TDA Market Recap May 19, 2014

Source: Texas Department of Agriculture
For the week ending May 17, 2014, feeder cattle prices reported by Texas auctions were mostly steady to $6 higher per hundredweight (cwt), with a few locations as much as $8 higher on a portion of their offerings. Texas direct feeder cattle prices were steady to $3 higher. Lower supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $1.35 lower. Wholesale beef values were higher. Weekly beef export sales totaling 12,700 metric tons (MT) were up two percent from the previous week, but down 20 percent from the prior four-week average. Japan, Canada and Mexico were the top buyers. Export shipments of 13,900 MT were up three percent from the previous week and 11 percent above the average.
Cotton prices were lower due to weak export sales and higher projected U.S. and world carryover supplies at the end of the marketing year. Lower stock markets also were a factor. There are ongoing concerns about the very dry conditions on the Texas Plains, but that impact may be mostly priced into the market, at least for now. Cotton export sales totaled 34,000 for the current marketing year, down 47 percent from the previous week and down 55 percent from the prior four-week average. Turkey, China and Mexico were the primary buyers. Another 12,100 bales of new-crop cotton also were sold. Shipments of 210,900 bales were up one percent from the previous week, but down nine percent from the average.
Wheat prices were lower as large world supplies and weak U.S. exports continue to burden the market. U.S. exports have not increased substantially because of the turmoil in Ukraine, and there were reports that Chinese wheat production might increase by one percent this year. Wheat export sales totaling 54,900 MT for the current marketing year were down 83 percent from both a week earlier and the average. Brazil, Iraq and the Philippines were the top buyers. An additional 197,100 MT of new-crop wheat was sold. Export shipments of 635,300 MT were up 21 percent from the previous week and 12 percent above the average.
Corn and grain sorghum prices also were lower due to mostly-weak export data, ample current supplies and reports of good planting progress in much of the Corn Belt. Corn old-crop export sales for the week totaled 343,000 MT, more than two times higher than the previous week, but down 30 percent from the prior four-week average. Egypt, Japan and Portugal were the primary buyers. New-crop sales totaled 47,300 MT. Export shipments of 1,023,300 MT were down 28 percent from the previous week and 23 percent lower than the average.
Most of the state south and east of a line from Del Rio to Wichita Falls recorded rainfall last week. Totals of two or more inches were common, with scattered locations receiving six or more inches. However, very little rain fell in the driest areas on the Texas High Plains.
Last week’s U.S. Drought Monitor, issued before the rain, showed a very modest improvement in conditions in Texas, with 91 percent of the state now rated as abnormally dry or in some degree of drought, down from 95 percent a week ago. The area in the worst category, exceptional drought, declined by about a half a percentage point, and the area in extreme drought fell by nearly six points. Areas west of I-35 remain in the worst shape. Nationally, conditions also improved somewhat with 49 percent the contiguous states reported in some degree of abnormal dryness or drought, down 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.