TDA Market Recap, June 20, 2016

Source: Texas Department of Agriculture
For the week ending June 17, 2016, Texas feeder cattle auctions reported prices steady to $10 lower. Texas Weekly Direct reported prices steady to $5 lower. Wholesale beef values were lower, with Choice grade losing $5.73 to close at $221.83 per hundredweight (cwt) and Select grade losing $2.38 to close at $199.61 per cwt. 
For the time period of June 3-9 exporters reported net sales of 15,100 metric tons (MT) for 2016, which were up 20 percent from the previous week and 16 percent from the prior four-week average. Increases were reported for South Korea, Japan and Mexico. Exports totaled 13,300 MT, which were up eight percent from the previous week and two percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the end of last week, with cash prices gaining 0.75 cents to close at 62.12 cents per pound and July futures prices gaining 0.78 cents to close at 64.57 cents per pound. For the time period of June 6-12 the USDA NASS Field Office reported that row crops across the state continued to progress as planting resumed in many areas. A number of cotton fields were being replanted due to previous hail damage. Net upland sales totaled 64,100 round bales (RB) for 2015/2016, which were down 42 percent from the previous week and 54 percent from the prior four-week average. Increases were reported for Vietnam, Pakistan and Indonesia. Exports totaled 140,800 RB, which were down 31 percent from the previous week and 38 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Mexico.
Wheat prices were mixed at the end of last week, with cash prices losing 8 cents to close at $3.78 per bushel and July wheat futures steady remaining at $4.61 per bushel. The USDA NASS Field Office reported wheat and oat harvest was active across most of the state last week. Late harvesting continued where conditions allowed producers to return to the fields. Haying and silage harvest of small grains resumed in many areas due to dry weather and warmer temperatures. Earlier freeze damage and rust issues have affected some winter wheat fields in the Northern Low Plains, the Cross Timbers and the Upper Coast. Net sales totaled 762,900 MT for delivery in marketing year 2016/2017. The primary destinations were Mexico, South Korea and Japan. Exports totaled 351,800 MT and were reported to Japan, the Philippines and Mexico. 
Corn prices were higher at the end of last week with cash prices gaining 12 cents to close at $3.78 per bushel and July corn futures gaining 8 cents to close at $4.38 per bushel. The USDA NASS Field Office reported Corn was in good condition in areas of the Blacklands, South Central and South Texas, while corn in Northeast Texas displayed signs of stress due to standing water. Sorghum in areas of the Southern High Plains experienced fall armyworm infestation and preparation for harvest began in the Lower Valley. Corn net sales totaled 909,700 MT for 2015/2016, which were down 39 percent from the previous week and 36 percent from the prior four-week average. Increases were reported for Japan, South Korea and Colombia. Exports totaled 1,507,900 MT–a marketing-year high—which were up 27 percent from the previous week and 42 percent from the prior four-week average. The primary destinations were Japan, Mexico and South Korea. Grain sorghum cash prices were higher at the end of last week, with cash prices gaining 25 cents to close at $6.67 per cwt.
Milk prices were lower at the close of last week, with June Class III milk futures losing 10 cents to close at $13.25 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight improvement in drought conditions for the state, with only 1.38 percent of Texas still in some stage of drought intensity, down 0.31 percentage points from last week. On the national level, drought conditions improved, with 34.83 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 4.28 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.