TDA Market Recap, Oct. 13, 2014

Source:  Texas Department of Agriculture Market News

For the week ending Oct. 11, 2014, feeder cattle prices quoted by Texas auctions were mostly steady to $5 higher per hundredweight (cwt) compared to their previous sale, with some locations as much as $10 higher. Demand was strongest for lighter weight offerings to turn out on fall and winter pastures. Texas direct feeder cattle sales were mostly $3 to $6 higher. Fed cattle cash sales were $2 higher. Wholesale beef values were higher. Limited supplies continue to support prices throughout the cattle-beef complex. Beef export sales for the week were up 18 percent from the previous week and five percent higher than the prior four-week average. Export shipments were up two percent from the previous week and five percent above the average.
Cotton prices were higher because of concerns about damage from cool, wet weather on the Texas High Plains and tight supplies of high quality fiber. On Friday, USDA lowered its production forecast and projected carryover stocks. USDA NASS reported 47 percent of the U.S. cotton crop was rated in good to excellent condition, down two points from last week. Harvest was completed on 15 percent of the acreage, higher than at this time last year, but below the 18 percent average for this date. Texas cotton was rated 32 percent good to excellent, down one point from a week ago. The Texas crop is 19 percent harvested, compared to 17 percent on average. A disappointing export report showing both sales and shipments well below the weekly averages needed to meet USDA projections for the marketing year. Cotton export sales were down 70 percent from the previous week and 35 percent below the prior four-week average. Exports were up five percent from the previous week, but down eight percent from the average.
Wheat prices were higher. The U.S. winter wheat crop is 43 percent planted, well ahead of both last year and the five-year average. In Texas 54 percent of the crop is seeded, compared to 49 percent on average. Wheat export sales were down 50 percent from a week earlier and 30 percent lower than the prior four-week average. Export shipments were up 21 percent from the previous week and 14 percent higher than the average.
Corn and grain sorghum prices were higher due to harvest delays in parts of the Corn Belt and supportive export data. However, conditions still favor a record-large corn crop this year and on Friday, USDA raised its corn production forecast and projected carryover stocks. Last week, 74 percent of the U.S. corn crop was rated in good to excellent condition, unchanged from a week ago. Seventeen percent of the crop is harvested, just slightly more than half the 32 percent average. Texas corn was rated in 67 percent good to excellent condition, also unchanged from last week, with 69 percent of the crop harvested. U.S. grain sorghum was rated in 57 percent good to excellent condition with 37 percent of the acreage harvested one point behind the average. Texas grain sorghum was ahead of average at 73 percent complete with 60 percent of the remaining crop rated in good to excellent condition. Export data were supportive with corn sales up 23 percent from the previous week and shipments up 58 percent.
Most of the state recorded rainfall last week except much of the Trans-Pecos region and southwest Texas. Scattered locations reported two inches or more of rain and the largest rainfall totals were recorded in northeast and north central Texas. Last week’s U.S. Drought Monitor showed continued improvement in conditions in Texas with 70 percent of the state now in some degree of drought or abnormal dryness, down one percentage point from a week ago. Nationally, the total acreage rated abnormally dryness or in some degree of drought also declined by one point to 47 percent of the contiguous states. California, Oregon and Nevada remain in the worst condition.
Additional information on agricultural weather, crop progress and agricultural markets can be found on the TDA Market News page.

*Data not available due to the Federal government shutdown in October 2013.
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.