TDA Market Recap, June 5, 2017

For the week ending June 2, 2017, Texas feeder cattle auctions reported uneven prices with instances of steady to $7 higher, and steady to $5 lower. Texas Weekly Direct reported prices $2 to $4 higher. Wholesale Beef values were lower at the end of the week, with Choice Grade losing a penny to end at $245.24 per hundredweight (cwt) and Select Grade losing $1.39 to end at $218.06 per cwt.
For the time period of May 22-28 the USDA NASS Field Office reported that cattle were in mostly good condition across the state. Pastures responded well to recent rainfall and conditions were mostly fair to good statewide.
For the time period of May 19-25 exporters reported net sales of 12,100 metric tons (MT), which were up 69 percent from the previous week and 15 percent from the prior four-week average. Increases were reported primarily for Japan, Mexico and Hong Kong. Exports totaled 14,800 MT and were up 9 percent from the previous week and 11 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were lower at the close of last week, with cash prices losing 0.50 cents to end at 75.00 cents per pound and July futures losing 0.57 cents to end at 76.69 cents per pound. The USDA NASS Field Office reported that winds and hail affected corn, sorghum and cotton in South Central Texas as well as isolated areas of the Upper Coast. Producers commented that cotton in the High Plains has been slow to emerge due to cooler temperatures. Net upland sales totaled 110,900 running bales (RB) and were up noticeably from the previous week, but down 1 percent from the prior four-week average. Increases were reported primarily for Vietnam, China and Turkey. Exports totaled 370,400 RB and were up 11 percent from the previous week, but down 1 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and Bangladesh.
Wheat prices were steady at the close of last week with cash prices ending the week at $3.64 per bushel and July futures ending at $4.33 per bushel. The USDA NASS Field Office reported that hail during the previous week damaged wheat fields in the Cross Timbers and the Northern Low Plains, while storms and high winds damaged fields in the Blacklands. Harvest kicked off in a few areas of the High Plains, but was slowed down by wet conditions in other areas of the state. Farmers in the Blacklands were concerned with difficulties, caused by the wet weather during harvest. Wheat and oats condition was rated as mostly fair to good statewide.
Corn prices were higher at the close of last week with cash prices gaining 7 cents to close at $3.73 per bushel and July futures gaining 6 cents to close at $3.73 per bushel, as well. The USDA NASS Field Office reported that winds and hail affected corn, sorghum and cotton in South Central Texas as well as isolated areas of the Upper Coast. Corn condition was rated as mostly fair to good statewide. Net sales totaled 412,100 MT and were down 10 percent from the previous week and 26 percent from the prior four-week average. Increases were reported primarily for Japan, Mexico and Taiwan. Exports totaled 1,332,400 MT and were up 27 percent from the previous week and 17 percent from the prior four-week average. The primary destinations were Japan, Mexico and South Korea.
Grain Sorghum prices were higher at the close of last with cash prices gaining a dime to end at $5.50 per cwt. The USDA NASS Field Office reported that winds and hail affected corn, sorghum and cotton in South Central Texas as well as isolated areas of the Upper Coast. Net sales totaled 1,500 MT and resulted as increases for Mexico and Japan. Exports totaled 131,800 MT and were up noticeably from the previous week and 34 percent from the prior four-week average. The destinations were China, Mexico and Japan.
Milk prices were lower at the end of last week, with June Class III milk futures losing 4 cents to end the week at $16.52 per cwt.
This week’s U.S. Drought Monitor for Texas showed a worsening drought conditions for the state, with 34.50 percent of Texas still in some stage of drought intensity, up 12.20 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought, down 1.01 percentage points from three months ago. On the national level, drought conditions worsened as well, with 18.31 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 4.04 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.