TDA Market Recap, Nov. 6, 2017

For the week ending Nov. 3, 2017, Texas feeder cattle auctions reported prices steady to $10 higher. Texas Weekly Direct reported prices $2 to $7 higher. Wholesale Beef values were uneven at the end of the week, with Choice Grade gaining $5.43 to close at $208.75 per hundredweight (cwt) and Select Grade losing 56 cents to end at $193.08 per cwt.
For the time period of Oct. 23 – 29, the USDA NASS Field Office reported that cattle producers were using supplemental feeding in the Cross Timbers, Northeast Texas, the Coastal Bend and South Texas. However, livestock condition remained mostly good to fair across the state. Pasture and range conditions have been adversely affected by the drought. Cooler temperatures slowed the growth of pastures.
Net sales of beef reported for the time period of Oct. 20 – 26 totaled 16,500 metric tons (MT), which were down 2 percent from the previous week but up 3 percent from the prior four-week average. Increases were reported primarily for South Korea, Japan, and Hong Kong. Exports totaled 17,700 MT and were up 25 percent from the previous week and 14 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the close of last week, with cash prices gaining 0.50 to close at 69.00 cents per pound and December futures gaining 0.21 cents to end at 68.85 cents per bushel. The USDA NASS Field Office reported that a freeze affected cotton fields in the Plains, with some producers reporting damage to late maturing fields. However, cotton harvest continued in full swing in the Plains, Blacklands and Trans-Pecos. Net sales totaled 209,500 running bales (RB) for the 2017-2018 marketing year, and were down 28 percent from the previous week and 2 percent from the prior four-week average. Increases were reported primarily for Pakistan, China and Vietnam. Exports totaled 86,800 RB, which were down 8 percent from the previous week and 16 percent from the prior four-week average. The primary destinations were Vietnam, Mexico and China.
Wheat prices were higher at the close of last week, with cash prices gaining 4 cents to close at $3.61 per bushel and December futures gaining a nickel to close at $4.27 per bushel. The USDA NASS Field Office reported that armyworms continued being an issue in small grain fields across the state. Planting and replanting of wheat continued in many areas. Early planted wheat continued emerging in most parts of the state. Net sales totaled 347,800 MT, which were down 4 percent from the previous week and 15 percent from the prior four-week average. Increases were primarily reported for South Korea, Mexico and the Philippines. Exports totaled 378,000 MT, which were up noticeably from the previous week and up 2 percent from the prior four-week average. The primary destinations were Taiwan, South Korea and Iraq.
Corn prices were uneven at the close of last week, with cash prices gaining 2 cents to close at $3.53 per bushel and December futures losing a penny to close at $3.48 per bushel. The USDA NASS Field Office reported that corn harvest was near completion in the Blacklands. Net sales totaled 811,400 MT, which were down 37 percent from the previous week and 33 percent from the prior four-week average. Increases were reported for Japan, Spain and Peru. Exports totaled 598,300 MT and were primarily reported to Mexico, Japan and Peru.
Grain sorghum cash prices were higher at the close of last week, gaining 6 cents to end at $5.47 per cwt. The USDA NASS Field Office reported that sorghum harvests were in full swing in the Northern High Plains. Net sales totaled 3,400 MT and resulted as increases primarily for China. Exports totaled 72,000 MT and were reported to China and Mexico.
Milk prices were higher at the close of last week, with November Class III milk futures gaining 44 cents to end the week at $16.42 per cwt. Net sales totaled 284,000 MT and were up noticeably from the previous week and prior four-week average. Increases were reported for China, unknown destinations, and Japan. Exports totaled 2,300 MT, down 97 percent from the previous week and 95 percent from the prior four-week average. The destinations were Mexico and China.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 28.82 percent of Texas still in some stage of drought intensity, up 9.71 percentage points from last week. On the national level, drought conditions improved, with 33.53 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 2.83 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, bi-monthly “Texas Timber Price Trends.”
For additional information, contact TDA at (800) 835-5832 or visit www.TexasAgriculture.gov.