Agricultural Market Summary March 20, 2012

Feeder cattle prices at Texas auctions covered by USDA Market News were steady to $2 higher per hundredweight (cwt), with heifers over 700 pounds steady to $2 lower at one location. Texas feeder cattle sales direct to feedlots were mostly steady to $2 lower on cattle weighing more than 800 pounds and firm on lighter weights. Oklahoma City was mostly lower early in the session before turning higher later in the day.  Fed cattle cash prices were down by about 50 cents per cwt from the previous week following continued declines in beef values.

Cotton cash prices declined after India rescinded its ban on cotton exports, though considerable uncertainty remained about when actual shipments would resume. Corn and grain sorghum prices were higher due to speculation about corn sales to China and continued tight domestic supplies. There were also concerns that higher soybean prices relative to corn would pull additional acreage from corn into soybeans and thus further restrict supplies. Wheat prices were higher amid worries that warm temperatures on the U.S. southern plains are causing winter wheat to break dormancy early, leaving the crop vulnerable to moisture stress and a late freeze. As for futures markets, wheat and corn were higher, but feeder cattle, fed cattle, cotton and lumber were lower.

Parts of the Trans-Pecos region and an area east of a line from Brazoria to La Grange to Paris recorded a half-inch or more of rain while little or no rainfall was recorded elsewhere in the state. Winter wheat remained in mostly good to poor condition as rainfall and warmer temperatures helped boost the crop in may areas, though wheat on the High Plains needs additional moisture. Corn and grain sorghum planting continued with wet weather causing some interruptions in the Blacklands region. Corn was 33 percent planted, compared to 37 percent on average for this date. Grain sorghum was 22 percent planted, compared to 29 percent on average. Cotton planting is underway in the Lower Valley. Pastures have benefitted from recent rains and warmer temperatures, but many still need additional moisture. 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, www.TexasAgriculture.gov.