Texas Cash Market recap, June 1
AUSTIN -- For the week ending June 1, feeder cattle prices reported by Texas auctions ranged from $4 lower to $6 higher per hundredweight (cwt) compared to the previous week, with a few locations as much as $10 higher on a portion of their offerings. Texas direct feeder cattle sales were mostly steady with a few head $2 higher. Negative cattle feeding margins and lower feeder cattle futures continued to pressure the market, while tight supplies, higher beef prices, and improved pasture conditions in some areas remained supportive. Fed cattle cash prices were unchanged from a week ago. Wholesale beef prices were lower for the week, but remain at historically high levels above $200 per cwt.
Cotton prices were lower due to burdensome world supplies, speculative and fund activity, and weaker economic reports from China. However, traders remained concerned about the very dry conditions in major Texas growing areas around Lubbock. Weekly cotton export sales were up 16 percent from the previous week, but 23 percent less than the prior four-week average. Wheat prices were higher for the week, but gains were limited after several countries suspended imports of U.S. wheat following the discovery of unapproved GMO wheat seedlings in an Oregon field. Weekly wheat exports were the smallest of the marketing year and much below the level needed to meet U.S. Department of Agriculture (USDA) projections. Corn prices were higher after rains in the Corn Belt caused further planting delays. Corn export sales for the current marketing year were well below both the previous week and the prior four-week average. However, large Chinese purchases pushed new crop sales much higher.
As for futures markets, fed cattle, wheat, corn, and lumber were higher, but feeder cattle and cotton were lower. Most of the state received rainfall during the week, with totals of an inch or more reported in scattered locations statewide.
Texas Cash Markets for the week ending June 1:
•Fed cattle, $123.96/cwt
•Slaughter lambs, $97.50/cwt
•Slaughter goats, $169/cwt
•Onions, $11.00/50 lbs
•Feeder cattle, $144.32/cwt
•Fed cattle, $121.30/cwt
•Lumber, $306.30/1000 bd ft.
The 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 more information, contact TDA at 1-800-835-5832 or visit the website, http://www.TexasAgriculture.gov.