TDA Market Recap, Oct. 6, 2014

Source:  Texas Department of Agriculture Market News
For the week ending Oct. 4, 2014, feeder cattle prices quoted by Texas auctions were as much as $14 higher per hundredweight (cwt) compared to their previous sale. Lighter weight offerings posted the largest increases, though unweaned calves continue to carry a significant discount to their weaned counterparts. Texas direct feeder cattle sales were mostly $2 to $6 higher. Fed cattle cash sales were $3 higher in very light trade. Wholesale beef values were higher. Limited supplies continue to support prices throughout the cattle-beef complex. Beef export sales were down two percent from the previous week and eight percent lower than the prior four-week average. Export shipments were up three percent from a week earlier and five percent higher than the average.
Cotton prices were higher due to renewed buying interest, tight supplies of high quality cotton for immediate delivery, strong export sales and optimism that China will actually need to import more cotton than currently expected. USDA NASS reported that the Texas cotton crop was 17 percent harvested, somewhat higher than both last year and the five-year average. The crop was rated in 33 percent good to excellent condition, down a point from last week. The U.S. cotton crop was only 10 percent harvested, compared to seven percent at this time last year and 10 percent on average, as rain and cool weather has slowed crop development and harvest progress across the Cotton Belt. The crop was rated in 49 percent good to excellent condition, up a point from last week. Cotton export sales for the week were up 45 percent from the previous week and more than three times the prior four-week average. Export shipment bales were the lowest weekly total so far this marketing year, down 12 percent from the previous week and 18 percent lower than the average.
Wheat prices were higher following a stronger than expected export report and planting delays on the U.S. Southern Plains. However, those rains are helping replenish soil moisture and should benefit the crop in the long run. U.S. winter wheat seedings are 43 percent complete, well ahead of both last year and the average. In Texas, winter wheat is 41 percent planted, compared to 40 percent at this time last year and 36 percent on average. Wheat export sales were up 92 percent from the previous week and 90 percent above the prior four-week average. Exports were up 20 percent from the previous week, but down 13 percent from the average.
Corn and grain sorghum prices were higher as rains slowed harvest progress in parts of the Corn Belt. Conditions still favor a record-large corn crop this year with unofficial reports suggesting that many areas of the Corn Belt are seeing better-than-expected yields. USDA NASS reported the Texas corn crop 68 percent harvested, compared to 64 percent at this time last year and 69 percent on average; 76 percent of the remaining acreage is mature. The crop was rated in 67 percent good to excellent condition, unchanged from a week ago. The U.S. corn crop was 12 percent harvested, up from 11 percent last year, but well below the 23 percent average. Crop maturity is also lagging the average, indicating a larger-than-usual acreage is still vulnerable to an early frost. The crop was rated in 74 percent good to excellent condition, unchanged from last week. The Texas grain sorghum crop is 68 percent harvested, slightly ahead of normal, while the U.S. harvest was running somewhat behind normal at 32 percent complete. Corn export sales were down 24 percent from the previous week. Exports were down 40 percent from a week earlier.
Most of the state east of I-35 recorded one half inch or more of rainfall last week, while other locations saw only scattered showers and generally light rainfall totals. Last week’s U.S. Drought Monitor showed continued improvement in conditions in Texas with 71 percent of the state now in some degree of drought or abnormal dryness, down five percentage points from a week ago and the lowest reading since November 2010.  Nationally, 48 percent of the country is experiencing abnormal dryness or some degree of drought, up three points from a week earlier.
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.