Agricultural Market Summary, July 16, 2013

For the week ending July 13, 2013, feeder cattle prices reported by Texas auctions were mostly steady to as much as $8 higher per hundredweight (cwt) through Thursday, though some weakness was noted on lighter-weight calves. Between Friday and Saturday, prices were reported steady to $5 lower as larger sale volumes allowed buyers to be more selective. Texas direct feeder cattle sales were $1 to $5 higher, and prices at the Oklahoma City National Stockyards were steady to $5 higher. Prices were supported by the limited feeder cattle supplies and prospects for cheaper feed grains once this year’s crop begins to come in. However, deeply negative cattle feeding margins and dry pastures in many areas continued to limit the gains. Fed cattle cash prices were steady at $119 per cwt, and wholesale beef prices were lower. Cotton prices were lower based on weak exports and higher projected U.S. and world ending stocks. Weekly cotton export sales were down five percent from the previous week and half the prior four-week average. Shipments were 35 percent lower than a week earlier and 32 percent lower than the average. Wheat prices were higher after the projected carryover came in much lower than expected. Weekly wheat export sales were also supportive, 2.5 times higher than the previous week and double the prior four-week average. Shipments were also higher. Corn prices were lower as prospects for a large 2013 crop continued to pressure the market. Corn export sales were up 68 percent from the previous week and double the prior four-week average; however, shipments were 25 percent lower for the week and unchanged from the average. As for futures markets, cotton, wheat and corn were higher, and fed cattle, feeder cattle and lumber were lower. Scattered locations in South, East and North Texas recorded a half inch or more of rain last week, but little significant rainfall was reported in the rest of the state. The Drought Monitor showed 99 percent of the state in some degree of abnormal dryness or drought. Weekly updates on agricultural weather and crop conditions are available in the USDA-NASS “Texas Crop Progress and Condition” report at www.texasagriculture.gov/Home/ProductionAgriculture/MarketNews.aspx

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. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.” MBF = thousand board feet. For additional information, contact TDA at (800) 835-5832 or visit our website, www.TexasAgriculture.gov.