Agriculture Market Recap for 8/9/10

For the week ending August 7, feeder cattle price trends at Texas auctions were uneven, from $5 lower per hundredweight to $5 higher. Higher grain prices and steady fed cattle prices pressured the feeder market. Fed cattle prices were near unchanged with wholesale beef prices lower. Cotton ended the week higher on a continued tight supply of certified stocks ready for export and hot weather over much of the Cotton Belt. Wheat prices rose because of the drought in Europe and an announcement that Russia will ban grain exports April 15 though the end of the year. That should boost demand for U.S. wheat and help sustain the market’s recovery from very low prices earlier in the summer. Corn and grain sorghum followed wheat higher. As for futures markets, fed cattle, cotton, wheat and corn were higher, while feeder cattle and lumber were lower. Some of the hottest temperatures of the season and widely scattered showers dominated weather during the week. Soil moisture was reported in adequate to short supply in most areas, though flooding remains a problem in parts of the Lower Valley. Cotton was reported in mostly good to excellent condition and was setting bolls on 78 percent of the acreage, with bolls opening on 12 percent. Corn harvest progressed to 13 percent complete and grain sorghum was 32 percent harvested. Rice was 87 percent headed and 12 percent of the crop has been harvested. Corn and peanuts were rated in mostly good condition while rice, cotton, sorghum and pastures were rated 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.