TDA Market Recap, May 13, 2014

Source: Texas Department of Agriculture
For the week ending May 10, 2014, feeder cattle prices reported by Texas auctions were mostly steady to $5 higher per hundredweight (cwt), though a few locations were as much as $4 lower on a portion of their offerings. Texas direct feeder cattle prices were $1 to $7 higher. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were steady. Wholesale beef values were lower. Beef export sales for the week totaled 12,500 metric tons (MT), up 10 percent from the previous week, but down 28 percent from the prior four-week average. Shipments of 13,500 MT were up 13 percent from the previous week and 10 percent from the average.
Cotton prices were lower for the week. Concerns about the very dry conditions on the Texas Plains and planting delays in the Southeast remain supportive. However, they were more than offset by reports of higher exports from India and higher projected cotton ending stocks. Cotton export sales last week for the 2013-14 crop year totaled 63,800 bales, more than double the previous week and up 11 percent from the prior four-week average. Another 150,600 bales of new-crop 2014-15 cotton were sold. Export shipments of 208,300 bales were down five percent from the previous week and 18 percent below the average.
Wheat prices were lower following a mixed set of production, export and supply, and demand data. U.S. wheat production is expected to decline 12 percent from last year. Texas production is expected to total 55.1 million bushels, down 16 percent and the lowest since 2011. Projected world ending stocks came in higher than expected. Export data was mixed with higher sales, but lower shipments. Wheat export sales for the 2013-14 crop year totaled 320,500 MT, up 49 percent from the previous week and 26 percent from the prior four-week average. Sales for the 2014-15 crop year totaled 125,000 MT. Export shipments of 526,600 MT were down 22 percent from a week earlier and eight percent lower than a year ago.
Corn and grain sorghum prices were higher amid concerns about slow corn planting progress. Other data was less supportive. Corn export sales for the 2013-14 crop year were 161,300 MT, down 83 percent from the previous week and 77 percent lower than the prior four-week average. Sales for the 2014-15 crop year totaled 121,000 MT. Export shipments of 1,415,100 MT were up 16 percent from the previous week and up 11 percent from the average. USDA projected U.S. ending corn stocks for the 2013-14 marketing year came in lower than a month ago and well below pre-report expectations. However, global carryout for both 2013-14 and 2014-15 crop years were much higher than expected.
Much of the state recorded rainfall last week with totals of two or more inches in parts of South, East and West Texas. However, little rain fell on the parched Texas High Plains. Last week’s U.S. Drought Monitor showed a further deterioration in conditions in Texas, with 95 percent of the state now rated as abnormally dry or in some degree of drought, up from 90 percent a week ago. The severity of conditions also worsened with higher percentages of the state in the severe, extreme and exceptional categories and smaller percentages rated abnormally dry or in moderate drought. Areas west of I-35 are in the worst shape, though drought is increasing to the east with the drought-free areas in East and South Texas and the normally-arid Trans Pecos region growing smaller. Nationally, conditions declined modestly, with 51 percent the contiguous states reported in some degree of abnormal dryness or drought, up two percentage points from a week ago.
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

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