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.
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.