Agricultural Market Summary, Sept. 4, 2013

For the week ending Aug. 31, 2013, feeder cattle prices reported by Texas auctions were $5 lower to $6 higher per hundredweight (cwt) compared to the previous week. Texas direct feeder cattle sales were mostly steady, and the Oklahoma City National Stockyards were steady to $3 lower. Fluctuations in grain markets spilled over into the feeder market. Both commodities are major sources of input costs for cattle feeders, so when one goes up, the other tends to go down. However, tight feeder cattle supplies from a smaller cow herd continue to support the market, pushing prices higher at some locations and at least limiting the declines at others. Wholesale beef prices were lower. Weekly beef export sales were up 45 percent from the previous week and nearly double the prior four-week average. Cotton prices were modestly lower due to an improvement in U.S. crop conditions ratings and ongoing uncertainty about Chinese cotton policies. Weekly cotton export sales were down 15 percent from last week, but 47 percent higher than the prior four-week average. Corn and grain sorghum prices were near unchanged. Weather forecasts for hot, dry conditions in the western Corn Belt and a lower production forecast from a Midwest crop tour were offset by forecasts for rain in the eastern Corn Belt. Weekly corn export shipments were nearly double the previous week and one percent higher than the prior four-week average. Wheat prices were higher due to a lower production forecast for Australia and supportive export sales. Wheat export sales for the week were up 12 percent from the previous week and well above the weekly total needed to meet USDA marketing year projections, but down four percent from the previous four-week average. Futures markets were higher for feeder cattle, wheat and lumber, but lower for fed cattle, cotton and corn. One-half inch or more of rain fell during the week in a band from near Del Rio to Ft. Worth, and in parts of South and South-Central Texas. The rest of the state received little or no rain. Weekly updates on agricultural weather and crop conditions are available in the 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.