TDA Market Recap, June 26, 2017

For the week ending June 23, 2017, Texas feeder cattle auctions reported prices $1 to $10 lower. Texas Weekly Direct reported prices $5 to $9 lower. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $9.71 to end at $239.75 per hundredweight (cwt) and Select Grade losing $4.64 to end at $216.72 per cwt.
For the time period of June 12-18 the USDA NASS Field Office reported that livestock were mostly in good condition across the state. Pasture and range condition were rated mostly fair to good. However, conditions were declining fast in areas of the Lower Valley, the Low Plains and Central and South Texas, raising the threat of wildfires.
For the time period of June 9-15 exporters reported net sales of 16,600 metric tons (MT), which were up 96 percent from the previous week and 60 percent from the prior four-week average. Increases were reported primarily for South Korea, Japan and Hong Kong. Exports totaled 13,700 MT and were down 5 percent from the previous week, but unchanged from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were uneven at the close of last week with cash prices losing 0.50 cents to end at 68.25 cents per pound and July futures gaining 1.26 cents to end at 72.65 per bushel. The USDA NASS Field Office reported that hail and slow emergence of cotton were seen in some areas of the Southern High Plains. Cotton in South Texas had begun setting bolls. Spider mites were seen in cotton fields of the Blacklands. Net upland sales totaled 167,500 running bales (RB) and were up noticeably from the previous week and from the prior four-week average. Increases were reported for Vietnam, India and Indonesia. Exports totaled 259,400 RB and were up 11 percent from the previous week, but down 17 percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Indonesia.
Wheat prices were uneven at the close of last week with cash prices remaining at $4.14 per bushel and July futures losing 9 cents to end at $4.64 per bushel. The USDA NASS Field Office reported that wheat harvest continued in areas of the Plains, the Blacklands and North East Texas. Small grain harvest was nearing completion in most of the state, while areas of the Northern High Plains progressed quickly. Net sales totaled 542,900 MT and were reported primarily for Japan, Taiwan and the Philippines. Exports totaled 717,800 MT and were reported primarily to South Korea, the Philippines and Algeria.
Corn prices were lower at the close of last week with cash and July futures both losing 17 cents and both ending at $3.58 per bushel. The USDA NASS Field Office reported that corn producers in the Southern High Plains were concerned with the adverse effect high temperatures could have on pollination. Some corn producers sprayed for rust in the Upper Coast. In South Texas, corn was maturing. Net sales totaled 528,800 MT and were down 12 percent from the previous week, but up 16 percent from the prior four-week average. Increases were reported for Japan, Mexico and Israel. Exports totaled 1,211,500 MT and were up 22 percent from the previous week and 6 percent from the prior four-week average. The primary destinations were Mexico, Japan and South Korea.
Grain Sorghum prices were lower at the close of last with cash prices losing 30 cents to end at $5.36 per cwt. The USDA NASS Field Office reported that in South Texas, sorghum was turning color. Producers in South Texas and the Lower Valley were expecting to start sorghum harvest in the next two weeks. Sorghum was being planted behind wheat in the Northern High Plains. Heat stress on sorghum was reported in the Blacklands, the Trans-Pecos and the Southern High Plains. Net sales totaled 62,100 MT and were up 2 percent from the previous week and up noticeably from the prior four-week average. Increases were for China and unknown destinations. Exports totaled 63,800 MT and were up noticeably from the previous week, but down 2 percent from the prior four-week average. The destinations were China, Mexico and South Korea.
Milk prices were lower at the close of last week, with July Class III milk futures losing 27 cents to end at $16.05 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 27.35 percent of Texas still in some stage of drought intensity, up 5.58 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought, down 0.93 percentage points from three months ago. On the national level, drought conditions improved slightly, with 19.50 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.51 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.