Agriculture Market Summary: November 2010

Monday, November 29, 2010

Agriculture Market Recap for 11/29/10

For the week ending Nov. 27, feeder cattle prices at Texas auctions were mostly steady to $5 higher per hundredweight with many locations closed for the Thanksgiving holiday week. The lighter holiday week sales volume and continued good demand helped support the market. Fed cattle prices were higher following increases in wholesale beef prices and reports of tighter supplies of beef in cold storage. Cotton prices were sharply lower amid ongoing concerns that Chinese demand might decline as they take steps to slow down their economy and reduce inflation. As for futures markets, feeder cattle, fed cattle, wheat and corn were higher while cotton and lumber were lower. Much of the state east of Interstate 35 reported light rainfall during the week with accumulations generally less than one-half inch. Other areas recorded little or no rain. With the dry West Texas weather, cotton harvest progressed to 88 percent complete, well ahead of the normal 73 percent by this date. Corn harvest is nearing completion with only a few late fields remaining. Grain sorghum was 97 percent harvested and peanut harvest was 98 percent complete. The winter wheat crop was 95 percent planted and 82 percent of the acreage has emerged. The crop needs rain in many areas. Vegetable and citrus harvests were active in South Texas and the Lower Rio Grande Valley. Crops and pastures were reported in mostly good to fair condition.

* Cash grain prices are for Tuesday prior to the Thanksgiving holiday.

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, November 22, 2010

Agriculture Market Recap for 11/22/10

For the week ending Nov. 20, feeder cattle price trends at Texas auctions were steady to $5 higher per hundredweight, as demand remains good for the available cattle supply. Fed cattle prices were near unchanged from a week ago and wholesale beef prices were higher. Cotton and grain prices were mostly lower to sharply lower for the week amid concerns that exports to Chinese would falter after it took additional steps to slow down its economy. Strong weekly cotton and wheat exports and concerns about dry weather in winter wheat producing areas did little to moderate the decline. As for futures markets, feeder cattle and fed cattle were higher while cotton, wheat, corn and lumber were lower. Little or no precipitation was reported in most areas of the state though parts of East Texas and areas along the Red River recorded a trace to as much as one inch of rain. Cotton harvest progressed to 80 percent complete, well ahead of normal, though high winds on the Southern High Plains did cause some delays. The corn crop was 98 percent harvested and grain sorghum harvest was ahead of normal at 91 percent complete. The winter wheat crop was 94 percent planted and 80 percent of the acreage has emerged. The crop was reported in mostly fair to good condition and needed rain in many areas. In the Lower Valley, citrus and sugarcane harvests were active, and cabbage harvest was progressing well in South Texas. Pastures were reported in mostly fair to poor condition as cooler temperatures and shorter days push grass into dormancy.

Tuesday, November 16, 2010

Agriculture Market Recap for 11/15/10

For the week ending Nov. 13, feeder cattle price trends at Texas auctions were mixed with some locations steady to $5 higher per hundredweight and others steady to $4 lower. Demand remains strong for the available cattle, but volatile feed grain prices applied downward pressure. Fed cattle prices were higher than a week ago and remain well above last year’s levels. Cotton and grain prices were lower to sharply lower after China raised interest rates to slow economic growth and reduce inflation. China is a major destination for global exports and anything that might reduce its demand for commodities has an impact worldwide. As for futures markets, feeder cattle, fed cattle and lumber were higher, while cotton, wheat and corn were lower. Much of the state east of Interstate 35 and north of Interstate 20 reported rainfall with amounts of more than two inches in isolated areas. Little or no rain was reported in other locations. Topsoil moisture was rated in mostly adequate to short supply statewide. Cotton harvest was 68 percent complete with bolls open on 99 percent of the acreage, both ahead of the normal pace. The corn crop was 97 percent harvested and grain sorghum harvest is 90 percent complete. Winter wheat seedings are 90 percent complete and 72 percent of the acreage has emerged, both slightly behind normal. In many areas, the crop needs additional rainfall to boost emergence and growth. Cotton, corn, grain sorghum and peanuts were reported in mostly good to fair condition, while wheat and pastures were rated mostly fair to good.

Monday, November 8, 2010

Agriculture Market Recap for 11/8/10

For the week ending Nov. 6, feeder cattle prices at Texas auctions were mostly steady to $6 higher per hundredweight, though some locations noted lower prices on at least a portion of their offerings. Volatile, higher feed grain prices and a lower fed cattle market contributed to the weakness. Fed cattle prices followed wholesale beef values lower, though both remain well above year-ago levels. Cotton prices were sharply higher because of a weaker dollar, export restrictions by India and reports that China’s crop is smaller than expected. The cheaper dollar, which makes U.S. goods less expensive for foreign buyers, also pushed wheat, corn and grain sorghum prices higher. Wheat received an added boost from concerns that dry weather would hurt the U.S. crop. As for futures markets, feeder cattle, cotton, wheat, corn and lumber were higher, while fed cattle were lower. Areas of the state along and east of Interstate 35 reported rainfall last week, ranging from a trace to more than 5 inches in a few isolated locations. Other parts of the state reported little or no rainfall. Dry weather on the Plains allowed the cotton harvest to progress to 60 percent complete, compared to 38 percent on average by this date in previous years. Corn harvest is nearing completion and the grain sorghum crop is 86 percent harvested. Winter wheat seedings are also nearing completion with 89 percent of the crop planted and 70 percent emerged. In many areas, the wheat crop would benefit from additional rain. Crops were reported in mostly good to fair condition, while pastures were rated mostly fair to good.

Monday, November 1, 2010

Agriculture Market Recap for 11/1/10

For the week ending Oct. 30, feeder cattle prices at Texas auctions were mostly steady to $5 higher per hundredweight in spite of lower futures prices and a decline in fed cattle markets. Demand remains strong for the available supply of feeders as stocker operators book cattle for winter grazing and feedlots try to process replacements while the weather is still favorable. Fed cattle prices declined along with wholesale beef prices, but remain well above year-ago levels. Cotton and grain prices were higher as a weaker dollar made U.S. goods cheaper for foreign buyers. Cotton received an added boost from continued strong global demand and slow deliveries by growers in India. Grains also benefitted from uncertainties about the size of this year’s U.S. corn crop. 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 less than an inch of rain recorded in parts of the Upper Panhandle and East Texas. Topsoil moisture was reported to be in mostly adequate to short supply, with very short conditions persisting in East Texas. Cotton harvest progressed to 45 percent complete, well ahead of normal, and bolls are opening on 97 percent of the acreage. Corn harvest is nearing completion and grain sorghum is 80 percent harvested, both slightly ahead of normal. Peanut harvest is 78 percent complete, compared to 54 percent on average by this date. Winter wheat seedings are 85 percent complete, slightly ahead of normal. Crops were rated in mostly good to fair condition while pastures were reported fair to good.