TDA Market Recap, Sept. 15, 2014

Source:  Texas Department of Agriculture Market News
For the week ending Sept. 13, 2014, feeder cattle prices quoted by Texas auctions were mostly $2 to $7 higher per hundredweight (cwt) early in the week and then mostly steady later in the week. Texas direct feeder cattle sales were $4 to $12 higher. Fed cattle cash prices were steady. Wholesale beef values were higher for Choice cuts, but lower for Select-grade offerings. Smaller supplies continue to support cattle markets; however, lower beef prices limited the gains, especially later in the week. Beef export sales for the week totaled 14,000 metric tons (MT), up 37 percent from the previous week and 49 percent higher than the prior four-week average. Export shipments of 11,500 MT were down nine percent from a week earlier and 15 percent below the average.
Crop price movements late in the week were largely the result of the monthly Crop Production report and World Agricultural Supply & Demand Estimates issued by USDA on Thursday. A state report from the National Agricultural Statistics Service Texas Field Office includes district-level estimates for corn, grain sorghum and cotton.
Cotton prices were higher following a slight dip in crop condition ratings and a 1 million bale reduction in the U.S. production forecast. There also were concerns that rain and cooler temperatures in much of the Cotton Belt could slow harvest and damage the remaining crop. However, large world cotton supplies and weak export data remained burdensome. USDA NASS reported that 49 percent of the national cotton crop was rated in good to excellent condition, down one point from a week ago, but still much better than the 45 percent at this time last year. Bolls are opening on 37 percent of the acreage; that’s compared to 37 percent on average. Here in Texas, 35 percent of the cotton crop was rated in good to excellent condition, unchanged from a week ago. Thirteen percent of the acreage has been harvested, compared to 10 percent on average by this date. Cotton export sales were a net negative 34,200 bales as cancellations outweighed new purchases. Export shipments of 86,600 bales were down 20 percent from the previous week and 17 percent lower than the prior four-week average.
Wheat prices were lower as larger projected U.S. and world wheat stocks and beneficial rains on the U.S. Southern Plains continued to pressure the market. Nationally, three percent of the winter wheat crop has been planted; that’s compared to four percent on average by this date. The Texas crop also is three percent planted, which is equal to the average. Wheat export sales were four times higher than the previous week and double the prior four-week average. Exports of 559,200 MT were down 25 percent from the previous week, but less than one percent higher than the average.
Corn and grain sorghum prices were lower due to ongoing expectations for a record-large corn crop. Larger projected carryover stocks, as well as the advancing harvest in Texas and other southern states added to the pressure on prices. USDA NASS reported that 74 percent of the U.S. corn crop was rated in good to excellent condition, unchanged from a week ago. Corn export sales totaled 563,200 MT for the first week of the marketing year that began Sept. 1. A total of 1.3 million MT in sales carried over to the new marketing year. Exports of 507,500 MT brought accumulated shipments for the marketing year to 47.4 million MT, nearly three times higher than the previous year. Grain sorghum sales of 208,300 MT went primarily to China and Japan. Shipments of 64,500 MT went all to China.
Rain fell statewide during the week with the heaviest totals in Northern High Plains, South, Central and East Texas. More than five inches of rain fell in some locations and amounts in excess of two inches were common. Last week’s U.S. Drought Monitor showed a modest improvement in conditions in Texas with 86 percent of the state now in some degree of drought or abnormal dryness, down one point from a week ago.
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 800-835-5832 or visit www.TexasAgriculture.gov.