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/.
