TDA Market Recap, May 6, 2014

Source: Texas Department of Agriculture
For the week ending May 3, 2014, feeder cattle prices reported by Texas auctions were steady at many locations. However, a few noted weaker prices on a portion of their offerings, most often lighter-weight feeders, and some reported prices as much as $8 higher per hundredweight (cwt). Texas direct feeder cattle prices were steady to $2 higher early in the week and as much as $5 higher later in the week. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $0.73 higher per cwt. Wholesale beef values were lower.
Cumulative cattle slaughter year-to-date is running 6.1 percent behind a year ago. Weekly beef export sales totaled 11,400 metric tons (MT), down 37 percent from both the previous week and the prior four-week average. The leading buyers were Japan, Mexico and South Korea. Shipments of 11,900 MT were unchanged from the previous week, but down three percent from the average. Japan, Hong Kong and Mexico were the top destinations.
Cotton prices were higher for the week due to concerns about the very dry conditions on the Texas Plains, lack of irrigation water in the West and planting delays in the Southeast. Weak export data limited the gains. Cotton export sales for the week totaled only 31,400 bales, down 75 percent from the previous week and 48 percent below the prior four-week average. China, Turkey and Taiwan were the leading buyers. An additional 48,900 bales were sold for the 2014-15 marketing year. Shipments of 218,200 bales were unchanged from a week earlier, but down 17 percent from the average.
Wheat prices were higher amid ongoing concerns about dry conditions in U.S. winter wheat areas, earlier freeze damage and planting delays in spring wheat regions. Export data was mixed. Wheat export sales of 214,900 MT were down 37 percent from the previous week and 25 percent from the prior four-week average. The primary buyers were the Philippines, Japan and Brazil. An additional 219,600 MT were sold for the 2014-15 marketing year. Export shipments totaling 678,600 MT were up 31 percent from the previous week and up 27 percent from the average.
Corn and grain sorghum prices were lower on expectations that improved weather conditions would allow corn planting to make rapid progress. Export data was neutral to supportive. Corn export sales for the week totaled 937,900 MT, up 52 percent from a week earlier and 35 percent from the prior four-week average. Japan, Mexico and South Korea were the leading buyers. Another 13,800 MT were sold for the 2014-15 marketing year. Shipments of 1,216,000 MT were down 25 percent from the previous week and eight percent below the average. The top destinations were Japan, Mexico and Egypt.
Little rain fell anywhere in the state last week, with totals of less than one-half inch limited to scattered areas in East Texas and along the Coastal Bend. Last week’s U.S. Drought Monitor showed a continued decline in overall conditions in Texas, with 90 percent of the state now rated as abnormally dry or in some degree of drought, compared to 86 percent a week ago. The area rated in exceptional drought increased by more than five points, and some areas slid from abnormally dry to moderate drought. Areas west of I-35 are in the worst shape, though much of the normally-arid Trans Pecos region remains drought-free. Meanwhile, the drought-free areas in East and South Texas grew smaller.
Nationally, conditions improved slightly, with 49 percent the contiguous states reported in some degree of abnormal dryness or drought, down one percentage point 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.