TDA Market Recap, June 3 2014

Source: Texas Department of Agriculture
For the week ending May 31, 2014, feeder cattle prices reported by Texas auctions were mostly steady early in the week and then strengthened to end the period mostly $2 to $5 higher per hundredweight (cwt). Many locations noted light receipts as rain and muddy pastures limited cattle movement. Texas direct feeder cattle prices were steady. Limited supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were 50 cents lower per cwt. Wholesale beef values were higher. Beef export sales for the week totaled 12,700 metric tons (MT), up five percent from the previous week and up four percent from the prior four-week average. Export shipments hit a new high for the marketing year at 16,400 MT, up 17 percent from the previous week and 23 percent higher than the average.
Cotton prices were unchanged from a week earlier. Markets remained under pressure from the beneficial rains that fell over most of the state’s major cotton-producing areas. The rain significantly boosted crop prospects, but timely moisture will still be needed throughout the growing season. Prices declines were offset by renewed buying interest, and export data was mixed. Cotton export sales totaled 61,000 bales of old crop, down 83 percent from the previous week and 50 percent from the average. Sales of new-crop cotton for the next marketing year were 114,300 bales, down 28 percent from a week earlier, but up 24 percent from the average. Shipments of 216,600 bales were up 14 percent from the previous week, five percent higher than the average and higher than the weekly total needed to meet USDA export projections for the marketing year.
Wheat prices were lower following the rain on the U.S. Southern Plains. These rains will help some of the crop, but likely came too late to benefit much of the acreage in Texas. Harvest is underway in some areas, adding to already-burdensome world supplies. Export data was mixed. Weekly inspections came in lower than expected. Wheat exports sales for the 2013-14 marketing year were a negative 52,400 MT as cancellations outweighed new sales. Sales for the next marketing year of 531,500 MT were more than double both the previous week and the prior four-week average. Export shipments totaled 529,100 MT, up four percent from the previous week, but 10 percent below the average.
Corn and grain sorghum prices also were lower due to improving prospects for a large corn crop this year. There are some lingering concerns about planting delays in the eastern and northern Corn Belt, but overall planting progress caught up with the average pace. Growing conditions also have been favorable. Corn old-crop export sales totaled 621,300 MT, up 22 percent from the previous week and up 27 percent from the prior four-week average. New crop sales of 90,900 MT were up 46 percent from a week earlier and up 49 percent from the average. Export shipments totaling 1,210,200 MT were up four percent from the previous week and one percent higher than the average.
Almost the entire state received rainfall, mostly early in the week. The heaviest accumulations were in the southeastern quarter of the state, with totals of two or more inches common, and eight or more inches reported in some locations. Last week’s U.S. Drought Monitor showed another modest improvement following the previous weekend’s rain. Eighty-nine percent of the state remains abnormally dry or in some degree of drought, down one percentage point from a week earlier. The most notable change was a 14 percentage point drop in the area rated in the worst category, exceptional drought. However, most of the state west of I-45, east of the Pecos River and north of Corpus Christi remains in some degree of drought. Nationally, conditions remained unchanged with 48 percent the contiguous states reported in some degree of abnormal dryness or drought.
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.