TDA Market Recap, March 6, 2017

For the week ending March 3, 2017, Texas feeder cattle auctions reported prices steady to $10 higher with instances of $1 to $2 lower. Texas Weekly Direct reported prices steady to $2 lower. Wholesale beef values were higher, with Choice grade gaining $6.59 to close at $208.07 per hundredweight (cwt) and Select grade gaining $6.97 to close at $204.05 per cwt.
For the time period of February 20 to 26, the USDA NASS Field Office reported that livestock were mostly in good condition. Some producers were still providing supplemental feed to cattle to reduce grazing pressure. Pasture conditions were mostly good to fair across the state. A few wildfires were spotted in the Northern High Plains.
For the time period of February 17 to 23 exporters reported net sales of 15,400 metric tons (MT) and were up 48 percent from the previous week and 4 percent from the prior four-week average. Increases were primarily reported for Hong Kong, South Korea and Japan. Exports totaled 13,100 MT and were down 2 percent from the previous week and 8 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the end of last week, with cash prices gaining 1.25 cents to close at 74.25 cents per pound and March futures gaining 2.31 cents to close at 77.28 cents per pound. The USDA NASS Field Office reported that preparation for cotton planting continued, although recent rainfall in North East Texas delayed field work. The Lower Valley began planting cotton. Net upland sales totaled 481,400 round bales (RB)–a marketing year-high–and were up 31 percent from the previous week and 72 percent from the prior four-week average. Increases were reported for Vietnam, Bangladesh and China. Exports totaled 319,200 RB and were down 6 percent from the previous week and 14 percent from the prior four-week average. The primary destinations were China, Vietnam and Turkey.
Wheat prices were higher at the end of last week, with cash prices gaining 33 cents to close at $3.81 per bushel and March futures gaining 18 cents to close at $4.62 per bushel. The USDA NASS Field Office reported that winter wheat was rated mostly fair to good. The warm weather and precipitation during the previous two weeks have improved the wheat development, as it continues to progress in most parts of the state. Some producers were irrigating in areas of South Texas, where the rainfall has been scarce. Net sales totaled 353,200 MT and were down 22 percent from the previous week and 28 percent from the prior four-week average. Increases were reported for Mexico, the Philippines and Japan. Exports totaled 542,000 MT and were down 14 percent from the previous week, but up 14 percent and from the prior four-week average. The destinations were primarily the Philippines, Mexico and Japan.
Corn prices were higher at the end of last week with cash prices gaining 16 cents to close at $3.74 per bushel and March futures gaining 15 cents to close at $3.75 per bushel. The USDA NASS Field Office reported that producers in the southern areas of the state continued planting corn. Net sales totaled 692,400 MT and were down 7 percent from the previous week and 24 percent from the prior four-week average. Increases were primarily for Mexico, Japan and South Korea. Exports totaled 1,497,800 MT–a marketing-year high—and were up 24 percent from the previous week and 38 percent from the prior four-week average. The primary destinations were Mexico, Japan and Colombia.
Grain Sorghum cash prices were higher at the end of last week, gaining 32 cents to close at $5.68 per cwt. The USDA NASS Field Office reported that sorghum was being planted in the Lower Valley and in South Texas, while field work preparations were underway in the Blacklands and North East Texas. Net sales totaled 16,200 MT and were down 81 percent from the previous week and 78 percent from the prior four-week average. Increases were for China, the Republic of South Africa and Japan. Exports totaled 102,800 MT and were down 42 percent from the previous week and 30 percent from the prior four-week average. The primary destinations were China, the Republic of South Africa and Indonesia.
Milk prices were steady at the end of last week, with March Class III milk futures remaining at $15.94 per cwt.
This week’s U.S. Drought Monitor for Texas showed drastic worsening drought conditions for the state, with 24.50 percent of Texas still in some stage of drought intensity, up 16.07 percentage points from last week. Additionally, 1.01 percent of the state remains in severe, extreme, or exceptional drought, up 0.19 percentage points from three months ago. On the national level, drought conditions worsened slightly, with 33.72 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 2.19 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.