TDA Market Recap, March 10, 2014

Source: Texas Department of Agriculture
For the week ending March 8, 2014, Texas feeder cattle auctions reported prices mostly steady to $3 higher per hundredweight (cwt), with a few locations as much as $10 higher. However, a few lower prices also were noted. Texas direct feeder cattle prices were $1 to $3 higher. Fed cattle cash prices declined $2 from the previous week’s new record-high to land at $148 per cwt. Wholesale beef values also were higher. Tight supplies and strong demand continued to support markets throughout the cattle sector. Beef export sales for the week were 11,100 metric tons (MT), down five percent from a week earlier and four percent from the prior four-week average. Japan and Hong Kong were the leading buyers. Export shipments were down three percent from both the previous week and the average.
Cotton cash prices were higher due to strong weekly export data and concerns about the dry conditions on the Texas Plains and in California. Stronger equity markets and the ongoing crisis in Ukraine contributed to the rise in prices. Cotton weekly export sales totaled 159,500 bales, which were much higher than expected. Sales were nearly six times higher than the previous week, which was a marketing year low, and up 60 percent from the prior four-week average. China, Turkey and Vietnam were the leading buyers. Export shipments hit a high for the marketing year at 363,800 bales, up 31 percent from a week earlier and up 12 percent from the average. The top destinations were China, Turkey and Vietnam.
Wheat prices for the week were higher in response to stronger export data, concerns about dry conditions in U.S. winter wheat areas and the increased potential for U.S. exports due to the turmoil in Ukraine. Wheat export sales for the week were 556,100 MT, up 52 percent from the previous week, 10 percent higher than the prior four-week average and very near pre-report expectations. The leading buyers were Mexico, Brazil and China. Export shipments for the week were 633,000 MT, up 16 percent from the week earlier and up 59 percent from the average. The top destinations were Brazil, the Philippines and Egypt.
Corn and grain sorghum prices were higher due to stronger than expected export data, spillover from higher soybean prices and the situation in Ukraine. Corn weekly export sales came in much higher than expected at 1.5 million MT, up 81 percent from the previous week and up 35 percent from the prior four-week average. The leading buyers were Mexico, Japan and Columbia. Export shipments totaled 1.1 million MT, up 33 percent from a week earlier and up 38 percent above the average. South Korea, Mexico and Japan were the top destinations.
Most of the state recorded precipitation last week; however, totals of one-half inch or more were limited to areas south and east of a line from Marshall to Temple to Laredo. Last week’s U.S. Drought Monitor showed a slight improvement in conditions in Texas, with the area of the state rated as abnormally dry or in drought down two percentage points to 91 percent. The areas in moderate and exceptional drought increased, while other categories declined. Drought-free areas remain in East, South and West Texas. Nationally, 53 percent of the contiguous states were reported in some degree of abnormal dryness or drought, down one 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.