TDA Market Recap, July 16, 2012

Source: Texas Department of Agriculture

For the week ending July 14, feeder cattle prices at Texas auctions were mostly $3 to $10 lower per hundredweight (cwt) compared to pre-July 4 holiday sales, with a few as much as $20 lower on calves. Texas feeder cattle sales directly to stocker operations and feedlots were $2 to $7 lower. At Oklahoma City National Stockyards, feeder cattle were $2 to $7 lower and calves were down $10 to $20.
Higher grain prices, lower fed cattle, hot temperatures and poor pasture conditions all contributed to the decline. The fed cattle cash trade was more than $2 lower per cwt following a drop in wholesale beef prices. Cotton prices ended the week higher on optimism that demand will improve after China reported its economy grew more than expected during the previous quarter. Corn, grain sorghum and wheat were again higher amid ongoing concerns about crop damage due to hot, dry weather in the Corn Belt.
As for futures markets, wheat, corn and cotton were higher, but feeder cattle, fed cattle and lumber were lower.
Most of the state recorded precipitation during the week with many areas south and east of a line from Del Rio to Dallas reporting an inch or more. The heaviest rains fell in parts of Central Texas and in an area from Rockport on the coast, north to Brenham and east to Jasper − with some places reporting more than 10 inches of rain.
The weekly USDA NASS crop progress and condition report showed cotton in mostly fair to good condition with 76 percent of the acreage squaring and 25 percent setting bolls, both ahead of the average for this date. Corn was rated in mostly good to fair condition with 83 percent of the crop tasseled and 48 percent mature, both well ahead of normal. Grain sorghum planting was completed in northern areas and 28 percent has been harvested in southern counties, ahead of the 20 percent average. The crop was reported in mostly good to fair condition. Wheat harvest was nearing completion earlier than normal. Peanuts were rated in mostly fair to good condition with 56 percent of the acreage pegging, and rice was in mostly good to excellent condition with 58 percent of the crop headed.
Pastures and hay fields improved significantly in areas that received adequate rain, but declined elsewhere. Statewide, 21 percent of the pasture acreage was rated in good to excellent condition;41 percent was rated poor to very poor; and the remainder was rated in fair condition.

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 500-600 pound medium and large No.1 steers at the Oklahoma City National Stockyards. Futures prices are quoted for the nearest month contract on the last trading day of the week.
For additional information, contact TDA at 800-835-5832 or visit our website, www.TexasAgriculture.gov.