TDA Market Recap, March 21, 2016

Source: Texas Department of Agriculture
For the week ending March 18, 2016, Texas feeder cattle auctions reported prices steady to $12 higher. Texas Weekly Direct reported prices $3 to $5 higher. Wholesale Beef values were higher, with Choice Grade gaining $4.34o close at $231.81 per hundredweight (cwt) and Select Grade gaining $4.84 to close at $222.33 per cwt. For the time period of March 7-13, the USDA NASS Field Office reported that livestock conditions were favorable throughout the state. Range and pasture continued to progress due to recent rainfall and warm season grasses are greening rapidly. Some producers in Northeast Texas experienced flooding and could not reach their pastures.
For the time period of March 4-10, exporters reported that net sales totaled 14,400 metric tons (MT) for 2016, which were up 82 percent from the previous week and 51 percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 11,600 MT, which were up one percent from the previous week and six percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were lower at the end of last week, with cash prices losing 0.25 cents to close at 54.37 cents per pound and March futures prices losing 1.13 cents to close at 57.16 cents per pound. The USDA NASS Field Office reported that cotton planting preparations continued in the Northern Low Plains. Net upland sales totaled 224,900 round bales (RB) for 2015-2016, which were up 22 percent from the previous week and 16 percent from the prior four-week average. Increases were reported for Vietnam, Turkey and Bangladesh. Exports totaled 175,800 RB, which were down 30 percent from the previous week and 10 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and China.
Wheat prices were lower at the end of last week, with cash prices losing $0.19 to close at $3.95 per bushel and March futures prices losing $0.07 to close at $4.70 per bushel. The USDA NASS Field Office reported that Winter Wheat has progressed well throughout the state. In areas of the Low Plains and South Texas, some producers were treating wheat for rust due to high humidity. Net sales totaled 212,900 MT for delivery in the 2015-2016 marketing year, which were down 36 percent from the previous week and 35 percent from the prior four-week average. Increases were reported for China, the Philippines and Indonesia. Exports totaled 416,200 MT, which were unchanged from the previous week but up 21 percent from the prior four-week average. The primary destinations were the Philippines, Nigeria and Thailand.
Corn prices were mixed at the end of last week, with cash prices losing $0.02 to close at $3.69 and March futures remaining at $3.67 per bushel. The USDA NASS Field Office reported that in areas of the Cross Timbers, Southeast Texas and Upper Coast producers made good progress planting corn ahead of the rains. Corn planting in areas of Blacklands and sorghum planting in Upper Coast were interrupted due to rainfall. Net sales totaled 1,227,000 MT for 2015-2016, which were up five percent from the previous week and 17 percent from the prior four-week average. Increases were reported for Japan, Mexico and the Dominican Republic. Exports totaled 873,900 MT, which were down 17 percent from the previous week, but up four percent from the prior four-week average. The primary destinations were Mexico, Japan and Colombia. Grain sorghum cash prices were down, losing $0.02 to close at $5.30 per cwt.
Milk prices were higher at the close of last week, with Class III milk futures gaining $0.04 to close at $13.83 per cwt.
This week’s U.S. Drought Monitor for Texas showed a vast improvement in drought conditions for the state, with only 11.42 percent of Texas still in some stage of drought intensity — this is down 19.26 percentage points from last week. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved slightly, with 33.50 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 1.91 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.