Agriculture Market Summary June 19, 2012

For the week ending June 16, feeder cattle price trends at Texas auctions were mixed, ranging from $6 lower to $6 higher per hundredweight (cwt). Lower cattle futures, dry pastures, variable quality and lower prices for fed cattle offset the seasonally smaller supplies and the impacts of a smaller cow herd. The Texas direct feeder cattle trade was steady to $2 higher. The Oklahoma City auction was mostly steady on feeder cattle and steady to $3 lower on calves. Fed cattle cash prices were $3 lower, while beef values were mixed, with Choice beef prices higher and Select-grade offerings lower. Cotton prices were higher following a favorable weekly export sales report and supportive outside markets, including a weaker dollar, higher crude oil and higher stock markets. Corn and grain sorghum were lower due to forecasts for more favorable growing conditions in the Midwest, weak ethanol margins and speculation that corn acreage might be higher than current USDA projections. Wheat prices followed other grains lower as the advancing winter wheat harvest added to supplies, though stronger export sales helped limit losses. As for futures markets, cotton was higher while feeder cattle, fed cattle, wheat, corn and lumber were lower. Most of the state except southwest Texas recorded rainfall during the week, with amounts in excess of two inches in parts of East Texas, the Edwards Plateau, West Texas and the Panhandle. The weekly USDA NASS crop progress and condition report showed corn planting has been completed and 60 percent of the acreage is silking, ahead of the 53 percent average for this date. Condition was rated mostly good to fair. Grain sorghum was 93 percent planted, 60 percent headed and 14 percent mature, all ahead of normal, with the crop in mostly good to fair condition. The state’s wheat crop was 74 percent harvested, much above the 46 percent average for this date. The crop was rated in mostly good to poor condition. Cotton planting was ahead of normal at 97 percent complete, and 15 percent of the crop is squaring. The state’s cotton acreage was rated in mostly fair to good condition. Pastures continued to improve slowly in areas that received rain and remain in mostly good to poor condition statewide. 

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/.