TDA Market Recap, May 10, 2016

Source: TexasAgriculture.gov
For the week ending May 6, 2016, Texas feeder cattle auctions reported prices steady to $10 lower, with instances of steady to $5 higher. Texas Weekly Direct reported prices $2 to $6 lower. Estimated cattle harvest for the week totaled 552,000 head, down 1.3 percent from last year’s total. Wholesale Beef values were lower, with Choice Grade losing $6.03 to close at $203.74 per hundredweight (cwt) and Select Grade losing $5.64 to close at $194.32 per cwt.
For the time period of April 25- May 1 the USDA NASS Field Office reported that livestock conditions were mostly good across the state. Range and pasture development continued to make good progress throughout the state, contributing to adequate forage for livestock.
For the time period April 22-28 exporters reported net sales of 15,500 metric tons (MT) for 2016, which were up 29 percent from the previous week and 16 percent from the prior four-week average. Increases were reported for Japan, South Korea and Canada. Exports totaled 12,500 MT–a marketing-year high–, which were up 13 percent from the previous week and eight percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were lower at the end of last week, with cash prices losing 1.25 cents to close at 57.62 per pound and May futures prices losing 2.53 cents to close at 61.83 cents per pound. The USDA NASS Field Office reported that cotton planting was delayed in areas of the Northern Low and High Plains, the Blacklands, and Northeast Texas, due to wet conditions. Net upland sales totaled 61,300 round bales (RB) for 2015-2016, which were up 26 percent from the previous week, but down 45 percent from the prior four-week average. Increases were reported for Brazil, China and Pakistan. Exports totaled 277,600 RB, which were up 14 percent from the previous week and 16 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and Mexico.
Wheat prices were lower at the end of last week, with cash prices losing $0.09 to close at $3.73 per bushel and May futures losing $0.20 to close at $4.41 per bushel. The USDA NASS Field Office reported that winter wheat and oats continued to mature throughout the state, with some hail damage reported in areas of the Southern Low Plains and the Cross Timbers. Areas of the Edwards Plateau experienced some damage due to high winds. Net sales totaled 178,900 MT, which were down 49 percent from the previous week, but up one percent from the prior four-week average. Increases reported for China, Mexico and Nigeria. Exports totaled 385,200 MT, which were down 12 percent from the previous week and four percent from the prior four-week average. The primary destinations were Japan, Nigeria and Mexico.
Corn prices were lower at the end of last week with cash prices losing $0.18 to close at $3.75 per bushel and May futures losing $0.14 to close at $3.76 per bushel. The USDA NASS Field Office reported that corn was beginning to emerge in areas of the Blacklands and South Texas. Sorghum planting remained active throughout the state, while producers in the Southern Low Plains applied fertilizer. Net sales totaled 769,300 MT for 2015-2016, which were down 64 percent from the previous week and 44 percent from the prior four-week average.  Increases were reported for Japan, Mexico and Taiwan. Exports totaled 1,226,000 MT, which were up 13 percent from the previous week and nine percent from the prior four-week average. The primary destinations were Mexico, Colombia and Peru. Grain sorghum cash prices were lower at the end of last week as well, losing $0.04 to close at $5.69 per cwt.
Milk prices were lower at the close of last week, with May Class III milk futures losing $0.12 to close at $12.87 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight improvement in drought conditions for the state, with only 10.67 percent of Texas still in some stage of drought intensity, down 2.42 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 39.64 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 5.75 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.