TDA Market Recap, Oct. 9, 2017

) For the week ending Oct. 6, 2017, Texas feeder cattle auctions were mixed, reporting prices steady to $3 lower with instances of steady to $8 higher. Texas Weekly Direct reported prices steady to $4 lower. Wholesale Beef values were uneven at the end of the week, with Choice Grade holding steady to remain at $197.22 per hundredweight (cwt) and Select Grade losing $1.05 to end at $187.23 per cwt.
For the time period of Sept. 25 – Oct. 1, the USDA NASS Field Office reported that cattle and livestock condition remained good to fair across the state. Pasture and range conditions have not changed much from the previous week, but with recent rains, conditions are expected to improve.
For the time period of Sept. 22-28, U.S. exporters reported net sales of beef totaling 20,800 metric tons (MT), which were up 30 percent from the previous week and 70 percent from the prior four-week average. Increases were reported primarily for Japan, Hong Kong and South Korea. Exports totaled 15,900 MT, which were down six percent from the previous week but up two percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the close of last week, with cash prices gaining 0.75 cents to end at 68.50 cents per pound and October futures gaining 1.27 cents to end at 69.47 cents per bushel. The USDA NASS Field Office reported that cool weather delayed the progress of cotton in the High Plains and the Northern Low Plains. Cotton harvest in areas of the Cross Timbers was on hold due to the rain, while harvest continued in the Blacklands. Net sales totaled 161,000 running bales (RB) for 2017-2018, which were down 17 percent from the previous week but up eight percent from the prior four-week average. Increases were reported primarily for Vietnam, Turkey and China. Exports totaled 114,900 RB, and were down 13 percent from the previous week and 21 percent from the prior four-week average. Exports were reported primarily to Vietnam, China and Mexico.
Wheat prices were lower at the close of last week, with cash prices and December futures both losing 2 cents to close at $3.72 per bushel and $4.37 per bushel, respectively. The USDA NASS Field Office reported that the rainfall helped the early planted wheat and oats, but it delayed seeding operations. Early planted wheat was emerging in the Southern Low Plains. Net sales totaled 492,300 MT and were up 13 percent from the previous week and 37 percent from the prior four-week average. Increases were reported primarily for the Philippines, China and Japan. Exports totaled 715,500 MT and were up 68 percent from the previous week and 88 percent from the prior four-week average. The primary destinations were the Philippines, China and Mexico.
Corn prices were lower at the close of last week, with cash prices and December futures both losing 2 cents to close at $3.52 per bushel and $3.50 per bushel, respectively. The USDA NASS Field Office reported that corn producers in the Northern High Plains were concerned about the mycotoxins in the corn and the effect it will have on quality. Net sales totaled 814,100 MT for 2017-2018 and were reported primarily for Mexico, South Korea and Colombia. Exports totaled 966,000 MT and were primarily to Mexico, Japan and Colombia.
Grain sorghum cash prices were lower at the close of last week, losing 3 cents to end at $5.43 per bushel. The USDA NASS Field Office reported that sugarcane aphids continued to infest grain sorghum fields in the Southern High Plains, which is requiring producers to monitor pest levels daily. Net sales totaled 116,000 MT for 2017-2018, and were reported for unknown destinations and China. Exports totaled 300 MT and were reported to Mexico.
Milk prices were higher at the close of last week, with October Class III milk futures gaining 47 cents to end the week at $16.80 per cwt.
This week’s U.S. Drought Monitor for Texas showed improving drought conditions for the state, with 13.24 percent of Texas still in some stage of drought intensity, down 16.22 percentage points from last week. On the national level, drought conditions worsened slightly, with 38.85 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 1.92 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 “Texas Timber Price Trends.”
For additional information, contact TDA at (800) 835-5832 or visit www.TexasAgriculture.gov.