TDA Market Recap for Sept. 8, 2014

Source:  Texas Department of Agriculture Market News
For the week ending Sept. 6, 2014, feeder cattle prices quoted by Texas auctions were steady to $10 higher per hundredweight (cwt) early in the week, and then $1 to $8 higher later in the week. Texas direct feeder cattle sales were $3 to $10 higher. Fed cattle cash prices were more than $6 higher. Wholesale beef values were higher. Prices strengthened across the cattle complex last week, starting with beef values and then carrying through to the feeder cattle. Limited supplies and strong demand continue to support the market. Beef exports were down four percent from the previous week, but up four percent from the prior four-week average. Export shipments were down nine percent from a week earlier and 10 percent below the average.
Cotton prices were lower due to rain in India, increased rain chances on the Texas High Plains, rumors that China will restrict imports and encourage use of its domestic crop, expectations for larger world carryover stocks, and disappointing export data. USDA NASS reported that 50 percent of the U.S. crop is rated in good to excellent condition, down a point from last week, but better than the 45 percent at this time last year. Only 16 percent of the crop is rated poor to very poor, unchanged from a week ago. U.S. cotton is progressing at a faster than normal pace, with bolls opening on 31 percent of the acreage compared to 27 percent on average.
In Texas, 35 percent of the crop is rated in good to excellent condition, also down a point from last week, and 25 percent is poor to very poor, up one point. Bolls are opening on 33 percent of the acreage, well above average, and nine percent of the crop is harvested.  Cotton export sales were down seven percent from the previous week and 43 percent lower than the prior four-week average. Exports were up eight percent from a week ago, but down six percent from the average.
Wheat prices were lower as there were no significant changes to market fundamentals. Ample world supplies and soft demand continue to pressure prices. Concerns about the quality of U.S. and European spring wheat, as well as ongoing tensions in Ukraine are helping keep a floor under the market. Texas growers are making preparations to seed this fall’s winter wheat crop. Wheat export sales were down 58 percent from the previous week and down 56 percent from the prior four-week average. Shipments were up 60 percent from a week earlier and 56 percent higher than the average.
Corn and grain sorghum prices were lower amid ongoing expectations for a record-large corn crop. The advancing harvest in Texas and other southern states added to the pressure on prices. There was a chance of frost in the northern Corn Belt, but overall crop condition continued to improve. USDA NASS reported that 74 percent of the U.S. corn crop was rated in good to excellent condition, up one point from a week ago. Only seven percent of the crop was in poor to very poor condition, unchanged from last week, and much lower than the 16 percent at this time last year.
Texas corn was rated 67 percent good to excellent, up two points from a week ago. Fifty-five percent of the crop has been harvested, equal to the five year average. U.S. grain sorghum also was in mostly good condition. Texas’ grain sorghum crop is 64 percent harvested. Corn export sales for the old-crop 2013-2014 marketing year were again a net negative as cancellations outweighed new sales for the second consecutive week and third of the past four. Corn sales for the new-crop 2014-2015 year were down 24 percent from a week earlier and down 29 percent from the prior four-week average.
Most of the state recorded rainfall last week with totals of one-half inch or more common in many areas. Last week’s U.S. Drought Monitor showed deterioration in conditions across Texas with 87 percent of the state now in some degree of drought or abnormal dryness, up four points from a week ago. Most of the decline was due to abnormal dryness encroaching on formerly drought-free areas of East Texas. Other drought categories showed little change. Nationally, the total acreage experiencing abnormal dryness or some degree of drought declined slightly to 47 percent of the contiguous states.
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

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