TDA Market Recap, Sept. 19, 2016

For the week ending Sept. 16, 2016, Texas feeder cattle auctions reported uneven prices, with instances of $2 to $7 lower and steady to $4 higher. Texas Weekly Direct reported uneven prices as well, with instances of $2 lower and steady to $2 higher. Wholesale Beef values were lower, with Choice Grade losing $1.33 to close at $186.20 per hundredweight (cwt) and Select Grade losing $2.84 to close at $178.38 per cwt.
From the time period of Sept. 5-11, the USDA NASS Field Office reported that livestock were in good condition throughout most of the state. Range and pasture conditions improved due to recent rainfall, and stock tanks were still full from previous weeks. Armyworm infestations persisted in some areas of East Texas.
For the time period of Sept. 2-8, exporters reported net sales of 20,300 metric tons (MT) for 2016, which were up noticeably from the previous week and up 90 percent from the prior four-week average. Increases were reported for South Korea, Japan and Hong Kong. Exports totaled 17,400 MT — a marketing-year high — and were up noticeably from the previous week and 38 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the end of last week, with cash prices gaining 0.50 to close at 65.87 cents per pound and October futures prices gaining 0.77 cents to close at 67.74 cents per pound. The USDA NASS Field Office reported that in the Blacklands, Coastal Bend and Upper Coast, cotton harvest was delayed due to the recent rainfall and wet field conditions. Cotton harvest continued in areas of South Texas. Cool temperatures last week slowed cotton growth in the Northern High Plains. Net upland sales totaled 136,400 round bales (RB) for 2016-2017 and were reported for Indonesia, Vietnam and China. Exports totaled 124,900 RB and were reported to Vietnam, Mexico and Turkey.
Wheat prices were mixed at the end of last week, with cash prices losing $0.06 to close at $3.07 cents per bushel and December futures gaining $0.17 to close at $4.17 per bushel. The USDA NASS Field Office reported wheat seeding was underway in areas of the Northern Plains, Edwards Plateau and South Central Texas. Net sales totaled 402,200 MT for delivery in the 2016-2017 marketing year, which were down 39 percent from the previous week and 11 percent from the prior four-week average. Increases were reported for Japan, the Philippines and Sri Lanka. Exports totaled 708,500 MT, which were up 12 percent from the previous week and 13 percent from the prior four-week average. The primary destinations were the Philippines, Mexico and Sri Lanka.
Corn prices were lower at the end of last week, with cash prices losing $0.03 to close at $3.32 per bushel and December futures gaining $0.08 to close at $3.37 per bushel. The USDA NASS Field Office reported that corn development continued to progress favorably across the state, with harvest wrapping up in areas of the Blacklands and South Central Texas. Net sales totaled 703,500 MT for 2016-2017. The primary destinations were South Korea, Colombia and Chile. Exports totaled 1,128,500 MT, which were reported to South Korea, Mexico and Japan.
Grain sorghum cash prices were down, losing $0.05 to close at $4.89 per cwt. Sorghum harvest was delayed due to wet conditions in the Blacklands and South Central Texas. The USDA NASS Field Office reported that sugarcane aphid problems remained a concern in areas of the Northern High Plains.
Milk prices were lower at the close of last week, with September Class III milk futures losing $0.07 to close at $16.36 per cwt
This week’s U.S. Drought Monitor for Texas showed improvement in drought conditions for the state, with only 3.78 percent of Texas still in some stage of drought intensity, down 3.76 percentage points from last week. On the national level, drought conditions worsened slightly, with 44.20 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 0.20 percentage points from last week.
Source: Texas Department of Agriculture