Agriculture Market Summary: May 2012

Wednesday, May 30, 2012

Agricultural Market Summary for May 30, 2012

For the week ending May 26, feeder cattle prices at the Texas auctions covered by USDA Market News were mostly steady to $6 higher per hundredweight (cwt), with a few to $10 higher and some steady to $3 lower on heifer calves. The Texas direct feeder cattle trade was $2 to $5 higher, with the largest increases noted on cattle weighing 800 pounds or more. The Oklahoma City auction was mostly $2 to $6 higher. Fed cattle cash prices declined by more than $2 per cwt due to weaker packer demand ahead of a workweek shortened by the Memorial Day holiday. Cotton cash prices were again lower as large world supplies continue to burden the market. A favorable export sales report helped ease concerns that China will limit purchases, but there were also rumors that it was preparing to sell cotton in storage to free-up warehouse space. Grain prices were lower mostly due to pressure from outside market factors, including a stronger dollar, weaker equity markets and concerns about the European economy. Corn and grain sorghum prices were also pressured by weak exports, but losses were limited by dry, warm and windy conditions in the Corn Belt. Wheat prices were also impacted by improved exports and increasing harvest-time supplies. As for futures markets, feeder cattle and lumber were higher, while fed cattle, cotton, wheat and corn were lower. Parts of southeast Texas and much of West Texas west of a line from Eagle Pass to Wichita Falls recorded rainfall last week with amounts generally one-half inch or less. The weekly USDA NASS "Texas Crop Progress and Condition" report showed that 96% of the state's corn acreage has been planted and 83% has emerged, both slightly behind the average for this date. Condition was rated good to fair, with an overall condition index of 81 points, compared to only 53 a year ago. Grain sorghum is 90% planted and 50% headed, both much ahead of normal, with the crop in mostly good to fair condition. The state's wheat crop was 99% headed and 27% of the acreage intended for grain has been harvested, both ahead of the normal pace. The crop is rated in mostly fair to good condition, though more than one-third of the acreage is rated poor and very poor. The condition index is 55, lower than any other Texas crop, but still well above the 26 points at this time last year. Cotton planting is 69% complete and 12% of the crop is squaring, both ahead of normal. The state's cotton acreage is rated in mostly fair to good condition, with 16% excellent, only 2% poor and none very poor. The condition index was 79 compared to 57 a year ago. Pastures were rated mostly fair to good with many needing rain. The report noted that livestock condition was generally good, but that some supplemental feed was needed in South Texas.

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, May 22, 2012

Agricultural Market Summary May 22, 2012

For the week ending May 19, feeder cattle prices at the Texas auctions covered by USDA Market News were mostly steady to $2 higher per hundredweight (cwt), with a few to $5 higher. The Texas direct feeder cattle trade was mostly steady to $4 higher, with the largest increases noted on cattle weighing 800 pounds or more. The Oklahoma City auction was steady to $2 higher. Fed cattle cash prices were almost $3 higher per cwt following increases in beef prices and supportive futures markets. Cotton cash prices were lower due to large world supplies, beneficial rains in parts of the Cotton Belt and news that China, our largest cotton trade partner, intends to limit imports. Corn and grain sorghum prices were higher on news of large Chinese purchases and concerns about dry weather in parts of the Corn Belt. Wheat prices were higher as strong export sales and reports of dry conditions in Kansas and the Black Sea region in Europe offset large current world supplies. As for futures markets, feeder cattle, fed cattle, wheat and corn were higher, while cotton and lumber were lower. Much of the state recorded rainfall last week with the heaviest amounts in east-central Texas, the western Panhandle and along the Rio Grande River from Rio Grande City to Del Rio and then north through Monahans. Winter wheat was rated in mostly fair to good condition with 99 percent of the acreage headed and 11 percent harvested for grain, both ahead of normal. Rains once again delayed harvest in parts of Central Texas. Corn was 95 percent planted, slightly behind the 96 percent average, and 82 percent was emerged. The crop was rated in mostly good to fair condition. Grain sorghum planting was ahead of normal at 89 percent complete and 26 percent of the crop was headed. Cotton planting was 49 percent complete, well ahead of the normal 41 percent. Rice planting was nearing completion and peanut planting was ahead of normal at 78 percent complete. Pastures were rated in mostly fair to good condition, but still need rain in some areas.

