TDA Market Recap, Oct. 26, 2015

Source: Texas Department of Agriculture
For the week ending Oct. 24, 2015, Texas auctions quoted feeder cattle prices $1 to $15 higher. Wholesale beef values were higher, with Choice Grade gaining $3.53 to close at $217.17 per cwt and Select Grade gaining $3.17 to close at $210.90 per cwt. Net sales of 9,300 metric tons (MT) for 2015 were down 33 percent from the previous week and 22 percent from the prior four-week average. Increases were reported for Japan, Mexico and South Korea. Exports of 12,300 MT were up five percent from the previous week and six percent from the prior four-week average. The primary destinations were Hong Kong, Japan and South Korea.
Cotton cash prices were lower at the end of the week, losing 0.74 cents and closing at 60.38 cents per pound. October futures prices were lower, dropping 0.48 cents to settle at 62.76 cents per pound. Net upland sales totaled 96,900 round bales (RB) for 2015-2016, which is up 44 percent from the previous week but down 20 percent from the prior four-week average. Increases were reported for Mexico, Pakistan and Turkey. Exports of 4,300 RB were down 42 percent from the previous week and 26 percent from the prior four-week average. The primary destinations were India, Peru and Bangladesh. The USDA NASS Field Office reported that producers were harvesting cotton in areas of the Plains, Edwards Plateau, Coastal Bend and South Texas, while cotton producers in areas of the Trans-Pecos applied defoliants in preparation for harvest. Cotton harvest is currently at 28 percent, which is six points above the previous year and three points above normal.
Wheat prices were higher at the close of last week, with cash prices gaining $0.05 and futures prices gaining $0.04 to settle at $3.95 and $4.76 per bushel, respectively. Net sales of 357,500 MT for delivery in the 2015-2016 marketing year were down 22 percent from the previous week but up 29 percent from the prior four-week average. Increases were reported for the Philippines, South Korea and Mexico. Exports of 211,900 MT were down 43 percent from the previous week and 60 percent from the prior four-week average. The primary destinations were the Philippines, Taiwan and Nigeria. The USDA NASS Field Office reported that Winter Wheat and oat seeding continued across the state as early-sown wheat emerged in areas of the Northern High Plains. Wheat fields suffered damage due to dry conditions and insects in some areas of the Cross Timbers.
Corn cash and futures prices were higher at the close of last week. Corn cash prices gained $0.08 and futures prices gained $0.07 to close at $3.90 per bushel and $3.80 per bushel, respectively. Net sales of 248,000 MT for 2015-2016 were down 59 percent from the previous week and 57 percent from the prior four-week average. Increases were reported for Japan, Colombia and Mexico. Exports of 409,800 MT were down 33 percent from the previous week and 39 percent from the prior four-week average. The primary destinations were Mexico, Colombia and Japan. The USDA NASS Field Office reported that corn and sorghum harvest continued to progress across areas of the Northern Plains. Corn harvest is currently at 75 percent, nine points behind normal. Grain sorghum prices gained $0.13 to settle at $5.98 per cwt. Exports of 259,700 MT were up one percent from the previous week but down two percent from prior four-week average. The primary destinations were China and Mexico.
This week’s U.S. Drought Monitor for Texas showed slightly worsening drought conditions for the state, with 65.25 percent of Texas still in some stage of drought intensity. Additionally, nearly 42 percent of the state is in severe, extreme or exceptional drought. This is a different picture from three months ago when no area of Texas was experiencing severe, extreme or exceptional drought conditions. On the national level, drought conditions worsened slightly, with nearly 59 percent of the U.S. experiencing abnormal dryness or some degree of drought, up more than five 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 835-5832 or visit www.TexasAgriculture.gov.