TDA Market Recap, Nov. 9, 2015

For the week ending Nov. 7, 2015, Texas auctions quoted feeder cattle prices $3 to $20 higher, with incidents of $2 to $5 lower. Wholesale beef values were lower, with Choice Grade losing $3.95 to close at $215.66 per hundredweight (cwt) and Select Grade losing $5.27 to close at $207.25 per cwt. Net sales of 3,200 metric tons (MT) for 2015 were up noticeably from the previous week but down 60 percent from the prior four-week average. Increases were reported for Japan, Taiwan and Mexico. Exports of 12,100 MT were down two percent from the previous week but up one percent from the prior four-week average. The primary destinations were South Korea, Japan and Hong Kong.
Cotton cash prices were lower at the end of the week, losing 1.49 cents and closing at 60.38 cents per pound. October futures prices were lower as well, losing 1.63 cents to settle at 61.66 cents per pound. Net upland sales totaled 147,200 round bales (RB) for 2015-2016 and were up 94 percent from the previous week and 32 percent from the prior four-week average. Increases were reported for Turkey, Egypt and Vietnam. Exports of 2,500 RB — a marketing-year low — were down 65 percent from the previous week and 57 percent from the prior four-week average. The primary destinations were Egypt, Vietnam and Bangladesh. For the time period Oct. 26- Nov. 1, the USDA NASS Field Office reported that the cotton harvest made good progress early in the week in areas of the Southern Low Plains, Cross Timbers and Edwards Plateau. However, rain later in the week delayed activities in most areas. Cotton harvest is currently at 40 percent, which is nine points ahead of the previous year and three points behind normal.
Wheat prices were higher at the close of last week, with cash prices gaining $0.17 and futures prices gaining $0.07 to settle at $4.18 and $4.90 per bushel, respectively. Net sales of 84,600 MT for delivery in the 2015-2016 marketing year were down 85 percent from the previous week and 80 percent from the prior four-week average. Increases were reported for South Korea and Honduras. Exports of 176,900 MT were down 45 percent from the previous week and 52 percent from the prior four-week average. The primary destinations were Taiwan, Japan and Mexico. The USDA NASS Field Office reported that decent precipitation helped with winter wheat and oat development as seeding continued. Some delays were experienced in areas of Cross Timbers and Blacklands due to recent rains.
Corn prices were mixed at the close of last week. Corn cash prices gained $0.02 and futures prices lost $0.05 to close at $3.88 per bushel and $3.73 per bushel, respectively. Net sales of 556,000 MT for 2015-2016 were down 22 percent from the previous week but up seven percent from the prior four-week average. Increases were reported for Japan, Mexico and Peru. Exports of 492,700 MT were up 14 percent from the previous week and two percent from the prior four-week average. The primary destinations were Mexico, Colombia and Japan. The USDA NASS Field Office reported that the corn and sorghum harvest continued to progress, but delays were experienced with the rain event late in the week. Corn harvest is currently at 84 percent, one point behind previous year and 10 points behind normal.
This week’s U.S. Drought Monitor for Texas showed an improvement in drought conditions for the state, with approximately 22 percent of Texas still in some stage of drought intensity. This is down 22 percentage points from last week. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions improved as well, with nearly 48 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 5.6 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 our website, www.TexasAgriculture.gov.