TDA Market Recap, Oct. 10, 2016

For the week ending Oct. 7, 2016, Texas feeder cattle auctions reported prices steady to $15 lower. Texas Weekly Direct reported prices of $2 to $9 lower, with instances of $10 to $11 lower. Wholesale Beef values were lower, with Choice Grade losing $3.27 to close at $183.07 per hundredweight (cwt) and Select Grade losing $2.97 to close at $174.51 per cwt.
For the time period of Sept. 27 – Oct. 2, the USDA NASS Field Office reported that livestock remained in good condition throughout most of the state. Stock tanks and ponds were still full due to recent rains. Range and pasture continued to improve in areas of South Texas and the Edwards Plateau. Fall armyworm activity remained a concern throughout many areas of the state.
For the time period of Sept. 23-29, exporters reported net sales of 17,600 metric tons (MT) for 2016, which were up 31 percent from the previous week and 56 percent from the prior four-week average. Increases were reported for South Korea, Japan and Canada. Exports totaled 13,600 MT, which were down three percent from the previous week but up two percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were lower at the end of last week, with cash prices losing 1.25 cents to close at 65.87 cents per pound and October futures prices losing 2.69 cents to close at 67.19 cents per pound. The USDA NASS Field Office reported that cotton harvest continued across the southern half of the state, while harvest was just getting underway in areas of West Texas and the Plains. Many producers in areas of the High Plains were making plans to defoliate cotton. Cotton bolls were beginning to open in areas of the Southern Low Plains and Trans-Pecos. Net upland sales totaled 158,900 round bales (RB) for 2016-2017, which were up 73 percent from the previous week but down 18 percent from the prior four-week average. Increases were reported for Vietnam, China and Indonesia. Exports totaled 212,500 RB, which were up 39 percent from the previous week and 29 percent from the prior four-week average. The primary destinations were Indonesia, China and Turkey.
Wheat prices were steady at the end of last week, with cash and December futures remaining at $2.93 per bushel and $4.03 per bushel, respectively. The USDA NASS Field Office reported that Winter Wheat seeding was in full swing across the state with an increase in activity in some areas due to improved soil moisture conditions. Rainfall also aided recently seeded and emerged wheat, but it delayed land preparations in areas of South Central Texas and the Southern Low Plains. Net sales totaled 377,000 MT for delivery in the 2016-2017 marketing year and were down 34 percent from the previous week and 31 percent from the prior four-week average. Increases were reported for the Philippines, Japan and Thailand. Exports totaled 700,700 MT, which were down 17 percent from the previous week but three percent from the prior four-week average. The primary destinations were Brazil, Japan and Mexico.
Corn prices were lower at the end of last week, with cash and December futures both losing $0.08 to close at $3.35 per bushel and $3.40 per bushel, respectively. The USDA NASS Field Office reported that corn harvest was in full swing in areas of the Northern High Plains, while some late planted corn was chopped for silage. Corn harvest continued in areas of South Texas. Net sales totaled 2,060,800 MT for 2016-2017. The primary destinations were Mexico, Japan and Saudi Arabia. Exports totaled 1,390,200 MT and were reported to Japan, South Korea and Mexico.
Grain sorghum cash prices were lower, losing $0.14 to close at $4.95 per cwt. The USDA NASS Field Office reported that sorghum harvest continued in the Northern High Plains and Southern Low Plains.
Milk prices were higher at the close of last week, with October Class III milk futures gaining $0.01 to close at $14.99 per cwt
This week’s U.S. Drought Monitor for Texas showed a worsening in drought conditions for the state, with 11.96 percent of Texas still in some stage of drought intensity, up 6.79 percentage points from last week. On the national level, drought conditions improved slightly, with 43.81 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 2.59 percentage points from last week.
Source: Texas Department of Agriculture