Agriculture Market Recap for 5/24/10

For the week ending May 22, feeder cattle prices at Texas auctions were mostly steady to $5 lower per hundredweight with a few to $5 higher compared to a week ago. Fed cattle prices were $2.70 lower per hundredweight. Cattle prices normally decline in the late spring and early summer. Lower wholesale beef prices and concerns that a slower economic recovery may reduce future beef demand were also factors in the decline. Cotton prices increased on good export demand and talks of an increase in China’s import quota. Better than expected export demand also boosted grain prices. As for futures markets, cotton, wheat and corn were higher while feeder cattle, fed cattle and lumber were lower. Many areas of the state received rainfall last week with amounts ranging from a trace to as much as five inches. Topsoil moisture was reported in mostly adequate to short supply with much of East Texas short to very short. The state’s wheat crop is 95 percent headed and 2 percent of the acreage has been harvested. Cotton is 48 percent planted, slightly behind the normal pace, and 7 percent of the acreage is squaring. Rice planting is nearing completion. Corn was 96 percent planted and 15 percent of the crop is silking, both slightly behind average. Grain sorghum, peanut and soybean planting were also active and ahead of the normal pace. Most crops and pastures were reported in good to fair condition, while rice was good to excellent.

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All cash prices above are market averages for locations covered by the TDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for 500-600 pound medium and large No.1 steers. Futures prices are quoted for the nearest month contract on the last trading day of the week. For additional information, contact TDA Market News at (800) 252-3407 or visit our website, www.tdamarketnews.com.