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.

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/.