TDA Market Recap, Jan. 9, 2018

For the week ending Jan. 6, 2018, most Texas feeder cattle auctions were closed due to the holidays. However, later in the week, several auctions opened and reported prices steady to $8 higher per hundredweight (cwt). Texas Weekly Direct reported trade activity and demand as moderate, with prices steady to $4 lower. Fed cattle cash prices traded $1- $1.50 lower from $121.50 – $122 per cwt. Wholesale Beef values were higher than the previous week, with Choice Grade gaining $9.95 to close at $209.51 per cwt and Select Grade gaining $14.44 to close at $202.32 per cwt.
For the time period of Dec. 22-28, exporters reported net sales of 2,400 metric tons (MT) for 2017, which were down 73 percent from the previous week and 63 percent from the prior four-week average. Increases were reported for Canada, Hong Kong, Japan and Mexico. Exports of 12,500 MT were down 23 percent from the previous week and 24 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were mixed, with cash prices losing .25 cents to close at 74.75 cents per pound and March futures gaining .14 cents to end at 78.01 cents per bushel. Net sales of 193,900 running bales (RB) were reported for 2017-2018, which were up 19 percent from the previous week but down 17 percent from the prior four-week average. Increases were reported for India, Vietnam and Turkey. Exports of 10,400 RB were down 49 percent from the previous week and 43 percent from the prior four-week average. The primary destinations were China, India and Vietnam.
Wheat prices were up at the close of last week, with cash prices gaining 15 cents to close at $3.90 per bushel and March futures gaining 16 cents to close at $4.38 per bushel. Net sales totaled 131,000 MT for delivery in the 2017-2018 marketing year — a marketing year low — and were down 72 percent from the previous week and 76 percent from the prior four-week average. Increases were for the Philippines, Mexico and Nigeria. Exports of 228,100 MT were down 56 percent from the previous week and 49 percent from the prior four-week average. The primary destinations were Mexico, Thailand and Taiwan.
Corn prices were down at the close of last week, with cash prices losing 7 cents to close at $3.60 per bushel and March futures losing 1 cent to close at $3.51 per bushel. Net sales of 101,200 MT for 2017-2018 — a marketing year low — and were down 92 percent from the previous week and 91 percent from the prior four-week average. Increases were reported for South Korea, Taiwan and Mexico. Exports of 657,600 MT were up 26 percent from the previous week and 5 percent from the prior four-week average. The destinations were primarily to Mexico, Japan and South Korea.
Grain sorghum cash prices were higher at the close of last week, gaining 1 cent to close at $5.76 per cwt. Exports of 75,400 MT were down 38 percent from the previous week and 59 percent from the prior four-week average. The primary destination was China.
Milk prices were lower at the close of last week, with January Class III milk futures closing to end the week at $13.94 per cwt.
This week’s U.S. Drought Monitor for Texas showed slightly moderate drought conditions for the state, with 66.63 percent of Texas still in some stage of drought intensity, up 3.79 percentage points from last week. On the national level, drought conditions worsened, with 55.54 percent of the U.S. experiencing abnormal dryness or some degree of drought, up .85 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.