TDA Market Recap, July 31, 2017

For the week ending July 28, 2017, Texas feeder cattle auctions reported mixed prices with instances of steady to $5 higher and steady to $7 lower. Texas Weekly Direct reported prices steady to $4 lower. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $1.24 to end at $206.22 per hundredweight (cwt) and Select Grade losing $1.07 to end at $196.82 per cwt.
For the time period of July 17-23 the USDA NASS Field Office reported that livestock was in good to fair condition throughout the state. Range and pasture conditions remained fair to good across the state.
For the time period of July 14-20 exporters reported net sales of 13,900 metric tons (MT) for delivery in 2017, which was up 13 percent from the previous week and five percent from the prior four-week average. Increases were reported for South Korea, Egypt and Mexico. Exports totaled 15,500 MT–a marketing-year high—and were up five percent from the previous week and 10 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the close of last week with cash prices gaining 0.75 cents to end at 67.50 cents per pound and October futures gaining 1.22 cents to end at 70.22 per bushel. The USDA NASS Field Office reported that high winds carrying dirt and sand, along with multiple hail events have caused significant cotton crop losses in areas of the Southern High Plains and the Northern Low Plains. Cotton fleahoppers were becoming a concern for some producers in the Northern Low Plains. Net upland sales totaled 28,300 running bales (RB) and were up four percent from the previous week, but down 77 percent from the prior four-week average. Increases were reported primarily for Pakistan, Thailand and Bangladesh. Exports totaled 326,800 RB and were up 17 percent from the previous week and 27 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and China.
Wheat prices were lower at the close of last week with cash prices losing a penny to end at $4.18 per bushel and September futures losing seven cents to end at $4.81 per bushel. The USDA NASS Field Office reported that land was being prepared in some areas of South Texas for winter wheat. Net sales totaled 498,000 MT and were down 26 percent from the previous week, but up five percent from the prior four-week average. Increases were reported primarily for Taiwan, South Korea and Chile. Exports totaled 476,600 MT and were down 13 percent from the previous week and 18 percent from the prior four-week average. The primary destinations were Japan, Mexico and Chile.
Corn prices were lower at the close of last week with cash and September futures both losing three cents and both closing at $3.74 per bushel. The USDA NASS Field Office reported that rain and high humidity delayed corn harvest in areas of the Blacklands as producers waited for grain to dry down. Net sales totaled 92,000 MT–a marketing-year low—and were down 80 percent from the previous week and 66 percent from the prior four-week average. Increases were primarily for Japan, Mexico and Colombia. Exports totaled 894,300 MT and were down 14 percent from the previous week and 12 percent from the prior four-week average. The primary destinations were Japan, Mexico and Taiwan.
Grain Sorghum cash prices were lower at the close of last week, losing four cents to end at $5.60 per cwt. The USDA NASS Field Office reported that sorghum harvest continued in the Blacklands, the Coastal Bend, the Upper Coast, and South East Texas, while nearing completion in southern areas of the state.
Milk prices were higher at the close of last week, with August Class III milk futures gaining 55 cents to end at $16.56 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight improvement in drought conditions for the state, with 24.96 percent of Texas still in some stage of drought intensity, down 0.62 percentage points from last week. Additionally, 1.26 percent of the state remains in severe, extreme, or exceptional drought, up 1.26 percentage points from three months ago. On the National level, drought conditions worsened, with 32.69 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 3.36 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.