TDA Market Recap, March 17, 2014

Source: Texas Department of Agriculture
For the week ending March 15, 2014, Texas feeder cattle auctions reported prices mostly steady to $5 higher per hundredweight (cwt), with a few locations as much as $10 higher, but some as much as $6 lower. Texas direct feeder cattle prices were steady to $4 higher. Fed cattle cash prices held steady at $148 per cwt. Wholesale beef values set new record highs last week, with Choice-grade cuts averaging $241.51 on Wednesday. Tight supplies and strong demand continued to support the entire cattle sector, but some fluctuations are also to be expected. Beef export sales of 17,700 metric tons (MT) were a marketing year high, up 60 percent from the previous week and 44 percent from the prior four-week average. Shipments also set a marketing year high at 13,200 MT, up 16 percent from a week ago and 13 percent from the average.
Cotton cash prices were higher due to concerns about the dry conditions on the Texas High Plains and tight domestic supplies. However, gains were limited by large world supplies and expectations for higher U.S. cotton plantings this spring. Cotton export data were mixed. Current week sales and shipments were lower than a week ago, but still higher than the weekly averages needed to meet USDA projections for the marketing year and both are also progressing ahead of last year’s pace. Upland cotton export sales totaled 60,000 bales, down 62 percent from a week ago and 36 percent from the prior four-week average. Shipments totaled 264,200 bales, down 27 percent from the previous week and 19 percent from the average.
Wheat prices for the week were higher amid ongoing concerns about dry conditions in U.S. winter wheat areas and the potential for higher U.S. exports due to the turmoil in Ukraine. However, that potential has yet to be realized, as last week’s wheat export sales of 476,900 MT were down 14 percent from a week ago and two percent from the prior four-week average. Export shipments of 455,700 MT were down 28 percent from the previous week and two percent from the average.
Corn and grain sorghum prices were higher due to lower projected corn ending stocks and the situation in Ukraine. Corn export sales totaled 683,000 MT, down 55 percent from the previous week and 37 percent from the prior four-week average. Shipments of 907,400 MT were down 20 percent from a week ago and two percent from the average.
Most of the state, except for the Big Bend region and much of the Panhandle, recorded precipitation last week. Totals of one-half inch or more were common in much of North, East and South Central Texas. Last week’s U.S. Drought Monitor showed another improvement in conditions in Texas, with the area of the state rated as abnormally dry or in drought down 6 percentage points to 85 percent. The drought-free areas in West, South and Southeast Texas expanded, but the area in Northeast Texas slipped into abnormal dryness. Overall, the areas rated in severe, extreme and exceptional drought increased, while abnormally dry and moderate drought areas declined. Nationally, 52 percent of the contiguous states were reported in some degree of abnormal dryness or drought, down 1 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.