TDA Market Recap, Nov. 28, 2016

Source: Texas Department of Agriculture
For the week ending Nov. 25, 2016, Texas feeder cattle auctions reported prices $6 to $10 higher. Texas Weekly Direct reported steady prices. Wholesale Beef values were higher, with Choice Grade gaining $1.96 to close at $187.64 per hundredweight (cwt) and Select Grade gaining $2.57 to close at $171.60 per cwt.
For the time period of Nov. 14 – 20, the USDA NASS Field Office reported that livestock were in good condition heading into the winter grazing season. Range and pasture remained in good condition in many areas of the state.
For the time period of Nov. 11-17, exporters reported net sales of 13,000 metric tons (MT) for 2016, which were up 26 percent from the previous week and 14 percent from the prior four-week average. Increases were reported for South Korea, Mexico and Canada. Exports totaled 18,600 MT, which were up 77 percent from the previous week and 42 percent from the prior four-week average. The primary destinations were South Korea, Japan and Mexico.
Cotton prices were lower at the end of last week, with December futures prices losing 0.95 cents to close at 72.65 cents per pound. The USDA NASS Field Office reported that the cotton harvest continued in areas of the Plains, Blacklands and Edwards Plateau. Net upland sales totaled 254,800 round bales (RB) for 2016/2017, which were up 19 percent from the previous week and 52 percent from the prior four-week average. Increases were reported for China, Vietnam and South Korea. Exports totaled 132,400 RB, which were up 35 percent from the previous week and nine percent from the prior four-week average. The primary destinations were China, Vietnam and Mexico.
Wheat prices were uneven at the end of last week, with cash prices gaining two cents to close at $3.09 per bushel and December futures losing four cents to close at $4.11 per bushel. The USDA NASS Field Office reported that the seeding of Winter Wheat continued throughout the state last week, following row crop harvest. Net sales totaled 712,500 MT for delivery in the 2016-2017 marketing year, which were up 19 percent from the previous week and 27 percent from the prior four-week average. Increases were reported for Japan, China and Peru. Exports totaled 379,500 MT, which were down six percent from the previous week but up 11 percent from the prior four-week average. The primary destinations were Mexico, Morocco and Brazil.
Corn prices were uneven at the end of last week, with cash prices gaining a penny to close at $3.47 per bushel and December futures losing a penny to close at $3.49 per bushel. The USDA NASS Field Office reported that the harvest of row crops were in the final stages in most parts of the state. Corn and sunflower harvest had wrapped up around the state. Net sales totaled 1,688,800 MT for 2016-2017, which were up two percent from the previous week and 31 percent from the prior four-week average. Increases were for Mexico, South Korea and Saudi Arabia. Exports totaled 591,800 MT, which were up nine percent from the previous week but down 16 percent from the prior four-week average. The primary destinations were Mexico, South Korea and Colombia.
Grain sorghum cash prices were higher, gaining a penny to close at $5.15 per cwt. Net sales totaled 292,200 MT, which were down 12 percent from the previous week but up seven percent from the prior the prior four-week average. Increases were reported for China, Japan and Indonesia. Exports totaled 113,600 MT, which were up noticeably from the previous week and from the prior four-week average. The destinations were China and Mexico.
Milk prices were lower at the close of last week, with December Class III milk futures losing 12 cents to close at $16.86 per cwt.
This week’s U.S. Drought Monitor for Texas showed slight improvement in drought conditions for the state, with only 33.47 percent of Texas still in some stage of drought intensity. Additionally, 7.91 percent of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions worsened, with 55.00 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 3.01 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.