TDA Market Recap, July 24, 2017

For the week ending July 21, 2017, Texas feeder cattle auctions reported prices steady to $4 higher. Texas Weekly Direct reported prices $2 to $4 higher. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $2.14 to end at $206.91 per hundredweight (cwt) and Select Grade losing $1.01 to end at $194.80 per cwt.
For the time period of July 10-16, the USDA NASS Field Office reported that livestock was in good condition throughout the state. Horn flies continued to be an issue in Northeast Texas. Supplemental feeding continued in the Lower Valley. Range and pasture conditions remained fair to good across the state. The lack of rain and hot weather in the Panhandle were causing a decline in the pastures conditions.
For the time period of July 7-13, exporters reported net sales totaling 12,400 metric tons (MT), which were down one percent from the previous week and 14 percent from the prior four-week average. Increases were reported primarily for Japan, Mexico and South Korea. Exports totaled 14,800 MT and were up 26 percent from the previous week and seven percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were uneven at the close of last week, with cash prices losing 0.25 cents to end at 67.00 cents per pound and October futures gaining 0.57 cents to end at 69.14 per bushel. The USDA NASS Field Office reported early cotton fields in the High Plains were blooming. Some cotton fields in the Plains were behind in terms of growth. Producers in the Blacklands took advantage of the weather to do field work. Cotton was being heavily irrigated in areas of Southeast Texas. Cotton was filling bolls and progressing toward maturity in the Lower Valley and South Texas. Net upland sales totaled 27,200 running bales (RB), which up noticeably from the previous week but down 83 percent from the prior four-week average. Increases were reported primarily for Vietnam, Turkey and China. Exports totaled 280,500 RB and were up 44 percent from the previous week and 11 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 three cents to close at $4.30 per bushel and September futures losing 11 cents to end at $4.96 per bushel. The USDA NASS Field Office reported that producers were plowing wheat residue in areas of the Northern High Plains. Net sales totaled 669,500 MT and were up 87 percent from the previous week and 52 percent from the prior four-week average. Increases were for the Philippines, South Korea and Mexico. Exports totaled 550,200 MT, which were up 16 percent from the previous week but down 11 percent from the prior four-week average. The primary destinations were Mexico, the Philippines and Japan.
Corn prices were uneven at the close of last week, with cash prices losing four cents to close at $3.79 per bushel and September corn futures gaining a nickel to close at $3.80 per bushel. The USDA NASS Field Office reported that corn was in the tassel stage in the Northern High Plains. Corn harvest was rapidly approaching in the Cross Timbers, Blacklands, South Central and South Texas. Net sales totaled 466,500 MT and were up noticeably from the previous week and 63 percent from the prior four-week average. Increases were reported for Japan, Mexico and Peru. Exports totaled 1,041,900 MT, which were up 18 percent from the previous week but down one percent from the prior four-week average. The primary destinations were Mexico, Japan and Peru.
Grain sorghum cash prices were lower at the close of last week, losing six cents to end at $5.70 per cwt. The USDA NASS Field Office reported that the sorghum harvest was underway in the Blacklands and continued in the Coastal Bend, Upper Coast, South Texas and the Lower Valley. Net sales totaled 66,000 MT and were reported for unknown destinations. Exports totaled 59,200 MT and were down 43 percent from the previous week and eight percent from the prior four-week average. The destinations were China and Mexico.
Milk prices were lower at the close of last week, with August Class III milk futures losing 57 cents to end at $16.10 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 25.58 percent of Texas still in some stage of drought intensity, up 1.70 percentage points from last week. On the national level, drought conditions worsened as well, with 29.33 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 6.23 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.