Tuesday, May 15, 2012

Agricultural Market Summary May 15, 2012

For the week ending May 12, feeder cattle prices at the Texas Panhandle auctions covered by USDA Market News were mixed from $2 lower to $3 higher per hundredweight (cwt), depending on location, weight and quality of the offerings. The Texas direct feeder cattle trade was mostly steady to $4 higher on offerings weighing less than 800 pounds, while heavier weights were weak to $3 lower. The Oklahoma City auction on Monday was $1 to $3 higher. Fed cattle cash prices were near unchanged from the previous week and beef prices were lower. Cotton cash prices were flat early in the week and then dropped 7 cents per pound on Thursday and Friday following beneficial rains in Texas and a USDA supply and demand report showing higher domestic supplies and projected record-high ending world stocks. Corn and grain sorghum prices were higher at the beginning of the week because of tight current supplies, but then fell after USDA released projections for record-high U.S. and world production. Wheat prices were lower on projections for a larger U.S. crop. As for futures markets, feeder cattle, fed cattle, cotton, wheat and corn were lower, while lumber was higher. Most of the state recorded rainfall last week with the heaviest amounts in East Texas and south of a line from Beaumont to Lamesa. Winter wheat was rated in mostly fair to good condition with 98 percent of the acreage headed and harvest underway in many areas. On the High Plains, irrigated wheat was in good condition while dryland acres needed rain. Rain delayed harvest in parts of North Texas. Corn was 93 percent planted and 80 percent was emerged, both ahead of normal progress, with condition rated mostly good to fair. Grain sorghum planting was ahead of normal at 88 percent complete and 16 percent of the crop was headed. Cotton planting was 35 percent complete, ahead of the normal 31 percent. Rice and peanut planting were 94 percent and 58 percent planted, respectively. Pastures were rated in mostly fair to good condition thanks to recent rains, but remain dry in areas of the Plains.

Tuesday, May 8, 2012

Agricultural Market Summary May 8, 2012

For the week ending May 5, feeder cattle prices at the Texas Panhandle auctions covered by USDA Market News were steady to $8 higher per hundredweight (cwt), while San Angelo was steady to $2 lower. The Texas direct feeder cattle trade was mostly steady to $3 lower early in the week, but steady to $2 higher later as markets recovered from the limited effects of the California BSE case. The Oklahoma City auction on Monday was $2 to $8 lower on feeder cattle and steady to $4 lower on calves. Fed cattle cash prices were $1 higher per cwt as markets recovered from the previous week’s BSE announcement. Beef prices were near unchanged for the week. Cotton cash prices were lower due to large world stocks, a weak global economy, beneficial rains in parts of Texas and renewed exports by India. Grain prices were lower for the week on global economic weakness and a stronger dollar. In addition, participants in the Kansas hard red winter wheat tour came up with a higher yield estimate, which offset a “decent” export sales report. Corn and grain sorghum were lower as the rapid planting progress of this year’s crop increased the chances for a larger U.S. crop, but the decline was limited by stronger export sales and tight current supplies. As for futures markets, feeder cattle, corn and lumber were higher, but fed cattle, cotton and wheat lower. Rainfall was recorded in a broad swath of the state from Laredo to Columbus and north through the High Plains, with the heaviest amounts in South-Central Texas. Winter wheat was rated in mostly fair to good condition, but stressed in some areas by a lack of moisture. The crop is maturing quickly due to the warm, dry weather. A few early fields were harvested. Wheat is 92 percent headed, well ahead of the 68 percent on average by this date. Corn was 75 percent planted and 60 percent was emerged, both 5 percentage points behind normal, with condition rated mostly good to fair. Grain sorghum planting was ahead of normal at 70 percent complete. Cotton planting was 27 percent complete, slightly ahead of the normal 25 percent. Rice was 93 percent planted. Pastures statewide need rain and were rated in mostly good to poor condition.

Tuesday, May 1, 2012

Agricultural Market Summary May 1, 2012

For the week ending April 28, feeder cattle price trends at Texas auctions covered by USDA Market News were mostly $2 to $7 lower per hundredweight (cwt). Those sales were held late in the week, after USDA confirmed a case of BSE in a California dairy cow. The Texas direct feeder cattle trade was mostly steady to $2 higher early in the week, but steady to $3 lower later in the week after the BSE report. Prices at Oklahoma City auction on Monday were steady to $2 higher. Fed cattle cash prices were $2.34 lower per cwt compared to the previous week amid concerns about future demand. Beef prices climbed early in the week and then also dipped lower after the BSE announcement, but still managed to end the week higher than the previous Friday. Cotton cash prices were unchanged as large world stocks and an upward revision in Chinese production estimates were offset by an improved export sales report and dry conditions in West Texas and Georgia. Grain prices were higher for the week. Corn and grain sorghum increased on strong corn export sales, including a large purchase by China late in the week. Wheat exports were also better than in previous weeks. There were also concerns about cold weather in northern areas and dry conditions in parts of Texas. As for futures markets, wheat, corn and lumber were higher, but feeder cattle, fed cattle and cotton were lower. Parts of the Panhandle and Southern Plains recorded a half-inch or less of rain with some isolated totals of an inch or more. The rest of the state reported little or no precipitation during the week. Winter wheat was rated in mostly fair to good condition, but stressed in some areas by a lack of moisture and maturing quickly due to the warm, dry weather. The crop is 82 percent headed, well ahead of the 54 percent on average by this date. Corn was 70 percent planted and 58 percent was emerged, both slightly behind normal, with conditions rated mostly good to fair. Grain sorghum planting was ahead of normal at 65 percent complete. Cotton planting was 25 percent complete, ahead of the normal 20 percent. Rice was 89 percent planted. Pastures in much of the state need rain and were rated in mostly fair to good condition.