TDA Market Recap, July 18, 2017

For the week ending July 14, 2017, most Texas feeder cattle auctions reported uneven prices with instances of $3 to $10 lower and steady to $5 higher. Texas Weekly Direct reported prices “Unevenly steady”. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $8.19 to end at $209.35 per hundredweight (cwt) and Select Grade losing $7.25 to end at $195.42 per cwt. For the time period of July 3 – 9 the USDA NASS Field Office reported that livestock was in good condition throughout the state. In the Cross Timbers, Blacklands, and Northeast Texas, livestock producers reported an abundance of forage still available for grazing on native range and pastures. Hay production activities were underway. For the time period of June 30 – July 6 exporters reported that net sales of beef totaled 12,500 metric tons (MT) and were down 27 percent from the previous week and 7 percent from the prior four-week average. Increases were reported primarily for Japan, South Korea and Hong Kong. Exports totaled 11,700 MT and were down 22 percent from the previous week and 20 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were lower at the close of last week with cash prices losing 1.00 cents to end at 65.75 cents per pound and October futures losing 0.54 cents to end at 67.18 per bushel. The USDA NASS Field Office reported that hail and high temperatures in the Northern Low Plains damaged cotton in some areas. Cotton continued to emerge in the Southern Low Plains. Irrigation on cotton was in full swing in areas of Southeast Texas, while cotton in South Texas and South Central Texas was setting bolls. Net upland sales totaled 13,000 running bales (RB) for 2016-2017–a marketing-year low—and were down 93 percent from the previous week and from the prior four-week average. Increases were reported primarily for Mexico, Turkey and Vietnam. Exports totaled 195,300 RB and were down 35 percent from the previous week and 25 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Mexico.
Wheat prices were lower at the close of last week with cash prices losing 41 cents to close at $4.48 per bushel and July futures losing 42 cents to end at $4.99 per bushel. The USDA NASS Field Office reported that winter wheat harvest is nearing completion throughout the state. Field work in areas of the Blacklands and Northeast Texas was slowed due to heavy rainfall received this week. Net sales totaled 357,700 MT and increases were reported primarily for Japan, the Philippines and Malaysia. Exports totaled 475,300 MT and were reported to Egypt, Mexico and Algeria.
Corn prices were lower at the close of last week with cash prices losing 25 cents to close at $3.3.71 per bushel and July Corn futures losing 27 cents to close at $3.65 per bushel. The USDA NASS Field Office reported that corn was drying down in areas of the Blacklands, South Central, and Southeast Texas, while producers began harvesting in the Upper Coast and South Texas. Harvest progressed well in the Lower Valley. Net sales totaled 161,000 MT and were up 15 percent from the previous week, but down 59 percent from the prior four-week average. Increases were reported for Japan, Spain and Mexico. Exports totaled 880,500 MT and were down 21 percent from the previous week and 19 percent from the prior four-week average. The primary destinations were Mexico, Taiwan and Spain.
Grain Sorghum cash prices were lower at the close of last with cash prices losing 43 cents to end at $5.57 per cwt. The USDA NASS Field Office reported that the sorghum harvest was in full swing in areas of the Coastal Bend, Upper Coast, South Texas, and the Lower Valley. Net sales totaled 59,600 MT and increases were reported for China and Mexico. Exports totaled 103,700 MT and were up noticeably from the previous week and 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 7 cents to end at $15.62 per cwt.
 
This week’s U.S. Drought Monitor for Texas showed an improvement in drought conditions for the state, with 23.88 percent of Texas still in some stage of drought intensity, down 2.61 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought, down 0.01 percentage points from three months ago. On the national level, drought conditions worsened slightly, with 23.10 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.