Agricultural Market Summary for Sept. 9, 2013

For the week ending Sept. 7, 2013, feeder cattle prices reported by Texas auctions were $4 lower to $3 higher per hundredweight (cwt) compared to the previous week. Texas direct feeder cattle sales were $1 to $3 higher. Fluctuating grain prices and the possibility this year’s corn crop might be smaller than previously predicted has introduced more uncertainty for feeder cattle buyers. This also has resulted in some instances of lower prices in spite of the shrinking supply. Fed cattle prices were steady. Wholesale beef prices were lower. Weekly beef export sales were down 24 percent from the previous week, but 17 percent higher than the prior four-week average. Cumulative sales for the year are down nearly 16 percent from last year. Cotton prices remained unchanged, as a decline in U.S. crop conditions and strong export sales were offset by ongoing uncertainty about Chinese cotton policies. Cotton export sales were more than double the previous week and nearly three times higher than the prior four-week average. China, Turkey and Thailand were the largest buyers. Corn and grain sorghum prices were lower due to pressure from increasing new-crop supplies, better than expected yields in parts of the South and weak exports. Weekly corn export sales for the current marketing year were negative for the third time in four weeks as cancellations outweighed new sales. Sales for the next marketing year were less than half the previous week and down 39 percent from the prior four-week average. Wheat prices were higher mostly because of strong export sales, up 21 percent from the previous week and 18 percent higher than the prior four-week average. Shipments totaled nearly 1 million metric tons, the highest weekly total for the marketing year. Futures markets were higher for fed cattle, wheat and lumber, but lower for feeder cattle, cotton and corn. One-half inch or more of rain fell during the week in much of the area south and east of a line from Eagle Pass to Brady to Lufkin. More details on agricultural weather and crop conditions are available in the weekly USDA NASS “Texas Crop Progress and Condition” report available 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.