TDA Market Recap, Nov. 2, 2015

Source: Texas Department of Agriculture
For the week ending Oct. 31, 2015, Texas auctions quoted feeder cattle prices $2 to $15 higher. Wholesale beef values were higher, with Choice Grade gaining $2.98 to close at $220.04 per hundredweight (cwt) and Select Grade gaining $2.43 to close at $212.07 per cwt. Net sales of 400 metric tons (MT) for 2015, which is a marketing-year low, resulted in increases for South Korea, Canada and Egypt. Exports of 12,300 MT were unchanged from the previous week but up six percent from the prior four-week average. The primary destinations were Japan, Hong Kong and South Korea.
Cotton cash prices were higher at the end of the week, gaining 1.50 cents and closing at 61.87 cents per pound. October futures prices were higher as well, gaining 1.19 cents to settle at 63.32 cents per pound. Net upland sales totaled 76,100 round bales (RB) for 2015-2016 and were down 22 percent from the previous week and 38 percent from the prior four-week average. Increases were reported for Mexico, Pakistan and Vietnam. Exports of 7,100 RB were up 68 percent from the previous week and 29 percent from the prior four-week average. The primary destinations were China, Pakistan and India. The USDA NASS Field office reported that widespread rain delayed cotton harvest in the Plains. Some cotton fields in areas of the Trans-Pecos suffered damaged due to hail storms, while cotton producers in areas of the Southern Low Plains sprayed fields with boll opener and desiccants. Cotton harvest is currently at 37 percent, eight points above the previous year and three points above normal.
Wheat prices were higher at the close of last week with cash prices gaining $0.01 and futures prices gaining $0.02 to settle at $4.12 and $4.94 per bushel, respectively. Net wheat sales of 550,300 MT for delivery in the 2015-2016 marketing year were up 54 percent from the previous week and 86 percent from the prior four-week average. Increases were reported for South Korea, the Philippines and Thailand. Exports of 320,200 MT were up 51 percent from the previous week but down 26 percent from the prior four-week average. The primary destinations were South Korea, the Philippines and Mexico. The USDA NASS Field Office reported that winter wheat and oat seeding continued, with some delays being experienced in areas of the Northern High Plains, Southern Low Plains, Cross Timbers and the Blacklands due to past weeks rains. Recent moisture contributed to the continued development of wheat and oats.
Corn cash and futures prices were lower at the close of last week. Corn cash prices lost $0.02 and futures prices lost $0.03 to close at $3.92 per bushel and $3.82 per bushel, respectively. Net corn sales of 708,800 MT for 2015-2016 were up noticeably from the previous week and 34 percent from the prior four-week average. Increases reported for Mexico, Colombia and Peru. Exports of 433,300 MT were up six percent from the previous week but down 25 percent from the prior four-week average. The primary destinations were Mexico, Colombia and Peru. The USDA NASS Field Office reported that corn and sorghum continued to progress across areas of the Northern High Plains, but harvest was delayed in many areas due to rainfall. Corn harvest is currently at 77 percent, which is 13 points behind normal.
This week’s U.S. Drought Monitor for Texas showed an improvement in drought conditions for the state, with only about 44 percent of Texas still in some stage of drought intensity, which is down 21 percentage points from last week. Additionally, nearly three percent of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved slightly, with nearly 54 percent of the U.S. experiencing abnormal dryness or some degree of drought, down five percentage points from last week.
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.