TDA Market Recap, Jan. 13, 2013

Source: Texas Department of Agriculture
For the week ending Jan. 11, 2014, Texas feeder cattle auction prices through mid-week were mostly $3 to $15 higher per hundredweight (cwt) compared to their last sales prior to the holidays, with a few as much as $25 higher. Auctions later in the week were steady to $3 higher compared to the previous week. Texas direct feeder cattle prices were steady to $2 higher compared to a week ago. Market fundamentals remain bullish as tight supplies, record high fed cattle prices and grain prices much lower than they were at this time last year continue to support feeder prices. Fed cattle cash prices were up $2.47 from the previous week, which brought a new record high of $138.99 per cwt. Wholesale beef values also established record-high prices.
Beef export sales totaled 5,800 metric tons, with Hong Kong and Japan as the leading buyers.
Cotton prices were lower. U.S. production and projected U.S. and world ending stocks reported by USDA came in somewhat higher than expected. In addition, an unofficial survey of cotton growers indicated acreage may increase in 2014, and changes in Chinese cotton price support policies could sharply curtail their purchases this year. Weekly cotton export sales came in lower than expected at 68,100 bales, which is down 21 percent from the previous week and 62 percent lower than the prior four-week average. However, shipments were up 48 percent from a week earlier and up 37 percent from the average.
Corn and grain sorghum prices ended the week higher after USDA reports showed lower than expected U.S. production and Jan. 1 stocks on hand. In addition, projected U.S. and world supplies at the end of the marketing year came in lower than expected. However, this year’s U.S. corn crop was still a record-large 13.9 billion bushels, which will likely limit price gains. Corn export sales for the week were up one percent from the previous week, but down 79 percent from the four-week average. Japan and Mexico were the leading buyers. Shipments were down 29 percent from a week earlier and 34 percent below the average.
Wheat prices were lower. USDA reported winter wheat seedings for harvest in 2014 at 41.9 million acres, down three percent from a year ago and much lower than expected. However, U.S. and world projected ending supplies were higher, and those large supplies continued to pressure the market. U.S. wheat export sales for the week were down 55 percent from the previous week and 76 percent lower than the prior four-week average.
Futures markets were higher for feeder cattle, fed cattle, corn and lumber, but lower for cotton and wheat.
Most of the state south of I-20 recorded precipitation during the week, with totals ranging from only a few hundredths of an inch in many western locations to an inch or more in much of East Texas. Last week’s U.S. Drought Monitor showed little change from the previous report. While there were some minor shifts in categories and regions, the overall percentage of the state rated as abnormally dry or in drought held steady at 72 percent. Most of the state east of I-35 and north of I-10, and sections of West and South Texas were free 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.