Agricultural Market Summary March 13, 2012

For the week ending March 10, feeder cattle prices at Texas auctions covered by USDA Market News were steady to $2 lower per hundredweight (cwt) at Panhandle locations, and firm to $2 higher at San Angelo. Tulia noted a larger volume of heavier cattle coming off wheat pastures. Texas feeder sales direct to feedlots were steady to weak, while Oklahoma City was steady to $3 higher on feeder cattle, and $1 to $8 higher on calves. Fed cattle cash prices were down by more than $3 per cwt from the previous week’s record high following a drop in Choice beef values. Cotton cash prices jumped sharply higher early in the week after India announced a ban on cotton exports, including shipments of cotton already sold. Prices declined somewhat, but still closed higher for the week, after India said it would allow sales of yarn and shipments of cotton already sold.  Corn and grain sorghum prices were lower mostly because of a stronger dollar, concerns about the broader economy and higher production in Brazil. Wheat prices declined due to improved weather in U.S. growing areas, ample world supplies and higher production in Australia. As for futures markets, cotton and lumber were higher while feeder cattle, fed cattle, wheat and corn were lower. Most of the state recorded precipitation during the week except for the Trans-Pecos, parts of South Texas and the southwestern Panhandle. The heaviest amounts of rain fell in an area between Ft. Worth and Wichita Falls. Winter wheat remained in mostly good to poor condition with much of the High Plains crop stressed by a lack of moisture. Corn and grain sorghum planting continued, though wet fields caused delays in East Texas and the Blacklands. Some corn has emerged in South Texas. Field preparations continued statewide. Winter vegetable harvest progressed in South Texas. Pastures have benefitted from recent rains and warmer temperatures, but still need additional moisture, especially in West Texas. Overall, pastures statewide remain in good 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/.