TDA Market Recap, July 23, 2012

Source: Texas Department of Agriculture
For the week ending July 21, feeder cattle prices at Texas auctions were mostly $3 to $15 lower per hundredweight (cwt) early in the week and steady to $7 lower later. Texas feeder cattle sales directly to stocker operations and feedlots were $2 to $4 lower. At the Oklahoma City National Stockyards, feeder cattle were $6 to $10 lower. Higher grain prices, lower fed cattle, hot temperatures and poor pasture conditions all contributed to the decline. The fed cattle cash trade was $1.65 lower per cwt following a drop in wholesale beef prices.
Cotton prices ended the week modestly higher amid concerns about hot, dry weather in West Texas and unfavorable growing conditions in India and Pakistan. The expanding drought and unusually hot weather in the U.S. Corn Belt continued to drive corn, grain sorghum and wheat higher.
As for futures markets, fed cattle, cotton, wheat, corn, cotton and lumber were higher, but feeder cattle were lower.
Much of the state recorded rainfall during the week ranging from a few hundredths of an inch in many areas to some locally heavy totals of an inch or more.
The weekly USDA NASS crop progress and condition report showed crops in mostly fair to good condition across the state. The overall condition index for cotton was 62 points, up from 61 a week ago, with 87 percent of the acreage squaring and 35 percent setting bolls, both ahead of normal for this date. The corn condition index was 73, down 2 points from last week, with 88 percent of the crop tasseled and 50 percent mature, both ahead of average. Grain sorghum was 78 percent headed and 44 percent of the crop has been harvested, both ahead normal. The condition index was 69 points compared to 70 a week ago. The condition index for peanuts improved to 75 points, up 4 points from last week, with 67 percent of the acreage pegging. Rice was 70 percent headed with a condition index of 81, down 3 points from a week ago.
Pastures and hay field conditions varied considerably across the state depending on rainfall. Statewide, 22 percent of the pasture acreage was rated in good to excellent condition; 40 percent was rated poor to very poor; and 38 percent 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 TexasAgriculture.gov.