Agriculture Market Summary: July 2012

Tuesday, July 31, 2012

Agriculture Market Summary July 31, 2012

For the week ending July 28, feeder cattle prices at Texas auctions were generally steady to as much as $12 higher per hundredweight (cwt), though a few locations noted lower prices, especially on fleshy, unweaned calves. Texas direct feeder cattle sales and the Oklahoma City National Stockyards were steady to $3 lower. Tight supplies, higher futures markets and a dip in grain prices contributed to the higher prices, though negative cattle feeding margins limited the increase. The fed cattle cash trade was $1.33 higher per cwt and wholesale beef prices were flat for most of the week before declining on Friday. Cotton prices ended the week modestly higher amid concerns about hot, dry weather in West Texas and unfavorable growing conditions in India. Grain prices were lower through mid-week due to weak export demand and hopes for improved weather in the Corn Belt. Prices rebounded later as the hot, dry conditions in the Midwest continued and private forecasts called for lower production in the Corn Belt. As for futures markets, feeder cattle and fed cattle were higher, but cotton, wheat, corn and lumber were lower. Scattered showers fell over much of the state during the week with some locations in East, South and West Texas recording an inch or more of rainfall. According to the weekly USDA NASS crop progress and condition report, the condition index for cotton was 59 points, down from 62 points a week ago, with 92 percent of the acreage squaring and 48 percent setting bolls, both ahead of normal. The corn condition index was 71, down 2 points from last week, with 93 percent of the crop tasseled and an above-normal 17 percent of the acreage harvested. Grain sorghum was 81 percent headed and 53 percent of the crop has been harvested, both ahead of normal. The condition index was 70 points compared to 69 a week ago. The condition index for peanuts improved to 76 points, up 1 point from last week. Rice harvest is 3 percent complete, with a condition index of 86, up 5 points from a week ago. Pasture and hay conditions varied considerably across the state depending on rainfall. Statewide, conditions declined somewhat with 22 percent of the pasture acreage rated in good to excellent condition; 44 percent was rated poor to very poor; and 34 percent was rated in fair 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/.

Tuesday, July 24, 2012

Agriculture Market Summary July 24, 2012

For the week ending July 21, feeder cattle prices at Texas auctions were mostly $3 to $15 lower per hundredweight (cwt) early in the week and steady to $7 lower later. Texas feeder cattle sales directly to stocker operations and feedlots were $2 to $4 lower. At the Oklahoma City National Stockyards, feeder cattle were $6 to $10 lower. Higher grain prices, lower fed cattle, hot temperatures and poor pasture conditions all contributed to the decline. The fed cattle cash trade was $1.65 lower per cwt following a drop in wholesale beef prices. Cotton prices ended the week modestly higher amid concerns about hot, dry weather in West Texas and unfavorable growing conditions in India and Pakistan. The expanding drought and unusually hot weather in the U.S. Corn Belt continued to drive corn, grain sorghum and wheat higher. As for futures markets, fed cattle, cotton, wheat, corn, cotton and lumber were higher, but feeder cattle were lower. Much of the state recorded rainfall during the week ranging from a few hundredths of an inch in many areas to some locally heavy totals of an inch or more. The weekly USDA NASS crop progress and condition report showed crops in mostly fair to good condition across the state. The overall condition index for cotton was 62 points, up from 61 a week ago, with 87 percent of the acreage squaring and 35 percent setting bolls, both ahead of normal for this date. The corn condition index was 73, down 2 points from last week, with 88 percent of the crop tasseled and 50 percent mature, both ahead of average. Grain sorghum was 78 percent headed and 44 percent of the crop has been harvested, both ahead normal. The condition index was 69 points compared to 70 a week ago. The condition index for peanuts improved to 75 points, up 4 points from last week, with 67 percent of the acreage pegging. Rice was 70 percent headed with a condition index of 81, down 3 points from a week ago. Pastures and hay field conditions varied considerably across the state depending on rainfall. Statewide, 22 percent of the pasture acreage was rated in good to excellent condition; 40 percent was rated poor to very poor; and 38 percent was rated in fair condition.

Tuesday, July 17, 2012

Agriculture Market Summary July 17, 2012

For the week ending July 14, feeder cattle prices at Texas auctions were mostly $3 to $10 lower per hundredweight (cwt) compared to pre-July 4 holiday sales, with a few as much as $20 lower on calves. Texas feeder cattle sales directly to stocker operations and feedlots were $2 to $7 lower. At Oklahoma City National Stockyards, feeder cattle were $2 to $7 lower and calves were down $10 to $20. Higher grain prices, lower fed cattle, hot temperatures and poor pasture conditions all contributed to the decline. The fed cattle cash trade was more than $2 lower per cwt following a drop in wholesale beef prices. Cotton prices ended the week higher on optimism that demand will improve after China reported its economy grew more than expected during the previous quarter. Corn, grain sorghum and wheat were again higher amid ongoing concerns about crop damage due to hot, dry weather in the Corn Belt. As for futures markets, wheat, corn and cotton were higher, but feeder cattle, fed cattle and lumber were lower. Most of the state recorded precipitation during the week with many areas south and east of a line from Del Rio to Dallas reporting an inch or more. The heaviest rains fell in parts of Central Texas and in an area from Rockport on the coast, north to Brenham and east to Jasper − with some places reporting more than 10 inches of rain. The weekly USDA NASS crop progress and condition report showed cotton in mostly fair to good condition with 76 percent of the acreage squaring and 25 percent setting bolls, both ahead of the average for this date. Corn was rated in mostly good to fair condition with 83 percent of the crop tasseled and 48 percent mature, both well ahead of normal. Grain sorghum planting was completed in northern areas and 28 percent has been harvested in southern counties, ahead of the 20 percent average. The crop was reported in mostly good to fair condition. Wheat harvest was nearing completion earlier than normal. Peanuts were rated in mostly fair to good condition with 56 percent of the acreage pegging, and rice was in mostly good to excellent condition with 58 percent of the crop headed. Pastures and hay fields improved significantly in areas that received adequate rain, but declined elsewhere. Statewide, 21 percent of the pasture acreage was rated in good to excellent condition; 41 percent was rated poor to very poor; and the remainder was rated in fair condition.

