Agriculture Market Summary: June 2011

Monday, June 27, 2011

Agriculture Market Recap for the week ending June 25

Feeder cattle prices at Texas auctions were mostly $5 to $7 higher per hundredweight, with some to $10 higher. Lower feed grain prices and higher fed cattle contributed to the increase. Fed cattle prices were $4 higher following increases in wholesale beef prices and as processors built up inventories ahead of the July 4 weekend. Cotton cash prices were near unchanged amid weak exports and declining prospects for this year’s crop. Wheat prices were lower as supplies from this year’s harvest increased. Corn declined on more favorable weather in the Midwest. As for futures markets, feeder cattle, fed cattle, cotton and lumber were higher while wheat and corn were lower. Most of the state south and east of a line from Presidio to Wichita Falls recorded rainfall during the week with amounts ranging from a trace to more than 5 inches. Topsoil moisture remained in mostly very short to short supply statewide. Wheat harvest was 89 percent complete, well ahead of the normal 68 percent with the crop rated in mostly very poor to poor condition. Corn was 59 percent silked and 41 percent was in dough stage. Grain sorghum planting was 92 percent complete and 68 percent of the crop is headed. The cotton crop was 99 percent planted and 13 percent of the acreage is setting bolls. Most crops were rated in fair to very poor condition with condition indexes well below where they were at this time last year. Pastures remain in mostly very poor to poor condition as supplemental feeding and reductions of livestock herds continue.

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, June 20, 2011

Agriculture Market Recap for the week ending June 18

Feeder cattle price trends at Texas auctions were again mixed, from $10 lower to $6 higher per hundredweight. The hot, dry weather, poor pasture conditions, tight cattle supplies, higher fed cattle markets and lower grain prices were again the primary market factors. Fed cattle prices were $3 higher following increases in wholesale beef prices. Cotton cash prices were again lower due to weak export sales. Wheat prices were lower as supplies from this year’s harvest increased. Corn declined on more favorable weather in the Midwest. As for futures markets, feeder cattle and fed cattle were higher while cotton, wheat, corn and lumber were lower. Very little rainfall was recorded in the state last week with only a few scattered showers reported north and west of a line from Presidio to Texarkana. Topsoil moisture was reported in mostly short to very short supply statewide. Wheat harvest was 71 percent complete, well ahead of the normal 51 percent with the crop rated in mostly very poor to poor condition. Corn was 58 percent silked. Grain sorghum planting was 87 percent complete and 67 percent of the crop is headed. The cotton crop is 97 percent planted and 12 percent of the acreage is setting bolls, both ahead of normal. Most crops were rated in fair to very poor condition with condition indexes well below where they were at this time last year. Pastures remain in mostly very poor to poor condition as supplemental feeding and reductions of livestock herds continue.

Monday, June 13, 2011

Agriculture Market Recap for the week ending June 11

Feeder cattle price trends at Texas auctions were mixed, from $5 lower to $5 higher per hundredweight. The hot, dry weather, poor pasture conditions, tight cattle supplies, modestly higher fed cattle markets and fluctuating grain prices were again the primary influences on markets. Fed cattle prices were $1 higher as sellers were able to capture some of the recent increase in packer margins. Cotton cash prices were lower due to weak export sales. Wheat prices declined as harvest of this year’s crop increased supplies. Corn prices were higher after USDA released projections for tighter-than-expected carryover from the 2011 crop. As for futures markets, corn was higher while feeder cattle, fed cattle, cotton, wheat and lumber were lower. Very little rainfall was recorded in the state last week with amounts mostly less than one-half inch reported in parts of East Texas and the Low Plains. Topsoil moisture was reported to be in mostly short to very short supply statewide. Wheat harvest progressed to 46 percent complete, well ahead of the normal 35 percent with the crop rated in mostly very poor to poor condition. Corn planting was completed and 51 percent of the acreage is silking. Grain sorghum was 86 percent planted and 66 percent of the crop is headed. The cotton crop is 94 percent planted and 11 percent of the acreage is setting bolls, both ahead of normal. Most crops were rated in fair to very poor condition with condition indexes well below where they were at this time last year. Pastures remain in mostly very poor to poor condition as supplemental feeding and reductions of livestock herds continue.

Monday, June 6, 2011

Agriculture Market Recap for the week ending June 4

Feeder cattle price trends at Texas auctions were mixed, from $6 lower to $5 higher. Poor pasture conditions, tight cattle supplies, steady fed cattle markets and fluctuating grain prices were again the primary influences on markets. Fed cattle prices were unchanged. Cotton prices increased because of ongoing concerns that drought in Texas and other parts of the Cotton Belt will reduce 2011 production. Grain prices declined early in the week after Russia announced it intends to resume wheat exports after July 1. Prices rebounded later in the week because of dry conditions in winter wheat areas and planting delays in the eastern Corn Belt. As for futures markets, feeder cattle, fed cattle and cotton were higher, while wheat, corn and lumber were lower. Very little rainfall was recorded anywhere in the state during the week with amounts mostly less than one-half inch in parts of northeast Texas, the Panhandle and far West Texas. Topsoil moisture was rated mostly short to very short, though adequate moisture was noted in areas that have received recent rains. Winter wheat harvest was slightly ahead of normal at 24 percent complete with the crop rated in mostly very poor to poor condition. Cotton was 83 percent planted, with 12 percent squaring and 7 percent setting bolls. Corn planting was nearing completion and 39 percent was silking. Grain sorghum was 77 percent planted and 51 percent of the acreage was headed. Cotton, corn, grain sorghum and peanuts were rated in mostly fair condition. Pastures were rated in mostly very poor to poor condition with supplemental feeding and culling of herds necessary in many areas due to the deepening drought.

Thursday, June 2, 2011

Agriculture Market Recap for the week ending May 28

Feeder cattle price trends at Texas auctions were mixed, from $10 lower to $6 higher. Poor pasture conditions, tight supplies, lower fed cattle markets and fluctuating grain prices were again the primary influences on markets. Fed cattle prices were lower. Cotton prices were lower as export demand continues to falter. Corn and grain sorghum were higher because of continued planting delays in the eastern Corn Belt, while drought on the Great Plains and spring wheat planting delays pushed wheat prices higher. As for futures markets, feeder cattle, fed cattle, cotton and corn were lower while wheat and lumber were higher. Parts of southeast and north-central Texas reported an inch or more of rain, but most of the state recorded little or no rainfall during the week. Topsoil moisture was rated adequate to short in parts of the Blacklands and Northeast Texas, and short to very short elsewhere. By week’s end, wheat was 99 percent headed and 19 percent harvested, both ahead of normal. Cotton was 65 percent planted, slightly behind normal, and 11 percent was squaring. Corn is 98 percent planted and 36 percent of the acreage is silking. Grain sorghum is 78 percent planted and 50 percent of the crop has headed. Corn, cotton, rice and grain sorghum were rated in mostly fair to good condition, while pastures were mostly poor to very poor.