Agriculture Market Recap for 8/30/10

For the week ending Aug. 28, feeder cattle prices at Texas auctions were mostly steady to $3 higher, with a few as much as $8 higher. However, some sales later in the week were $1 to $4 lower. Tight supplies and good demand continue to support markets, though the hot, dry weather and somewhat volatile grain prices have limited gains. Fed cattle were near unchanged and wholesale beef prices ended the week modestly lower. Cotton prices were higher amid ongoing concerns about flooding in Pakistan. Wheat prices declined as ample global supplies are expected to make up for reduced production in Russia. Corn and grain sorghum ended the week unchanged with expectations for a large U.S. crop offsetting indications that yields may come in lower than current USDA forecasts. As for futures markets, feeder cattle and cotton were higher, while fed cattle, wheat, corn and lumber were lower. Much of the state recorded little or no rainfall during the week, though locally heavy amounts in excess of two inches were reported in parts of West Texas and the High Plains. Topsoil moisture was rated in mostly short to adequate supply. Cotton harvest progressed to 6 percent complete and bolls were opening on 15 percent of the acreage, both well behind the normal pace. Corn harvest was 37 percent complete and 57 percent of the crop was mature. Grain sorghum was 42 percent harvested and rice harvest was 78 percent complete. Preparations for winter wheat seedings are underway with some of the crop planted on the Northern High Plains. Corn and peanuts were reported in mostly good to excellent condition, while cotton, grain sorghum, rice, soybeans and pastures were reported mostly good to fair.

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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.