TDA Market Recap, May 30, 2017

For the week ending May 26, 2017, Texas feeder cattle auctions reported uneven prices with instances of steady to $5 higher, and steady to $5 lower. Texas Weekly Direct reported prices $2 to $5 higher with instances of up to $7 higher. Wholesale Beef values were lower at the end of the week, with Choice Grade losing 14 cents to end at $245.60 per hundredweight (cwt) and Select Grade losing $2.72 to end at $218.45 per cwt.
For the time period of May 15-21 the USDA NASS Field Office reported that cattle were in mostly good condition across the state. Fly numbers were increasing in the Blacklands and North East Texas. Pasture conditions were declining due to lack of moisture in the Edwards Plateau, the Upper Coast, South Texas, South Central and South East Texas. Even though most of the state received rainfall near the end of the week, farmers were concerned high winds and warm temperatures could erode topsoil moisture levels.
For the time period of May 12-18 exporters reported net sales totaling 7,100 metric tons (MT) and were down 6 percent from the previous week and 49 percent from the prior four-week average. Increases were reported for Mexico, Canada and Japan. Exports totaled 13,600 MT and were down 3 percent from the previous week, but up 2 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were uneven at the close of last week, with cash prices remaining steady at the close of last week to end at 75.25 cents per pound and July futures losing 0.13 cents to end at 77.09 cents per pound. The USDA NASS Field Office reported some farmers continued planting cotton in the Plains, but others decided to wait until after the forecasted rainfall at the end of the week. Net upland sales totaled 16,200 running bales (RB)–a marketing-year low—and were down 87 percent from the previous week and 88 percent from the prior four-week average. Increases were reported primarily for Turkey, Brazil and Vietnam. Exports totaled 332,800 RB and were down 14 percent from the previous week and 9 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and India.
Wheat prices were higher at the close of last week with July futures gaining 7 cents to end at $4.38 cents per bushel. The USDA NASS Field Office reported that winter wheat conditions were rated mostly fair to good statewide. Stripe rust was found in winter wheat fields in the Northern High Plains. Wheat harvest slowed down in the Low Plains, the Cross Timbers and the Blacklands due to rain and high humidity. Harvest continued in the Trans-Pecos and South Central Texas with no major setbacks. Net sales totaled 201,900 MT and were down 19 percent from the previous week, but up 49 percent from the prior four-week average. Increases were reported primarily for Mexico, Venezuela and Japan. Exports totaled 733,600 MT and were up 9 percent from the previous week and 17 percent and from the prior four-week average. The destinations were primarily Algeria, Mexico and Japan.
Corn prices were higher at the close of last week July futures gaining 4 cents to end at $3.74 per bushel. Net sales totaled 457,200 MT and were down 35 percent from the previous week and 33 percent from the prior four-week average. Increases were reported primarily for Japan, Mexico and Taiwan. Exports totaled 1,052,400 MT and were down 32 percent from the previous week and 14 percent from the prior four-week average. The primary destinations were Japan, Mexico and Taiwan.
Milk prices were higher at the end of last week, with June Class III milk futures gaining 30 cents to end the week at $16.51 per cwt.
This week’s U.S. Drought Monitor for Texas showed improving drought conditions for the state, with 22.30 percent of Texas still in some stage of drought intensity, down 12.12 percentage points from last week. Additionally, 0.19 percent of the state remains in severe, extreme, or exceptional drought, down 0.63 percentage points from three months ago. On the national level, drought conditions improved as well, with 14.27 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 2.31 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.