TDA Market Recap, March 7, 2016

Source: Texas Department of Agriculture
For the week ending March 4, 2016, Texas feeder cattle auctions reported prices steady to $8 higher with one instance of $1 to $6 lower. Texas Weekly Direct reported prices steady to $4 higher. Wholesale Beef values were mixed, with Choice Grade gaining $3.81 to close at $220.97 per cwt and Select Grade losing $0.85 to close at $211.99 per cwt. For the time period Feb. 22-28 the USDA NASS Field Office reported that statewide, pastures began to improve with recent rainfall, but there were signs of stress from the lack of precipitation in areas of South Texas and the Lower Valley. Cattle remained in good condition as supplemental feeding continued in the Cross Timbers and the Blacklands.
For the time period Feb. 19-25, 2016, exporters reported that net sales totaled10,200 metric tons (MT) for 2016 and were down 18 percent from the previous week, but up two percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 10,500 MT and were up two percent from the previous week, but down seven percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the end of last week, with cash prices gaining 0.50 cents to close at 54.87 cents per pound. March futures prices were higher gaining 0.92 cents to close at 58.93 cents per pound. The USDA NASS Field Office reported that preparations for the upcoming cotton crop continued in areas of the Northern Low Plains and Edwards Plateau, while cotton planting was active in the Lower Valley. Net upland sales totaled 173,900 round bales (RB) for 2015/2016 and were up 57 percent from the previous week, but down 23 percent from the prior four-week average. Increases were reported for Turkey, Vietnam and Mexico. Exports totaled 197,100 RB and were up 15 percent from the previous week and five percent from the prior four-week average. The primary destinations were Vietnam, Turkey and Thailand.
Wheat prices were higher at the end of last week, with cash prices gaining $0.27 to close at $3.90 per bushel; March futures prices gained $0.13 to close at $4.58 per bushel. The USDA NASS Field Office reported that in areas of the High Plains producers were concerned with above normal temperatures as wheat continued to progress out of the dormancy state. Statewide, wheat and oat conditions were mostly fair to good. Net sales totaled 344,300 MT for delivery in marketing year 2015/2016 and were down 11 percent from the previous week, but up 42 percent from the prior four-week average. Increases were reported for Mexico, South Korea and Ecuador. Exports totaled 388,000 MT and were up 69 percent from the previous week and 32 percent from the prior four-week average. The primary destinations were Mexico, South Korea, the Philippines.
Corn prices were higher at the end of last week, with cash prices gaining $0.03 to close at $3.59; March futures gained $0.01 to close at $3.55 per bushel, respectively. The USDA NASS Field Office reported that in areas of the Blacklands, the Coastal Bend, and South Central, corn planting was active. Sorghum planting began in the Coastal Bend, Upper Coast, and the Lower Valley.
Net sales totaled 1,097,600 MT for 2015/2016 and were up 18 percent from the previous week and 25 percent from the prior four-week average. Increases were reported for Colombia, Mexico and Japan. Exports totaled 789,800 MT and were down nine percent from the previous week, but up 13 percent from the prior four-week average. The primary destinations were South Korea, Mexico and Japan. Net sales totaled 39,000 MT for 2015/2016 and were down 10 percent from the previous week and 75 percent from the prior four-week average. Increases were reported for China and Mexico. Exports totaled 107,000 MT and were down 51 percent from the previous week and 46 percent from prior four-week average. The destinations were China and Mexico. Grain Sorghum prices were $0.28 lower to close at $5.11 per cwt
Milk prices were lower at the close of last week, with April Class III milk futures losing $0.02 to close at $13.78 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight worsening in drought conditions for the state, with 24 percent of Texas still in some stage of drought intensity, up 2.26 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought. On the national level, drought conditions worsened slightly, with 31.98 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 2.08 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.