TDA Market Recap, July 10, 2017

For the week ending July 7, 2017, most Texas feeder cattle auctions were inactive due to the Independence Day holiday. Texas Weekly Direct reported prices steady to $2 higher. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $3.74 to end at $218.84 per hundredweight (cwt) and Select Grade losing $9.24 to end at $208.42 per cwt.
For the time period of June 26 – July 2, the USDA NASS Field Office reported that livestock across the state were in mostly good condition. Dry pasture conditions were a concern for livestock grazing in some areas of the Southern High Plains. Pasture and range conditions were mostly fair to good. Pastures responded well to recent showers across many areas of the state. Several wildfires were set off by lightning in the Northern Low Plains. Hay was damaged by the wildfires, but no additional crop losses were reported.
For the time period of June 23-29, exporters reported net sales of beef totaling 17,000 metric tons (MT), which were up 52 percent from the previous week and 36 percent from the prior four-week average. Increases were reported for Japan, Hong Kong and South Korea. Exports totaled 14,900 MT, and were unchanged from the previous week but up 7 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the close of last week, with cash prices gaining 0.75 cents to end at 68.75 cents per pound and July futures gaining 1.46 cents to end at 75.29 per bushel. The USDA NASS Field Office reported that cotton producers in some areas of the Northern High Plains were spraying for weeds, while others were fertilizing fields. Storms in the Northern Low Plains damaged cotton in some areas and slowed planting for others. Cotton was emerging in the Southern Low Plains. Cotton in the Trans-Pecos was in the bloom stage, while cotton in South Texas and South Central Texas was setting bolls.
Wheat prices were lower at the close of last week, with cash prices losing 28 cents to close at $4.73 per bushel and July futures losing 24 cents to end at $5.27 per bushel. The USDA NASS Field Office reported that the 2017 wheat harvest was in the books for most of the state. Some areas of the Northern High Plains continued harvest between storms. Net sales totaled 375,300 MT. Increases were reported primarily for the Philippines, South Korea and Mexico. Exports totaled 541,100 MT and were reported primarily to the Philippines, Mexico and Italy.
Corn prices were pretty steady at the close of last week, with cash prices gaining a penny to close at $3.91 per bushel, and July corn futures remaining at $3.82 per bushel. The USDA NASS Field Office reported that some corn fields in the Southern High Plains were showing heat stress. Corn silage harvest continued in the Cross Timbers. Corn was maturing and nearing harvest in the Upper Coast and South Central Texas. Net sales totaled 140,300 MT, which were down 56 percent from the previous week and 69 percent from the prior four-week average. Increases were reported for the Netherlands, Mexico and South Korea. Exports totaled 1,108,900 MT, and were up 9 percent from the previous week but unchanged from the prior four-week average. The primary destinations were Japan, Mexico and the Netherlands.
Grain sorghum cash prices were higher, with cash prices gaining two cents to end at $5.84 per cwt. The USDA NASS Field Office reported that sorghum planting neared completion in the Northern High Plains. Harvest was underway in the Upper Coast and Lower Valley. Net sales totaled 71,500 MT and were reported for China, Mexico and Japan. Exports totaled 13,800 MT, which were down 82 percent from the previous week and 75 percent from the prior four-week average. The destinations were Japan, and Mexico.
Milk prices were lower at the close of last week, with July Class III milk futures losing 10 cents to end at $15.58 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 26.49 percent of Texas in some stage of drought intensity, up 2.97 percentage points from last week. On the national level, drought conditions worsened slightly as well, with 22.35 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 0.75 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.