TDA Market Recap, Oct. 30, 2017

For the week ending Oct. 27, 2017, Texas feeder cattle auctions were uneven, reporting prices mostly steady to $8 higher with instances of steady to $4 lower. Texas Weekly Direct reported prices steady to $2 lower with instances of $1 to $2 higher. Wholesale Beef values were higher at the end of the week, with Choice Grade gaining $4.05 to close at $203.30 per hundredweight (cwt) and Select Grade gaining $1.43 to end at $192.48 per cwt.
For the time period of Oct. 16-22, 2017, the USDA NASS Field Office reported that cattle and livestock condition remained mostly good to fair across the state. However, producers were using supplemental feeding in the Cross Timbers due to inadequate pasture. Some producers reported emerging respiratory problems in cattle. Horn flies continued being an issue in areas of Northeast Texas. Pasture and range condition did not change much from the previous week, remaining mostly fair to good across the state.
For the time period of Oct. 13-19, 2017, U.S. exporters reported that net sales of beef totaled 6,900 metric tons (MT) for 2017, which were up 25 percent from the previous week and 7 percent from the prior four-week average. Increases were reported primarily for South Korea, Hong Kong and Mexico. Exports totaled 14,200 MT and were down 11 percent from the previous week and 12 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 holding steady at 68.00 cents per pound and December futures losing 1.52 cents to end at 68.20 cents per bushel. The USDA NASS Field Office reported that cotton harvest was underway in the Plains, Blacklands, Trans-Pecos and Edwards Plateau. Net sales totaled 289,100 running bales (RB) for 2017-2018 — a marketing-year high — and were up 14 percent from the previous week and 52 percent from the prior four-week average. Increases were reported for Turkey, Vietnam and Indonesia. Exports totaled 94,700 RB, which were up 10 percent from the previous week but down 16 percent from the prior four-week average. Exports were reported primarily to Vietnam, Mexico and Taiwan.
Wheat prices were lower at the close of last week, with cash prices losing 8 cents to close at $3.60 per bushel and December futures losing 9 cents to close at $4.25 per bushel. Net sales totaled 360,600 MT, which were down 41 percent from the previous week and 16 percent from the prior four-week average. Increases were for Japan, the Philippines and Vietnam. Exports totaled 119,700 MT and were down 62 percent from the previous week and 73 percent from the prior four-week average. The primary destinations were the Philippines, Panama and Brazil.
Corn prices were lower at the close of last week, with cash prices losing 3 cents to close at $3.51 per bushel and December futures losing 4 cents to close at $3.47 per bushel. The USDA NASS Field Office reported that the corn harvests were in full swing in the Northern High Plains. Net sales totaled 1,288,300 MT and were up 3 percent from the previous week and 32 percent from the prior four-week average. Increases were reported for Japan, Mexico and South Korea. Exports totaled 604,400 MT and were primarily to Mexico, Peru and Japan.
Grain sorghum cash prices were lower at the close of the week, losing a nickel to end at $5.41 per cwt. The USDA NASS Field Office reported that the sorghum harvests were in full swing in the Northern High Plains. Net sales totaled 3,400 MT and resulted as increases primarily for China. Exports totaled 72,000 MT and were reported for China and Mexico.
Milk prices were higher at the close of last week, with November Class III milk futures gaining 44 cents to end the week at $16.42 per cwt.
This week’s U.S. Drought Monitor for Texas showed a slight improvement in drought conditions for the state, with 19.11 percent of Texas still in some stage of drought intensity. Additionally, none of the state remains in severe, extreme or exceptional drought, down 1.26 percentage points from three months ago. On the national level, drought conditions worsened slightly, with nearly 40.12 percent of the U.S. experiencing abnormal dryness or some degree of drought.

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.