TDA Market Recap, March 14, 2017

For the week ending March 10, 2017, Texas feeder cattle auctions reported prices steady to $10 higher with instances of steady to $2 lower. Texas Weekly Direct reported steady prices. Wholesale beef values were higher, with Choice grade gaining $10.23 to close at $219.83 per hundredweight (cwt) and Select grade gaining $7.03 to close at $210.99 per cwt.
For the time period of Feb. 27- March 5, the USDA NASS Field Office reported that most producers reported their cattle in good to fair condition. Some producers provided supplemental protein to cattle. Pasture conditions were rated mostly good to fair across the state.
For the time period of Febr. 24 – March 2, exporters reported net sales of 16,900 metric tons (MT), for delivery in the 2016-2017 marketing year, and were up 10 percent from the previous week and 23 percent from the prior four-week average. Increases were reported primarily for Japan, Hong Kong and Mexico. Exports totaled 13,900 MT and were up 7 percent from the previous week and 2 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were mixed at the end of last week, with cash prices gaining 0.25 cents to close at 75.50 cents per pound and May futures losing 1.10 cents to close at 77.29 cents per pound. The USDA NASS Field Office reported that cotton producers in the Northern High Plains were planning on waiting until May to start planting. Cotton planting continued in the Lower Valley. Net upland sales totaled 248,900 round bales (RB) and were down 48 percent from the previous week and 22 percent from the prior four-week average. Increases were reported for Indonesia, China and Turkey. Exports totaled 529,000 RB–a marketing-year high—and were up 66 percent from the previous week and 45 percent from the prior four-week average. The primary destinations were China, Vietnam and Turkey.
Wheat prices were lower at the end of last week, with cash and March futures both losing 19 cents to close at $3.65 per bushel and $4.45 per bushel, respectively. The USDA NASS Field Office reported that winter wheat was rated mostly fair to good. Wheat continued to progress across most of the state, but was in need of moisture in some areas of the state. Some wheat producers in dry areas of South Texas used irrigation during the past week. Net sales totaled 391,600 MT and were up 21 percent from the previous week, but down 14 percent from the prior four-week average. Increases were reported primarily for Japan, Bangladesh and Yemen. Exports totaled 450,500 MT and were down 12 percent from the previous week and 14 percent and from the prior four-week average. The destinations were primarily Mexico, China and Bangladesh.
Corn prices were lower at the end of last week with cash prices losing 14 cents to close at $3.58 per bushel and March futures losing 15 cents to close at $3.58 per bushel. The USDA NASS Field Office reported that corn was being planted across areas of the southern part of the state. Corn was beginning to germinate in the Lower Valley. Producers in the Blacklands were beginning to plant sorghum while corn planting continued as well. Net sales totaled 741,100 MT and were up 7 percent from the previous week, but down 7 percent from the prior four-week average. Increases were reported primarily for Japan, South Korea and Mexico. Exports totaled 1,453,700 MT and were down 3 percent from the previous week, but up 15 percent from the prior four-week average. The primary destinations were Japan, Mexico and South Korea.
Grain Sorghum cash prices were lower at the end of last week, losing 27 cents to close at $5.38 per cwt. The USDA NASS Field Office reported that corn and sorghum were beginning to germinate in the Lower Valley. Producers in the Blacklands were beginning to plant sorghum. Net sales totaled 110,100 MT and were up noticeably from the previous week and up 79 percent from the prior four-week average. Increases were reported for Mexico, Japan and China. Exports totaled 52,700 MT and were down 49 percent from the previous week and 57 percent from the prior four-week average. The primary destinations were China, Mexico and Nigeria.
Milk prices were lower at the end of last week, with April Class III milk futures losing 15 cents to close at $15.74 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 29.08 percent of Texas still in some stage of drought intensity, up 4.58 percentage points from last week. Additionally, 0.93 percent of the state remains in severe, extreme, or exceptional drought, down 0.08 percentage points from three months ago. On the national level, drought conditions improved slightly, with 32.78 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.94 percentage points from last week.
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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.