TDA Market Recap, Jan. 30, 2017

For the week ending Jan. 27, 2017, Texas feeder cattle auctions reported uneven prices with instances of steady to $15 higher and steady to $5 lower. Texas Weekly Direct reported prices steady to $3 lower. Wholesale beef values were higher, with Choice grade gaining 93 cents to close at $192.70 per hundredweight (cwt) and Select grade gaining $2.11 to close at $188.94 per cwt. For the time period of January 13-19, exporters reported net sales of beef totaling 21,800 metric tons (MT) and with increases being primarily reported for South Korea, Japan and Hong Kong. Exports totaled 12,800 MT and were reported primarily for Japan, South Korea and Mexico.
Cotton prices were uneven at the end of last week, with cash prices holding steady to remain at 72.75 cents per pound and March futures gaining 0.22 cents to close at 74.85 cents per pound. Net upland sales totaled 457,000 round bales (RB) for 2016-2017—a marketing-year high—and were up 32 percent from the previous week and 65 percent from the prior four-week average. Increases were reported primarily for China, Turkey and Pakistan. Exports totaled 227,700 RB and were up 2 percent from the previous week, but down 5 percent from the prior four-week average. The primary destinations were China, Vietnam and Indonesia.
Wheat prices were lower at the end of last week, with cash and March futures both losing 11 cents to close at $3.24 per bushel and $4.34 per bushel, respectively. Net sales totaled 853,400 MT for delivery in the 2016-2017 marketing year—a marketing-year high—and were up noticeably from the previous week and from the prior four-week average. Increases were reported primarily for Morocco, Indonesia and Mexico. Exports totaled 296,700 MT and were down 25 percent from the previous week and 20 percent from the prior four-week average. The primary destinations were Nigeria, South Korea and Guatemala.
Corn prices were lower at the end of last week with cash prices losing 3 cents to close at $3.57 per bushel and March futures losing 7 cents to close at $3.63 per bushel. Net sales totaled 1,370,400 MT for 2016-2017 and were up 2 percent from the previous week and 63 percent from the prior four-week average. Increases were primarily reported for Japan, Colombia and Mexico. Exports totaled 978,500 MT and were up six percent from the previous week and 22 percent from the prior four-week average. The primary destinations were Mexico, Taiwan and South Korea.
Grain Sorghum cash prices were lower at the end of last week losing 12 cents to close at $5.40 per cwt. Net sales totaled 76,500 MT and were up 34 percent from the previous week and noticeably from the prior four-week average. Increases were reported for Japan, Mexico and China. Exports totaled 124,400 MT and were up noticeably from the previous week and 22 percent from the prior four-week average. The primary destinations were China, Mexico and Japan.
Milk prices were lower at the close of last week, with February Class III milk futures losing 14 cents to close at $16.62 per cwt.
This week’s U.S. Drought Monitor for Texas showed improving drought conditions for the state, with 7.76  percent of Texas still in some stage of drought intensity, down 9.46 percentage points from last week. On the national level, drought conditions improved as well, with 32.81 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 6.69 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.