Tuesday, July 10, 2012

Agriculture Market Summary July 10, 2012

For the week ending July 7, a feeder cattle price trend for Texas auctions is not available as most locations were closed for the Independence Day holiday. Texas feeder cattle sales directly to stocker operations and feedlots were mostly steady. At Oklahoma City, the sales volume was not sufficient to establish a trend. The fed cattle cash trade was almost $1 higher per hundredweight and beef prices were lower. Cotton prices were lower due to a stronger dollar, concerns about cotton demand and modest chances of beneficial rains in West Texas. Corn and grain sorghum were higher amid ongoing concerns that hot, dry weather in parts of the Corn Belt will damage the corn crop. Wheat prices followed other grains higher with an added boost from lower production forecasts for parts of Europe. As for futures markets, wheat, corn and lumber were higher, but feeder cattle, fed cattle and cotton were lower. Parts of East Texas, South Texas and the Trans-Pecos recorded an inch or more of rain during the week while little or no rain fell in other areas of the state. The weekly USDA NASS crop progress and condition report showed cotton is squaring on 61 percent of the acreage, ahead of the average pace, while 15 percent is setting bolls, slightly behind the average for this date. Cotton condition was rated mostly fair to good. Corn was rated in mostly good to fair condition with 79 percent of the crop tasseled and 32 percent mature, both well ahead of normal. Grain sorghum was 99 percent planted and 28 percent has been harvested, both ahead of the average. The crop was reported in mostly good to fair condition. Wheat was 99 percent harvested, much above the 90 percent average for this date, with the remaining crop rated in mostly fair to good condition. Peanuts are pegging on 32 percent of the acreage and rice was 47 percent headed, both slightly behind normal. Pastures declined with the hot temperatures and scattered rainfall, and were reported in mostly fair to poor condition.

Tuesday, July 3, 2012

Agricultural Market Summary July 3, 2012

For the week ending June 30, feeder cattle price trends at Texas auctions were uneven, from $8 lower per hundredweight (cwt) to $3 higher. Texas direct feeder cattle prices were down $8 to $10 compared to two weeks ago. Oklahoma City was $3 to $4 lower on feeder cattle and steady to $3 lower on calves. Steady to lower fed cattle and beef markets, dry pastures, early drought-related sales in some areas and variable quality were all factors impacting markets last week. The fed cattle cash trade was mostly inactive for the week with only 482 head of confirmed cash sales at prices unchanged from a week ago. Cotton prices were higher due to concerns about hot, dry weather in Texas and other sections of the Cotton Belt. Corn and grain sorghum were higher amid ongoing concerns that hot, dry weather in parts of the Corn Belt will damage the crop. Wheat prices followed corn higher with added worries about dry weather and lower production forecasts for parts of Europe. As for futures markets, wheat and corn were higher, but feeder cattle, fed cattle, cotton and lumber were lower. Areas south of a line from Laredo to Houston and parts of the northern Panhandle recorded a half-inch or more of rain while little or no rain fell in other areas of the state. The weekly USDA NASS crop progress and condition report showed that cotton is squaring on 33 percent of the acreage and 11 percent is setting bolls, both behind the average for this date. Cotton condition was rated mostly fair to good. Corn was rated in mostly good to fair condition with 67 percent of the crop tasseled and 11 percent mature, both ahead of normal. Grain sorghum was 95 percent planted, slightly behind normal, and 19 percent has been harvested, well ahead of the average. The crop was reported in mostly good to fair condition. Wheat was 98 percent harvested, much above the 79 percent average for this date, with the crop rated in mostly fair to good condition. Peanuts are pegging on 8 percent of the acreage and rice was 31 percent headed, with both crops in mostly good to fair condition. Pastures declined with the hot temperatures

Crop condition indices calculated by news/analytics firm DTN-Telvent dropped 22%, their soybean index fell 21% and the spring wheat index declined 7%. Here in Texas, the condition indices calculated by USDA NASS were unchanged to slightly lower compared to a week earlier, but remain well above were they were at this time last year. Cotton declined to 61 points from 62 a week ago, but much higher than the 37 point reading at this time last year. The indices for peanuts and grain sorghum also declined slightly. Corn, soybeans, wheat and oats were unchanged. Rice increased slightly. For the full Texas report, please click here.