TDA Market Recap, July 11, 2016

Source: TDA
For the week ending July 8, 2016, Texas feeder cattle auctions reported prices steady to $8 higher, with  one instance of $2 lower. Texas Weekly Direct reported prices $1 to $8 higher. Wholesale Beef values were higher, with Choice Grade gaining $0.52 to close at $209.35 per hundredweight (cwt) and Select Grade gaining $1.49 to close at $196.28 per cwt. For the time period of June 27 – July 3, the USDA NASS Field Office reported that range and pasture were beginning to show signs of stress but were still in mostly good condition. Ponds and stock tanks remained at capacity statewide, and overall, livestock were in good condition. In the Northern Low Plains, the Upper Coast and South Texas, livestock producers reported an abundance of forage still available for grazing on native range and pastures. For the time period of June 24-30, exporters reported net sales of 15,400 metric tons (MT) for 2016, which were up six percent from the previous week and five percent from the prior four-week average. Increases were reported for South Korea, Japan and Mexico. Exports totaled 13,200 MT, which were down seven percent from the previous week and three percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the end of last week, with cash prices gaining 1.25 cents to close at 63.62 cents per pound and July futures prices gaining 2.17 cents to close at 65.92 cents per pound. The USDA NASS Field Office reported cotton was at the squaring stage in areas of the Southern Plains and setting bolls in South Texas. Net upland sales totaled 201,900 round bales (RB) for 2015-2016, which were up noticeably from the previous week and prior four-week average. Increases were reported for Vietnam, India and Pakistan. Exports totaled 307,100 RB, which were up 34 percent from the previous week and 66 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and China.
Wheat prices were higher at the end of last week, with cash prices gaining $0.07 to close at $3.25 per bushel and July wheat futures gaining $0.03 to close at $4.05 per bushel. The USDA NASS Field Office reported Winter Wheat harvest neared completion throughout the state. Wheat and oat crops in areas of the Cross Timbers were abandoned due to heavy rainfall received in late June. Net sales totaled 825,300 MT were reported for delivery in the 2016-2017 marketing year. The primary destinations were unknown, the Philippines and Japan. Exports totaled 533,600 MT and were reported for the Philippines, Thailand and Mexico.
Corn prices were higher at the end of last week, with cash prices gaining $0.13 to close at $3.48 per bushel and July corn futures gaining $0.06 to close at $3.50 per bushel. The USDA NASS Field Office reported corn was at the denting stage and drying out in areas of the Blacklands and South Texas. Sorghum progressed well and reached the coloring stage in areas of South Texas. Net sales totaled 369,800 MT for 2015-2016 — this was down 21 percent from the previous week and 61 percent from the prior four-week average. Increases were reported for Taiwan, Japan and South Korea. Exports totaled 1,270,500 MT, which were down 15 percent from the previous week and six percent from the prior four-week average. The primary destinations were Japan, Taiwan and Mexico.
Grain sorghum cash prices were higher, gaining $0.24 to close at $5.18 per cwt. Net sales totaled 58,000 MT for 2015-2016, which were down 31 percent from the previous week and 45 percent from the prior four-week average. Increases were reported for unknown destinations and China. Exports totaled 63,800 MT, which were up 13 percent from the previous week but down 25 percent from the prior four-week average. The destinations were China and Mexico.
Milk prices were higher at the close of last week, with July Class III milk futures gaining $0.23 to close at $15.20 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight worsening in drought conditions for the state, with nearly three percent of Texas still in some stage of drought intensity, up 1.55 percentage points from last week. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions also worsened slightly, with 56.61 percent of the U.S. experiencing abnormal dryness or some degree of drought.