn dried down as harvest approached in the Coastal Bend and corn leaf diseases affected fields in the Upper Coast. Some sorghum fields were being pressured by Johnsongrass in areas of the Blacklands and increasing sugarcane aphid numbers were reported in the Coastal Bend. Grain Sorghum cash prices were lower at the end of last week, losing $0.46 to close at $5.28 per cwt.
Milk prices were lower at the close of last week, with July Class III milk futures losing $0.18 to close at $15.07per cwt.
This week’s U.S. Drought Monitor for Texas showed steady drought conditions for the state, with only 1.38 percent of Texas still in some stage of drought intensity, on par with last week. Additionally, none of the state remains in severe, extreme, or exceptional drought. On the national level, drought conditions worsened slightly, with 43.9 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 2.16 percentage points from last week.