TDA Market Recap, June 23, 2014

Source: Texas Department of Agriculture
For the week ending June 21, 2014, Texas auctions quoted feeder cattle prices steady to $12 higher per hundredweight (cwt), with a few as much as $20 to $30 higher on some classes. Texas direct feeder cattle prices were mostly $1 to $4 higher, with some $8 higher. Strong demand and limited supplies of feeder cattle continue to support the market. Fed cattle cash prices were almost $3 higher per cwt. Wholesale beef values were $9 to $10 higher per cwt. Beef export sales for the week ending June 12 totaled 16,100 metric tons (MT), more than double the previous week and 33 percent higher than the prior four-week average. Export shipments totaling 14,400 MT were near unchanged from the previous week and up one percent from the average.
Cotton prices were lower as ongoing rains on the Texas Plains boosted prospects for this year’s crop. Forecasts of smaller Chinese imports and larger carryover supplies also pressured the market. However, the decline was limited by tight old-crop supplies of high-quality cotton, as end users were reportedly willing to pay more now for higher quality cotton rather than risk having to pay more later for lesser-quality cotton. Cotton export sales for the 2013-14 marketing year totaled 153,100 bales, nearly four times higher than the previous week and up four percent from the prior four-week average. New-crop sales of 103,300 bales were up 38 percent from last week, but down 21 percent from the average. Exports totaled 119,800 bales, which was down 35 percent from a week earlier, 37 percent below the average and smaller than the weekly total needed to meet USDA projections for the marketing year.
Wheat prices were higher due to harvest delays on the U.S. Southern Plains, reports of lower than expected yields and concerns about the quality of this year’s crop. However, price gains were limited by ongoing concerns about large world supplies, weak international demand and increasing harvest-time supplies. Export data were within the range of pre-report expectations. Wheat export sales for the week were 372,600 MT, down 35 percent from the previous week. Shipments of 523,800 MT were up nine percent from a week earlier and well-above the level needed to meet USDA marketing year projections.
Corn and grain sorghum prices were higher, mostly due to concerns about excessive rains and storm damage in the Corn Belt. River flooding that has slowed barge traffic also may have been a factor. On the other hand, overall crop conditions still favor a large corn crop this year and export data was disappointing. Corn old-crop export sales totaled 109,000 MT, down 73 percent from the previous week and 79 percent below the prior four-week average. New-crop sales of 78,900 MT were down 25 percent from a week earlier, but 13 percent higher than the average. Exports totaling 1,123,000 MT were up five percent from the previous week, down one percent from the average and higher than the weekly average needed to meet projections for the marketing year.
Most of the state received rainfall during the week with totals of one inch or more common in parts of East, North and West Texas. Totals of five inches or more were reported southwest of Fort Worth and along the border from Laredo to Del Rio. Last week’s U.S. Drought Monitor showed a slight decline in overall conditions in Texas, with 90 percent of the state rated in some degree of drought or abnormal dryness, up from 89 percent a week ago. Areas in extreme drought declined, but areas in moderate drought expanded. Much of East Texas and a section of South Texas remain drought-free. Nationally, 45 percent of the contiguous states were reported as abnormally dry or in some degree of drought, down one percentage point from a week ago.
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.