TDA Market Recap, June 16, 2014

Source: Texas Department of Agriculture
For the week ending June 14, 2014, Texas auctions quoted feeder cattle prices steady to as much as $12 higher per hundredweight (cwt). Texas direct feeder cattle prices were mostly $6 to $12 higher. Strong demand and limited supplies of feeder cattle continue to support the market. Feeder cattle futures on Friday closed at a new record high of $208 per cwt. Fed cattle cash prices were $1.50 to $2 higher per cwt. Wholesale beef values were higher. Beef exports for the week ending June 5 totaled 6,700 metric tons (MT), down 60 percent from the previous week and 51 percent lower than the prior four-week average. Export shipments of 14,400 MT were up 20 percent from the previous week and three percent from the average.
Cotton prices were modestly higher as relatively tight current supplies continued to support the market. Last week’s price declines also stimulated some buying interest. Export data was mostly bearish, though cotton shipments remained well above the level needed to meet USDA projections for the marketing year. Export sales of old-crop cotton totaled 40,800 bales, down 69 percent from the previous week and 72 percent lower than the prior four-week average. New-crop sales totaled 74,700 bales, down 58 percent from a week earlier and 35 percent from a year ago. Export shipments of 182,700 bales were up nine percent from the previous week, but down seven percent from the average.
Wheat prices were lower as large world supplies, weak international demand and increasing harvest-time supplies pressured the market. Net export sales for the new marketing year that began June 1 totaled 570,100 MT. A total of 1.6 million MT were carried over from the previous marketing year. Export shipments for the period ending on May 31 were 150,400 MT, resulting in accumulated exports for the marketing year totaling 30.1 million MT, up 14 percent from a year earlier.
Corn and grain sorghum prices were lower as growing conditions across most of the Corn Belt continue to favor a large crop this year. Old-crop corn sales totaling 409,700 MT were down 26 percent from the previous week and 17 percent below the four-week average. New-crop corn sales of 105,500 MT were five times higher than a week earlier and up 92 percent from the average. Export shipments of 1,070,500 MT were down eight percent from the previous week and five percent from the average.
Much of the state received rainfall during the week with totals of one inch or more common across East, Central and West Texas. Last week’s U.S. Drought Monitor showed a modest improvement in overall conditions in Texas, with 89 percent of the state rated in some degree of drought or abnormal dryness, down from 91 percent a week ago. The areas in the two worst categories, extreme and exceptional drought, dropped again this week to 23 percent, which is down from 27 percent last week. Nationally, the total area rated as abnormally dry or in some degree of drought declined by two points to 46 percent.
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.