TDA Market Recap, June 20, 2017

For the week ending June 16, 2017, Texas feeder cattle auctions reported prices steady to $8 lower, with instances of $2 to $5 higher. Texas Weekly Direct reported prices $2 to $8 lower. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $2.68 to end at $149.84 per hundredweight (cwt) and Select Grade losing $1.97 to end at $219.80 per cwt.
For the time period of June 5-11 the USDA NASS Field Office reported that livestock was mostly in good condition across the state. Flies were causing problems to cattle and horses in the Blacklands. Pastures responded well to recent rainfall and conditions were mostly fair to good statewide. However, in southern parts of the state, pasture and range conditions were declining due to hot dry weather.
For the time period of June 2-8 U.S. exporters reported net sales of 8,500 metric tons (MT) which were down 38 percent from the previous week and 16 percent from the prior four-week average. Increases were reported primarily for Mexico, Hong Kong and Japan. Exports totaled 14,500 MT and were up 17 percent from the previous week and 6 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were lower at the close of last week with cash prices losing 3.50 cents to close at 69.75 cents per pound and July futures losing 3.25 cents to close at 71.88 per bushel. The USDA NASS Field Office reported that cotton planting made good progress in the High Plains and the Edwards Plateau. Cotton in southern parts of the state was in the squaring stage. Net upland sales totaled 69,400 running bales (RB) and were down 16 percent from the previous week and from the prior four-week average. Increases were reported for India, Vietnam and China. Exports totaled 233,300 RB and were down 26 percent from the previous week and 34 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and India.
Wheat prices were higher at the close of last week with cash prices gaining 40 cents to end at $4.17 per bushel and July futures gaining 31 cents to end at $4.74 per bushel. The USDA NASS Field Office reported that wheat harvest continued in the Plains, the Blacklands and North East Texas. Areas of the Northern High Plains continued to wait for wheat to ripen and anticipated harvest starting in the coming week. Net sales totaled 373,400 MT and were primarily reported for Mexico, Nigeria and Taiwan. Exports totaled 624,400 MT and were reported primarily for Yemen, Nigeria and South Korea.
Corn prices were higher at the close of last week with cash and July futures both gaining 7 cents and both ending at $3.84 per bushel. Net sales totaled 600,700 MT and were up 72 percent from the previous week and 25 percent from the prior four-week average. Increases were reported for Mexico, Colombia and China. Exports totaled 992,300 MT and were down 18 percent from the previous week and 23 percent from the prior four-week average. The primary destinations were Mexico, Japan and Taiwan.
Grain Sorghum prices were higher at the close of last with cash prices gaining 24 cents to end at $5.82 per cwt. The USDA NASS Field Office reported that sorghum in South Texas was being sprayed in preparation for harvest. Head worms damaged sorghum fields in areas of the Coastal Bend. Net sales totaled 60,600 MT and were up noticeably from the previous week and from the prior four-week average. Increases were for China and Mexico. Exports totaled 1,400 MT and were down 98 percent from the previous week and from the prior four-week average. The primary destination was Mexico.
Milk prices were higher at the end of last week, with June Class III milk futures gaining 2 cents to end the week at $16.33 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 21.77 percent of Texas still in some stage of drought intensity, up 5.20 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought. On the national level, drought conditions worsened as well, with 20.01 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 3.05 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 our website, www.TexasAgriculture.gov.