TDA Market Recap, May 2, 2016

Source: Texas Department of Agriculture
For the week ending April 29, 2016, Texas feeder cattle auctions reported prices steady to $10 lower, with one  instance of $2 to $4 higher. Texas Weekly Direct reported prices $4 to $8 lower. Wholesale Beef values were lower, with Choice Grade losing $8.76 to close at $211.45 per hundredweight (cwt) and Select Grade losing $7.96 to close at $202.27 per cwt.
For the time period of April 18-24, the USDA NASS Field Office reported that range and pasture conditions continued to improve and areas that received rain last week experienced good forage growth. Some producers in South Texas reported good forage quality and availability for livestock, while some supplemental feeding took place in Northeast Texas. Producers were applying herbicide and fertilizer to pastures in the Upper Coast.
For the time period of April 15-21, exporters reported net sales of 12,100 metric tons (MT) for 2016, which were down three percent from the previous week and 31 percent from the prior four-week average. Increases were reported for Japan, South Korea and Mexico. Exports totaled 11,100 MT, which were down seven percent from the previous week and one percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were mixed at the end of last week, with cash prices remaining at 58.37 cents per pound and March futures prices losing 1.01 cents to close at 63.76 cents per pound. The USDA NASS Field Office reported that cotton, corn and sorghum progressed well in areas of the Coastal Bend, Upper Coast, and South Texas. Net upland sales totaled 48,700 round bales (RB) for 2015-2016 — a marketing-year-low — and were down 54 percent from the previous week and 60 percent from the prior four-week average. Increases were reported for China, Indonesia and Vietnam. Exports totaled 244,300 RB, which were up 22 percent from the previous week and eight percent from the prior four-week average. The primary destinations were Vietnam, China and Turkey.
Wheat prices were higher at the end of last week, with cash prices gaining $0.03 to close at $3.87 per bushel and May futures gaining $0.02 to close at $4.65 per bushel. The USDA NASS Field Office reported that Winter Wheat progressed well in the Southern High Plains. Wheat continued heading in areas of the Blacklands. Hail damaged Winter Wheat crops in areas of the Southern Low Plains and Cross Timbers. Net sales totaled 351,900 MT, which were up 19 percent from the previous week and up noticeably from the prior four-week average. Increases were reported for Mexico, Taiwan and Japan. Exports totaled 440,000 MT, which were down six percent from the previous week but up 16 percent from the prior four-week average. The primary destinations were Japan, Mexico and Brazil.
Corn prices were higher at the end of last week, with cash prices gaining $0.14 to close at $3.93 per bushel and May futures gaining $0.13 to close at $3.90 per bushel. The USDA NASS Field Office reported that corn and sorghum progressed well in areas of the Coastal Bend, Upper Coast and South Texas. In areas of the Blacklands, corn and sorghum struggled with wet growing conditions. Grain sorghum began emerging in the Southern Low Plains. Corn planting continued in the Northern High Plains, while widespread hail caused damage to corn in areas South-Central Texas. Net sales totaled 2,160,600 MT for 2015-2016 — a marketing-year high — and were up 80 percent from the previous week and noticeably from the prior four-week average. Increases were reported for Japan, Mexico and Taiwan. Exports totaled 1,090,600 MT, which were down 15 percent from the previous week and four percent from the prior four-week average. The primary destinations were Colombia, Mexico and Japan. Grain sorghum cash prices were higher, gaining $0.24 to close at $5.72 per cwt.
Milk prices were lower at the close of last week, with Class III milk futures losing $0.02 to close at $13.62 per cwt.
This week’s U.S. Drought Monitor for Texas showed an improvement in drought conditions for the state, with only 13.09 percent of Texas still in some stage of drought intensity. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved slightly, with 39.28 percent of the U.S. experiencing abnormal dryness or some degree of drought.

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.