TDA Market Recap, Sept. 30, 2014

Source:  Texas Department of Agriculture Market News
For the week ending Sept. 27, 2014, feeder cattle prices quoted by Texas auctions were mostly steady compared to their previous sale, with some $8 lower to $10 higher per hundredweight (cwt). Texas direct feeder cattle sales were also mostly steady, with a few $3 higher. No fed cattle cash sales were reported. Formula trades were $1 lower on a dressed basis. Wholesale beef values were lower. Limited cattle supplies continue to support the market. Beef export sales for the week totaled 12,200 metric tons (MT), down 22 percent from the previous week and 3 percent from the prior four-week average. Export shipments of 13,400 MT were down 10 percent from a week earlier, but up 1 percent from the average.
Cotton prices were lower after China announced it will set its import quota for this marketing year at the World Trade Organization minimum, about 10 million bales below last year’s imports and 4 million bales below the USDA projection for this year.  Losses were limited somewhat by rain that slowed module movement to gins, caused harvest delays and raised concerns about possible damage to crop quality. USDA NASS reported that the nation’s cotton crop was in 48 percent good to excellent condition, down one point from a week ago, while the area rated poor to very poor held steady at 18 percent. Eight percent of the acreage has been harvested, slightly behind normal. In Texas, cotton was rated 34 percent good to excellent, unchanged from last week; 26 percent was rated poor to very poor, a one point improvement. Harvest was 16 percent complete statewide, compared to 13 percent on average for this date. Export data were mixed, with strong sales, but weak shipments. Sales were more than double the previous week, up 68 percent from the prior four-week average and well above the weekly average needed to meet USDA projections for the marketing year. Shipments were down 16 percent from a week ago, 10 percent below the average and less than half the weekly average needed to meet expectations.
Wheat prices were higher as the recent price declines generated renewed buying interest. However, large world supplies and beneficial rains on the U.S. Southern Plains continued to pressure the market and limited the potential gains. Nationally, winter wheat planting is 25 percent complete, somewhat ahead of the 22 percent average. In Texas, wheat seedings are 20 percent complete, compared to 25 percent on average. Wheat export sales came in higher than expected, up 26 percent from last week and one percent higher than the prior four-week average. Shipments were down 39 percent from a week ago and 26 percent lower than the average.
Corn and grain sorghum prices were lower due to increasing harvest season supplies from what is expected to be a record-large corn crop. Reports indicate that many areas of the Corn Belt are seeing better-than-expected yields. USDA NASS reported that the U.S. corn crop remained in 74 percent good to excellent condition, unchanged from a week earlier. However, crop development is lagging, with 42 percent of the acreage mature, compared to 54 percent on average by this date, and only seven percent of the crop has been harvested, less than half the average 15 percent. The Texas corn crop is 67 percent harvested, slightly more than the normal 65 percent, with the remaining acreage rated in 67 percent good to excellent condition. Export data were supportive. Corn export sales were up 27 percent from a week ago and export shipments MT were up 44 percent.
Rain fell last week south of a line from Del Rio to Austin to Huntsville, with the heaviest totals south of San Antonio. Last week’s U.S. Drought Monitor showed continued improvement in conditions in Texas with 76 percent of the state now in some degree of drought or abnormal dryness, down seven percentage points from a week ago. That’s the lowest percentage in drought since early January this year. Nationally, the total acreage experiencing abnormal dryness or some degree of drought remained unchanged at 45 percent of the contiguous states.
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.