TDA Market Recap, July 28, 2014

Source: Texas Department of Agriculture
For the week ending July 26, 2014, Texas auctions quoted feeder cattle prices mostly steady to as much as $10 higher per hundredweight (cwt), though a few lower prices also were noted early in the week. Texas direct feeder cattle sales were $3 to $7 higher. Fed cattle cash prices were $7 higher to a record of $162 per cwt. Wholesale beef values were $9 to $12 higher, also to new record highs. Prices rebounded across the cattle sector as markets refocused on the tight supplies and continued strong demand. Beef export sales for the week were up 20 percent from the previous week, but down 13 percent from the prior four-week average. Export shipments were up 29 percent from a week earlier and three percent higher than the average.
Cotton prices were lower following reports that India could produce a record-large cotton crop this year, as well as projections for slower world economic growth that could impact cotton demand. USDA reported that U.S. cotton is progressing ahead of the normal pace, with 52 percent of the crop rated in good to excellent condition, down one point from a week earlier. Texas crop development and conditions also are better than at this time last year. Weekly export data was mostly supportive, with strong new crop sales and adequate shipments. However, cotton exports sales for the old-crop 2013-14 marketing year were negative as cancellations outweighed purchases. New-crop sales were up eight percent from the previous week and more than double the average. Exports were down 12 percent from a week earlier and down 44 percent from the average, but higher than the weekly average needed to meet USDA projections for the marketing year.
Wheat prices were lower as ample world supplies and weak demand continue to pressure the market. Concerns about political tensions in Ukraine have faded, and a U.S. spring wheat tour projected record-high yields on the Northern Plains. USDA reported the U.S. winter wheat harvest is 75 percent complete, equal to the five-year average. Spring wheat is 84 percent headed, down a point from the average. In Texas, 100 percent of the wheat crop has been harvested, slightly ahead of normal. Wheat export sales were up 38 percent from the previous week and 12 percent above the prior four-week average. Shipments were up 32 percent from a week earlier and up 27 percent from the average.
Corn and grain sorghum prices were lower as conditions remain favorable for large production this year, though the price declines did generate some buying interest late in the week. Seventy-six percent of the U.S. corn crop was rated in good to excellent condition, unchanged from a week earlier and the best rating for this week since 1993. The Texas corn crop is in mostly good to fair condition. Texas grain sorghum is 88 percent headed and 23 percent harvested. Old crop corn export sales were lower, but new crop sales surged and shipments rebounded from the previous week. Corn old-crop export sales for the week were down 49 percent from the previous week and down 21 percent from the prior four-week average. New-crop corn sales were more than double the previous week and nearly three times the average. Shipments were up nine percent from a week earlier, but down four percent from the average.
Parts of the Panhandle, East Texas and scattered location elsewhere reported one half inch or more of rain last week, but much of the state recorded little or no rainfall. Last week’s U.S. Drought Monitor showed an improvement in overall conditions in Texas, with 83 percent of the state rated in some degree of drought or abnormal dryness, down four percentage points from a week ago. The areas in moderate and extreme drought showed the biggest improvement. The drought-free areas in East and Southwest Texas remained largely unchanged, and a new “normal” zone popped-up in the Trans-Pecos. Weekly comparison maps are available here.Select Texas in the drop-down menu on the left side of the page. Nationally, the total area experiencing abnormal dryness or some degree of drought increased one point to 46 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.