TDA Market Recap, March 27, 2017

For the week ending March 24, 2017, Texas feeder cattle auctions reported prices steady to $8 higher. Texas Weekly Direct reported prices $1 to $7 higher. Wholesale beef values were uneven, with Choice grade losing $2.14 to end at $221.62 per hundredweight (cwt) and Select grade gaining $1.58 to end at $215.55 per cwt.
For the time period of March 13-19 the USDA NASS Field Office reported that cattle conditions were rated mostly good to fair. Supplemental feeding continued in the Plains and the Cross Timbers. Pasture and range conditions were rated mostly good to fair.
For the time period of March 10 to 16, exporters reported net sales totaling 14,600 metric tons (MT) for delivery in the 2016-2017 marketing year, which were down 9 percent from the previous week and 1 percent from the prior four-week average. Increases were reported primarily for Japan, Hong Kong and South Korea. Exports totaled 13,100 MT and were down 3 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 uneven at the end of last week, with cash prices losing 0.25 cents to end at 75.75 cents per pound and May futures gaining 0.14 cents to end at 77.47 cents per pound. The USDA NASS Field Office reported that cotton producers in the northern parts of the state continued field preparations for cotton and other row crops. Some of the cotton in the Coastal Bend emerged. Cotton planting continued in South Texas and the Lower Valley. Net upland sales totaled 328,200 running bales (RB) and were up 4 percent from the previous week, but down 7 percent from the prior four-week average. Increases were reported primarily for China, Vietnam and Turkey. Exports totaled 379,700 RB and were up 12 percent from the previous week, but down 1 percent from the prior four-week average. The primary destinations were Vietnam, China and Indonesia.
Wheat prices were lower at the end of last week, with cash prices and May futures both losing 17 cents to end at $3.38 per bushel and $4.28 per bushel, respectively. The USDA NASS Field Office reported that winter wheat was rated 74 percent fair to good. Wheat in the Northern and Southern High Plains continued to progress in the jointing stage. In some areas of the Blacklands, wheat reached the heading stage. The lack of moisture caused concerns for some of the wheat producers in the Plains. Net sales totaled 418,500 MT and were up 58 percent from the previous week and 17 percent from the prior four-week average. Increases were reported primarily for Japan, Algeria and Mexico. Exports totaled 648,700 MT and were up 5 percent from the previous week and 17 percent and from the prior four-week average. The destinations were primarily Japan, China and Mexico.
Corn prices were lower at the end of last week with cash prices losing 7 cents to end at $3.49 per bushel and May futures losing 8 cents to end at $3.56 per bushel. The USDA NASS Field Office reported that corn was being planted in the Blacklands, North East Texas, South Central, South Texas and the Upper Coast. Net sales totaled 1,347,000 MT and were up 11 percent from the previous week and 59 percent from the prior four-week average. Increases were primarily for South Korea, Japan and Mexico. Exports totaled 1,382,200 MT and were down 10 percent from the previous week and 3 percent from the prior four-week average. The primary destinations were Mexico, South Korea and Japan.
Grain Sorghum cash prices were lower at the end of last week, losing 13 cents to end at $5.24 per cwt. Net sales totaled 215,600 MT and were up noticeably from the previous week and from the prior four-week average. Increases were reported for unknown destinations, China and Japan. Exports totaled 12,400 MT and were down 90 percent from the previous week and 89 percent from the prior four-week average. The primary destination was Mexico.
Milk prices were higher at the end of last week, with April Class III milk futures losing 11 cents to close at $14.99 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 46.54 percent of Texas in some stage of drought intensity, up 11.66 percentage points from last week. On the national level, drought conditions worsened as well, with 36.22 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 4.36 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.