Agricultural Market Summary, July 2, 2013

For the week ending June 29, 2013, feeder cattle prices reported by Texas auctions were mostly steady to $5 higher per hundredweight (cwt) compared to the previous week. However, a few were as much as $8 higher on a portion of their offerings, and some were $3 lower on fleshy calves and plainer feeder cattle. Texas direct feeder cattle sales were steady to $4 higher, and prices at the Oklahoma City National Stockyards were up $1 to $4. Shrinking feeder cattle supplies, higher feeder cattle futures, improved pasture conditions in some areas and high beef prices helped push the market higher, while ongoing negative cattle feeding margins limited the increase. Fed cattle cash prices were unchanged from a week ago. Wholesale beef prices were lower for Choice cuts, but higher for Select-grade offerings. Cotton prices were higher due to stronger equity markets and ongoing concerns about dry conditions in Texas. Weekly cotton export sales were well below both the previous week and prior four-week average. Wheat prices declined amid increasing harvest-time supplies and better than expected wheat yields in some areas. Weekly wheat exports were nearly double the previous week’s total and much higher than the average needed to meet projections for the marketing year. Corn and grain sorghum prices were higher because of lower than expected supplies on hand, strong weekly export sales and higher ethanol production the previous week. Corn export sales were nearly three times higher than the prior week, with cumulative sales now higher than the USDA projected total for the marketing year. As for futures markets, feeder cattle, corn and lumber were higher, while fed cattle, cotton and wheat were lower. Southeast Texas and most of the state west of a line from Victoria to Fort Worth recorded rainfall during the week with amounts ranging from a trace to more than one-half inch in parts of South and West-Central Texas, the Trans-Pecos and western Panhandle. Information on agricultural weather and crop condition is available in the weekly USDA-NASS “Texas Crop Progress and Condition” report at www.nass.usda.gov/Publications/State_Crop_Progress_and_Condition/current/current_tx.rtf.

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.