TDA Market Recap, Oct. 23, 2017

For the week ending Oct. 20, 2017, Texas feeder cattle auctions were mixed, mostly reporting prices steady to $4 higher with instances of steady to $2 higher. Texas Weekly Direct reported prices unevenly steady with instances of $3 lower to $3 higher. Wholesale Beef values were higher at the end of the week, with Choice Grade gaining $1.05 to close at $199.86 per hundredweight (cwt) and Select Grade gaining 57 cents to end at $191.14 per cwt.
For the time period of Oct. 9 – 15, 2017, the USDA NASS Field Office reported that Cattle and livestock condition remained good to fair across the state. Pasture and range condition was rated mostly fair to good. However, pastures in North East Texas were getting drier and cattle producers had begun feeding hay to supplement grazing. Feral hog activity in pastures and hay meadows continued in North East Texas.
For the time period of Oct. 6 – 12, 2017, exporters reported that net sales of beef totaled 13,600 metric tons (MT) and were up 5 percent from the previous week, but down 13 percent from the prior 4-week average. Increases were reported for Japan, Hong Kong and South Korea. Exports totaled 15,900 MT and were unchanged from the previous week, but down 1 percent from the prior 4-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 holding steady to remain at 66.00 cents per pound and October futures losing 0.65 cents to end at 66.88 cents per bushel. The USDA NASS Field Office reported that last week’s warmer weather aided cotton development in the Plains. Bolls were opening in the Southern Plains and the Edwards Plateau. Cotton harvest continued in the Blacklands. Net sales totaled 253,200 running bales (RB) and were up 64 percent from the previous week and 39 percent from the prior 4-week average. Increases were reported primarily for Vietnam, Bangladesh and Turkey. Exports totaled 86,100 RB–a marketing low—and were down 27 percent from the previous week and 36 percent from the prior 4-week average. Exports were reported primarily to Mexico, Vietnam and China.
Wheat prices were lower at the close of last week with cash prices and December futures both losing 11 cents to close at $4.57 per bushel and $4.23 per bushel, respectively. Net sales totaled 615,400 MT and were up noticeably from the previous week and 75 percent from the prior 4-week average.   Increases were reported primarily for Mexico, China and Japan. Exports totaled 315,000 MT and were down 3 percent from the previous week and 34 percent from the prior 4-week average. The primary destinations were Indonesia, Colombia and Israel.
Corn prices were lower at the close of last week with cash prices and December futures both losing 6 cents to close at $3.47 per bushel and at $3.45 per bushel, respectively. The USDA NASS Field Office reported that corn harvest continued in the Northern High Plains. Net sales totaled 1,254,900 MT and were down 21 percent from the previous week, but up 58 percent from the prior 4-week average. Increases were reported primarily for Mexico, Japan and Honduras. Exports totaled 339,300 MT and were primarily to Mexico, Colombia and Peru.
Grain Sorghum cash prices were lower at the close of lost with, losing 11 cents to end at $5.34 per cwt. The USDA NASS Field Office reported that corn and sorghum harvest continued in the Northern High Plains. Net sales totaled 120,000 MT and resulted as increases for unknown destinations and Mexico. Exports totaled 52,300 MT and were reported to China and Mexico.
Milk prices were lower at the close of last week, with October Class III milk futures losing $1.04 to end the week at $15.72 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 19.19 percent of Texas in some stage of drought intensity, up 6.51 percentage points from last week. Additionally, none of the state remains in severe, extreme, or exceptional drought. On the National level, drought conditions improved slightly, with 37.75 percent of the U.S. experiencing abnormal dryness or some degree of drought, down 0.32 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.