Agriculture Market Summary: February 2012

Tuesday, February 28, 2012

Agricultural Market Summary for Feb, 28, 2012

Feeder cattle prices at Texas auctions covered by USDA Market News were mostly steady with a few to $2 lower per hundredweight and a few to $5 higher. Texas feeder sales direct to feedlots were $1 to $4 higher with some as much as $6 higher. Oklahoma City was $2 to $5 higher on feeder cattle and $4 to $10 higher on calves. Fed cattle cash prices were near unchanged from last week’s record high. Wholesale Choice boxed beef prices were up 3.7 percent for the week, which helped packers reduce their losses, though margins remain negative according to most sources. Cotton cash prices were lower for the week amid concerns about demand and in spite of forecasts for lower U.S. planted acreage in 2012. More favorable exports and increased end-user buying helped prices recover somewhat on Friday. Corn and grain sorghum prices were unchanged to lower after USDA updated projections calling for increased planted acreage and lower prices in 2012. Wheat prices declined on updated USDA projections for increased U.S. production and higher carryover stocks. However, losses were limited by a better-than-expected weekly export sales report. As for futures markets, feeder cattle, fed cattle, cotton, wheat and corn were lower, while lumber was higher. Most of South Texas, the Gulf Coast, northeast Texas and parts of the Panhandle recorded precipitation during the week while the rest of the state remained dry. Winter wheat was reported in mostly good to poor condition with the High Plains crop in need of additional moisture. Field preparations for spring planting continued statewide while corn and grain sorghum planting is getting started in South Texas. Winter vegetable harvest progressed in South Texas, but was delayed by wet fields in the Lower Valley. Pastures have benefitted from recent rains, but still need additional moisture, especially in West Texas. Pastures statewide remain in mostly fair to very poor condition.

All cash prices above are market averages for locations covered by the USDA 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 at the Oklahoma City National Stockyards. Futures prices are quoted for the nearest month contract on the last trading day of the week. For additional information, contact TDA at (800) 835-5832 or visit our website, http://www.texasagriculture.gov/.

Tuesday, February 21, 2012

Agricultural Market Summary Feb. 22, 2012

For the week, feeder cattle prices at Texas auctions covered by USDA Market News were mostly steady to $4 higher per hundredweight (cwt). Texas direct feeder sales were steady to $1 higher and Oklahoma City was $1 to $4 higher on feeder cattle and steady to $8 lower on calves with steers posting the biggest losses. Fed cattle cash prices surged to a new record high $129 per cwt. on more than 16,000 head. Higher wholesale beef prices allowed packers to increase bids for the available cattle. [However, those higher beef prices have not translated into a healthier bottom line for packers as beef increases have not kept up with rising input costs. Reports early this week indicated that packer margins slipped deeper into the red last week in spite of those higher boxed beef values, with losses near $80 per head.] The head count was still well below year-ago levels, but higher than in the past several weeks.

Cotton cash prices ended the week higher after the weekly export sales report showed net purchases of 108,000 bales, which was an improvement over the cancellations and negative sales of the previous weeks. Corn and grain sorghum prices were higher on continued tight domestic supplies and a new export sale to South Korea. Wheat prices increased after a sale to Egypt and news of possible export restrictions by the Ukraine. As for futures markets, feeder cattle, fed cattle, cotton, wheat and corn were higher, while lumber was lower.

Most of the state except for parts of far west Texas recorded precipitation during the week, with the heaviest amounts reported in Central and East Texas. Totals exceeded five inches in some locations. Topsoil moisture remained in short to very short supply over much of West Texas. Other areas saw conditions improve following recent rains with expanded areas reporting adequate to surplus conditions, especially in East Texas and along the upper coast. Winter wheat was reported in mostly good to poor condition with the High Plains crop in need of additional moisture. Field preparations for spring planting continued statewide. Winter vegetable harvest progressed. Pastures from East Texas to the Lower Rio Grande Valley benefited from recent rains while West Texas pasture and range continued to suffer from dry conditions. Statewide, pastures remain in mostly fair to very poor condition.

Tuesday, February 14, 2012

Agricultural Market Summary Feb 14, 2012

Feeder cattle prices last week at Texas auctions covered by USDA Market News were mostly steady to $5 higher per hundredweight, with a few to $10 higher and some to $10 lower. Texas direct feeder sales were $1 to $3 higher. Oklahoma City was mostly steady on feeder cattle and steady to $8 higher on calves with steers posting the biggest gains. Fed cattle cash prices were unchanged from a week ago in moderate trade as packers continue to limit purchases and cut slaughter rates in response to stagnant beef prices and ongoing negative margins. Cotton and grain prices ended the week lower after USDA reported larger than expected world supplies, a stronger dollar and continued concerns that the European debt crisis will stifle demand. However, losses were limited due to tight domestic grain supplies, ongoing concerns about South American crops and worries that cold weather in Eastern Europe may have damaged their winter wheat. As for futures markets, lumber was higher, while feeder cattle, fed cattle, cotton, wheat and corn were lower. Most of the state east of the Pecos recorded precipitation during the week, with the heaviest amounts in South and Southeast Texas. Topsoil moisture remained in short to very short supply in much of west and south Texas, while the remainder of the state was mostly short to adequate. Some areas of surplus moisture were again reported, mostly in the Blacklands region and in East Texas. Winter wheat was 98 percent emerged and in mostly good to poor condition. Preparations for spring planting are underway in many areas. Winter vegetable harvest is progressing. Pastures were rated in mostly fair to very poor condition.

Tuesday, February 7, 2012

Agricultural Market Summary Feb. 6, 2012

Feeder cattle prices at Texas auctions covered by USDA Market News were steady to $5 higher per hundredweight, with a few to $10 higher. Texas direct feeder sales were steady to $2 higher. Oklahoma City was mostly steady to $2 higher on feeder cattle and $3 to $6 higher on calves. Heifer calves posted the biggest gains at many locations as feeder and replacement buyers competed for the limited offerings. Fed cattle cash prices were $1 lower in moderate trade as packers continue to limit purchases and cut slaughter rates in response to stagnant beef prices and ongoing negative margins. Cotton prices were higher following strong export shipments, prospects for increased Chinese purchases and moves by Pakistan to boost its domestic prices. Corn and grain sorghum were higher amid ongoing concerns about South American crops and tight domestic supplies. Wheat prices were higher on concerns that cold weather damaged the crop in Europe and reports of possible Russian export restrictions. However, the market retreated somewhat late in the week after Russia said it had no plans to limit exports. As for futures markets, cotton, wheat, corn and lumber were higher, while feeder cattle and fed cattle were lower. The eastern half of the state and the Panhandle saw precipitation during the week with the heaviest amounts east of a line from Laredo to Dallas. Topsoil moisture remained in short to very short supply in much of west and south Texas while the remainder of the state was mostly short to adequate. Some areas of surplus moisture were reported, mostly in the Blacklands region and in East Texas. Winter wheat was 97 percent emerged and in mostly good to poor condition. Preparations for spring planting are underway in many areas. Winter vegetable harvest is progressing. Pastures were rated in mostly fair to very poor condition, though recent rains and warm temperatures have helped winter grasses.