TDA Market Recap, July 21, 2014

Source: Texas Department of Agriculture
For the week ending July 19, 2014, Texas auctions quoted feeder cattle prices mostly steady to $6 lower per hundredweight (cwt), with a few as much as $12 lower and some steady to $6 higher. Texas direct feeder cattle sales were weak to $8 lower. Fed cattle cash prices were less than 50 cents lower per cwt. Wholesale beef values were $2 to $3 lower. Prices dipped lower throughout the cattle sector, but remain at near record high levels due to reduced cattle supplies and continued strong demand. Beef export sales for the week were down 50 percent from the previous week and down 37 percent from the prior four-week average. Export shipments were down 27 percent from a week earlier and 24 percent less than the average.
Cotton prices were modestly higher following a slight decline in crop condition, strong new-crop export sales and slower than normal crop development. Nationally, 53 percent of the crop was rated in good to excellent condition, down two points from past week, but still much better than at this time last year. In Texas, the crop was rated in mostly fair to good condition with an overall condition index of 64 points, up 12 points from last year. Crop development is slightly behind the normal pace. Cotton export sales for the current marketing year were down 69 percent from the previous week and 68 percent from the prior four-week average. Sales of new-crop cotton for the next marketing year were up 69 percent from the previous week and more than three times the average. Exports were down 40 percent from the previous week and 41 percent from the prior four-week average.
Wheat prices were lower as ample world supplies and weak demand continue to pressure the market. Concerns that political tensions could reduce exports from Ukraine were more than offset by reports of higher production in India and potentially-lower imports by Egypt. The winter wheat harvest progressed to 69 percent complete, up slightly from both last year and the average. In Texas, 99 percent of the winter wheat acreage is harvested, ahead of the normal 97 percent, with the remaining acreage in mostly poor to very poor condition. Wheat export sales for the week were down five percent from the previous week and 22 percent lower than the prior four-week average. Exports were up six percent from the previous week, but down nine percent from the average.
Corn and grain sorghum prices were lower as conditions remain favorable for large production this year. Nationally, crop development is ahead of both last year and the average, with 76 percent of the crop rated in good to excellent condition. That is up one point from last week and well above the 66 percent at this time a year ago. In Texas, the corn crop is rated in mostly good to fair condition with an overall rating index of 82 points, compared to 73 points last year. Grain sorghum is 15 percent harvested. Old-crop corn export sales were up 58 percent from a week earlier and more the double the prior four-week average. Sales of new-crop corn were up 30 percent from the previous week and up 70 percent from the average. Export shipments were down 25 percent from the previous week and 16 percent below the average.
All regions of the state received rainfall last week, with the totals of two inches or more common in many areas. Last week’s U.S. Drought Monitor, which was issued before the rain, showed very little change in overall conditions in Texas, with 87 percent of the state rated in some degree of drought or abnormal dryness, down less than one percentage point from a week ago. The percentages in each drought category also shifted slightly, and the drought-free areas in East and Southwest Texas remained largely unchanged. Nationally, the total area experiencing abnormal dryness or some degree of drought held steady at 45 percent of the contiguous states
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

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.