TDA Market Recap, May 23, 2017

Source: Texas Department of Agriculture
For the week ending May 19, 2017, Texas feeder cattle auctions reported uneven prices with instances of steady to $4 higher, and steady to $7 lower. Texas Weekly Direct reported prices steady to $4 lower. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $2.74 to end at $247.14 per hundredweight (cwt) and Select Grade losing $2.97 to end at $221.42 per cwt.
For the time period of May 8-14 the USDA NASS Field Office reported that cattle were in mostly good condition across the state. Flies were prevalent in the Blacklands and caused stress to livestock. Pasture and range condition were rated good to fair statewide, but there were areas in Central and South Texas, where the pasture was drying up and even changing colors due to the lack of moisture. Tornadoes were reported in the Blacklands.
For the time period of May 5-11, 2017, exporters reported net sales of beef totaling 7,600 metric tons (MT) and were down 30 percent from the previous week and 56 percent from the prior four-week average. Increases were reported primarily for Japan, Mexico and Taiwan. Exports totaled 14,000 MT and were up 9 percent from the previous week and 6 percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were lower at the close of last week, with cash prices losing 1.00 cents to end at 77.50 cents per pound and July futures losing 1.87 cents to end at 79.45 cents per pound. The USDA NASS Field Office reported that cotton planting was underway in the High and Low Plains, the Blacklands, North East Texas and the Trans-Pecos. Cotton in the Upper Coast was squaring. Net upland sales totaled 120,700 running bales (RB) were down 25 percent from the previous week and 26 percent from the prior four-week average. Increases were reported primarily for Vietnam, Turkey and Indonesia. Exports totaled 388,000 RB and were down 6 percent from the previous week, but up 9 percent from the prior four-week average. The primary destinations were Vietnam, India and China.
Wheat prices were higher at the close of last week with cash prices gaining 14 cents to end at $3.69 per bushel and July futures gaining 13 cents to end at $4.38 cents per bushel. The USDA NASS Field Office reported that winter wheat condition was rated mostly fair to good statewide. Harvest continued in the southern districts and was just getting underway in the Southern Low Plains, the Blacklands and the Trans-Pecos. Hail in the Northern Low Plains destroyed some wheat acres. Producers in the Northern High Plains were still concerned with the quality of the wheat after experiencing two late freeze events. Net sales totaled 247,600 MT and were up noticeably from the previous week and 40 percent from the prior four-week average. Increases were reported for China, Nigeria and Vietnam. Exports totaled 673,200 MT and were up 13 percent from the previous week and 5 percent and from the prior four-week average. The destinations were primarily China, Thailand and Saudi Arabia.
Corn prices were higher at the close of last week with cash and July futures prices both gaining a nickel to end at $3.72 per bushel and $3.73 per bushel, respectively. The USDA NASS Field Office reported that corn planting continued in the Northern High Plains. Producers in areas of South East Texas were irrigating corn fields. Net sales totaled 705,300 MT and were up noticeably from the previous week and 1 percent from the prior four-week average. Increases were reported for Japan, Mexico and Spain. Exports totaled 1,543,400 MT and were up noticeably from the previous week and 31 percent from the prior four-week average. The primary destinations were Mexico, Japan and South Korea.
Grain Sorghum cash prices were higher at the close of week, gaining 9 cents to end at $5.50 per cwt. The USDA NASS Field Office reported that sorghum was heading in the Coastal Bend and that some producers were applying insecticides to sorghum fields to control sugarcane aphid populations. Net sales totaled 56,200 MT and were up noticeably from the previous week and up 5 percent from the prior four-week average. Increases were reported for China, Mexico and Japan. Exports totaled 83,800 MT and were down 55 percent from the previous week and 21 percent from the prior four-week average. The destinations were China, Japan and Mexico.
Milk prices were lower at the end of last week, with May Class III milk futures losing 3 cents to end the week at $15.60 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 34.42 percent of Texas in some stage of drought intensity, up 13.28 percentage points from last week. Additionally, 1.20 percent of the state remains in severe, extreme, or exceptional drought. On the national level, drought conditions worsened slightly, with 16.58 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 1.47 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.