TDA Market Recap, Oct. 16, 2017

For the week ending Oct. 13, 2017, Texas feeder cattle auctions were mixed, mostly reporting prices steady to $10 higher with instances of $3 to $5 lower. Texas Weekly Direct reported prices $1 to $5 higher. Wholesale Beef values were higher at the end of the week, with Choice Grade gaining 9 cents to close at $198.22 per hundredweight (cwt) and Select Grade gaining $1.39 to end at $188.66 per cwt.
For the time period of Oct. 2 – 8, 2017, the USDA NASS Field Office reported that cattle and livestock conditions remained mostly good to fair across the state. Reports indicated that the supplemental feeding in South Texas was suspended due to availability of good quality forage. Flies on cattle were a problem in the Coastal Bend. Pasture and range condition improved or were unchanged from the previous week in most parts of the state.
For the time period of Sept. 20 to Oct 5, 2017, U.S. exporters reported that net sales of beef totaled 12,900 metric tons (MT) and were down 38 percent from the previous week and 19 percent from the prior four-week average. Increases were reported primarily for Japan, South Korea and Canada. Exports totaled 16,000 MT and were unchanged from the previous week, but up 5 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were lower at the close of last week with cash prices losing 1.75 cents to end at 66.75 cents per pound and October futures losing 0.96 cents to end at 68.62 cents per bushel. The USDA NASS Field Office reported that cotton in the Northern Plains and the Southern High Plains struggled to develop due to the lack of warm weather. The potential of a freeze concerned cotton producers in those districts. Southern Low Plains cotton producers applied defoliants with boll opener to help cotton advance toward maturity. Cotton harvest continued in the Blacklands and North East Texas. Net sales totaled 154,400 running bales (RB) and were down 4 percent from the previous week and from the prior four-week average. Increases were reported primarily for Indonesia, Vietnam and China. Exports totaled 118,000 RB and were up 3 percent from the previous week, but down 11 percent from the prior four-week average. Exports were reported primarily to Vietnam, China and Indonesia.
Wheat prices were uneven at the close of last week with cash prices losing a penny to close at $3.71 per bushel and December futures gaining 5 cents to close at $4.36 per bushel. The USDA NASS Field Office reported that rains helped wheat progress, but delayed seeding. However, producers across many areas of the state continued seeding wheat between rains. Armyworms were reported in the Blacklands and the Edwards Plateau. Net sales totaled 175,000 MT and were down 65 percent from the previous week and 55 percent from the prior four-week average. Increases were reported primarily for Japan, the Philippines and Honduras. Exports totaled 325,500 MT and were down 55 percent from the previous week and 35 percent from the prior four-week average. The primary destinations were Japan, the Philippines and  Indonesia.
Corn prices were higher at the close of last week with cash prices and December futures both losing 3 cents to close at $3.55 per bushel and at $3.53 per bushel, respectively. The USDA NASS Field Office reported that corn harvest in the Northern High Plains was delayed due to precipitation and mycotoxin levels continued to be a concern among producers. Net sales totaled 1,593,200 MT and were reported primarily for Mexico, Japan and Columbia. Exports totaled 669,600 MT and were primarily to Mexico, Colombia and South Korea.
Grain Sorghum cash prices were higher at the close of lost with gaining 5 cents to end at $5.48 per cwt. The USDA NASS Field Office reported that rain delayed the harvest of sorghum in the Northern and Southern High Plains and Northern Low Plains. Net sales totaled 51,600 MT and resulted as increases for China. Exports totaled 63,600 MT and were reported to China as well.
Milk prices were lower at the close of last week, with October Class III milk futures losing 2 cents to end the week at $16.72 per cwt.
This week’s U.S. Drought Monitor for Texas showed improving drought conditions for the state, with 12.66 percent of Texas still in some stage of drought intensity, down 0.58 percentage points from last week. Additionally, zero percent of the state remains in severe, extreme, or exceptional drought. On the national level, drought conditions improved slightly, with 38.07 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.77 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 “”Timber Price Trends.”
For additional information, contact TDA at (800) 835-5832 or visit www.TexasAgriculture.gov.