TDA Market Recap, May 27, 2015

For the week ending May 23, 2015, Texas auctions quoted feeder cattle prices mostly steady, with instances of sales ranging from $2 to $5 higher per hundredweight (cwt). Texas weekly direct feeder cattle sales were mostly steady to firm. Wholesale beef values were higher, with Choice Grade losing $1.68 to close at $260.25 per cwt and Select Grade losing $3.48 to close at $247.62 per cwt. Net export sales for May 8-14 were up noticeably from the previous week. Export shipments were down one percent from the previous week, and shipments primarily went to Japan, Mexico and South Korea.
Cotton cash prices were 2.75 cents lower than the previous week and closed at 61.88 cents per pound. July futures prices settled at 65.30 cents per pound, 1.54 cents higher when compared to last week. For the reporting period of May 11-17, the USDA NASS Texas field office published that cotton planting progressed in South Central Texas, the Lower Valley and South Texas. Net export cotton sales were up 22 percent from the previous week’s sales. Shipments were up 47 percent from the previous week and nine percent from the average.
Wheat cash prices lost $0.09 to settle at $4.88 per bushel, while futures prices gained $0.05 to settle at $5.47 per bushel. The USDA NASS Texas field office reported that 96 percent of the Texas wheat crop is in the heading stage, with 56 percent of the acreage in good-to-excellent condition. Eighty-six percent of the Texas Winter Wheat crop remains in fair-to-excellent condition. Net export sales for wheat were down 36 percent from the previous week and down noticeably from the prior four-week average. Shipments were 24 percent higher than the previous week but 15 percent lower than the average.
Texas corn prices were mixed with cash prices up to $3.97 per bushel and futures prices down to $3.60 per bushel. The USDA NASS Texas field office reported 73 percent of the planted Texas corn crop has emerged, four percentage points below this same point last year. Seventy-five percent of Texas corn acreage had been planted, which is up four percent from last week but down 16 percent from the same period last year. Corn export sales were up noticeably from the previous week and 12 percent from the four-week average. Export shipments were three percent lower than last week and five percent lower than the average.
According to USDA NASS, areas of the Blacklands, Northeast Texas, the Coastal Bend and South Texas received upwards of 10 inches of precipitation, while the Trans-Pecos and the Southern High Plains received only trace amounts of rainfall. Last week’s U.S. Drought Monitor for Texas showed a significant improvement in drought conditions for the state, with just under 30 percent of Texas still experiencing some stage of drought intensity. Additionally, only about 3.29 percent of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved slightly with approximately 52 percent of the U.S. experiencing abnormal dryness or some degree of drought, down more than 3.60 percentage points from last week.
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.
Source: Texas Department of Agriculture