Agriculture Market Summary: October 2010

Monday, October 25, 2010

Agriculture Market Recap for 10/25/10

For the week ending Oct. 23, feeder cattle prices at Texas auctions were mostly steady to $6 higher per hundredweight with a few to $2 lower and some to $10 higher. A sharp increase in fed cattle prices helped push feeder markets higher. Fed cattle were up nearly $5 per hundredweight following recent increases in wholesale beef prices and stiff competition for the available cattle supply. Cotton prices were much higher as predictions for a smaller Chinese crop threatened to further tighten supplies and a weak dollar made U.S. cotton cheaper for foreign buyers. Grain prices ended the week mostly lower as demand slipped due to recently higher prices. As for futures markets, feeder cattle, fed cattle and cotton were higher, while wheat, corn and lumber were lower. Much of the state recorded little or no rainfall last week, though locally heavy amounts in excess of two inches were reported in parts of West Texas, the High Plains and Northeast Texas. Some hail damage was reported from storms on the Southern Plains. Topsoil moisture was rated mostly short to adequate. Cotton harvest progressed to 37 percent complete and bolls were opening on 96 percent of the acreage, both well ahead of the normal pace. Corn was 93 percent harvested, and the grain sorghum harvest was 79 percent complete, both slightly ahead of average. Winter wheat seedings were 81 percent complete and 49 percent of the acreage has emerged, well behind normal. The crop needs rain in many areas to boost emergence and growth. Cotton, corn, grain sorghum, peanuts, wheat and pastures were reported in mostly good to fair condition statewide.

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.

Monday, October 18, 2010

Agriculture Market Recap for 10/18/10

For the week ending Oct. 16, feeder cattle prices at Texas auctions were mostly $2 to $5 lower per hundredweight compared to the previous week with some down as much as $8. A few locations noted prices $1 to $4 higher on a limited number of sales. Prices have declined seasonally, but remain higher than this time last year. The fed cattle market followed wholesale beef prices higher. Cotton prices were higher amid strong export sales, a weaker dollar and improved domestic demand. Corn and grain sorghum prices continued to rise in response to USDA forecasts for a smaller U.S. crop. Wheat declined as ample global supplies pressured the market. As for futures markets, feeder cattle, fed cattle, cotton, corn and lumber were higher while wheat was lower. Most of the state recorded little or no rainfall during the week, though parts of East Texas reported as much as two inches of rain with higher amounts in isolated areas. Topsoil moisture was rated mostly short to adequate statewide with very short moisture reported in much of the Plains and East Texas. Cotton harvest progressed to 26 percent complete and bolls were opening on 92 percent of the acreage, both ahead of the normal pace. Corn was 89 percent harvested and 99 percent mature. Grain sorghum was 74 percent harvested, equal to the average pace, and 94 percent mature, well ahead of normal. Winter wheat seedings advanced to 73 percent complete, slightly ahead of normal, and 41 percent of the acreage has emerged. Cotton, corn, grain sorghum, peanuts and pastures were reported in mostly good to fair condition.

Monday, October 11, 2010

Agriculture Market Recap for 10/11/10

For the week ending Oct. 9, feeder cattle prices at Texas auctions were mostly steady to $3 higher per hundredweight, though some reported prices to $10 higher and some to $7 lower. Markets remain under pressure from seasonal increases in the number of young calves coming to market while overall tight feeder cattle supplies continue to hold prices well above year-ago levels. Fed cattle prices were $2 lower following declines in wholesale beef prices. Cotton and grain prices were sharply higher for the week after USDA released its monthly crop production and supply and demand reports on Friday. Cotton prices were higher after USDA lowered its production estimate for China and reduced projected exports from India. Corn and grain sorghum prices were sharply higher as the U.S. corn production forecast was reduced by 4 percent and grain sorghum by 10 percent from previous forecasts. Wheat followed other grains higher. As for futures markets, cotton, wheat, corn and lumber were higher while feeder cattle and fed cattle were lower. Most of the state reported little or no rainfall during the week with the heaviest amounts of up to two inches recorded from the Dallas-Fort Worth area north to the border. No crop progress information is available for this week because the office that provides that report is closed for the federal Columbus Day holiday.

Monday, October 4, 2010

Agriculture Market Recap for 10/4/10

For the week ending Oct. 2, feeder cattle prices at Texas auctions were mixed, with most early week auctions steady to $5 lower per hundredweight and sales later in the week mostly steady to $4 higher. Seasonally higher calf numbers continued to pressure markets while lower feed grain prices allowed buyers some room to increase bids. Fed cattle prices were lower following a decline in wholesale beef prices. Cotton prices were higher on news of a smaller Chinese crop and strong export sales. Corn prices were lower after USDA reported more in storage than expected, easing concerns about supplies this fall. Wheat prices were lower because of weak export sales and beneficial rains in Russia. As for futures markets, feeder cattle were higher while fed cattle, cotton, wheat, corn and lumber were lower. Most of the state recorded little or no rainfall during the week with an inch or less reported in South Texas from Brownsville to Del Rio and on parts of the High Plains. Topsoil moisture remains mostly adequate to short with the driest conditions reported in East Texas and surplus moisture noted in parts of South Texas and the Upper Coast. Cotton, corn and grain sorghum harvests remain behind their normal pace. Cotton harvest progressed to 16 percent complete statewide and is just getting under way on the Southern High Plains. Bolls were opening on 80 percent of the acreage. Corn harvest was 68 percent complete and 92 percent of the acreage was mature. Grain sorghum was 61 percent harvested. Winter wheat seedings were ahead of normal at 54 percent complete. Cotton, corn, grain sorghum and soybeans were reported in mostly good to fair conditions while peanuts were reported mostly good to excellent.

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