TDA market recap, Dec. 21
AUSTIN -- For the week ending Dec. 21, Texas feeder cattle auctions reported prices steady to $10 higher per hundredweight (cwt) as they conducted their last sales of the year. Texas direct feeder cattle sales were steady to $2 higher. Market fundamentals remain bullish with tight supplies, near-record high fed cattle prices and grain prices much lower than they were at this time last year, all of which continue to support feeder prices. Fed cattle cash prices were $1 lower. Wholesale beef values were lower for Choice-grade offerings, but higher for Select.
Cotton prices were higher primarily due to stronger than expected export sales and carryover from higher financial markets. Weekly cotton export sales were up 36 percent from the previous week and more than double the average needed to meet projections for the marketing year. Major buyers were Turkey, China, South Korea, and Columbia. Corn and grain sorghum prices were higher based on better than expected weekly export sales and in spite of continued rejections of U.S. shipments by China. Corn export sales for the week were up 19 percent from the previous week and two percent higher than the four-week average. Mexico, China, and South Korea were the primary buyers. However, shipments were down 29 percent from a week earlier and 20 percent below the average. Wheat prices were lower as large world supplies and export competition from other suppliers continued to pressure the market. In spite of concerns about U.S. wheat exports, sales for the week were up 76 percent from the previous week and 47 percent higher than the prior four-week average. However, shipments were down 33 percent from the previous week and 17 percent below the average.
Futures markets were higher for fed cattle, corn, and lumber, unchanged for wheat, and lower for feeder cattle and cotton. Precipitation fell statewide during the week, with the exception of the Lower Rio Grande Valley. Some areas of North and East Texas recorded more than 2 inches of rain. This week’s U.S. Drought Monitor showed little change in Texas from the previous report, with the area of the state rated in some degree of drought holding steady at 74 percent. Most of East Texas and sections of the Trans-Pecos and South Texas are free of drought.
Texas Cash Markets for the week ending Dec. 21:
•Feeder steers, $162.56/cwt
•Fed cattle, $130/cwt
•Slaughter lambs, $182.50/cwt
•Slaughter goats, $250/cwt
•Grain sorghum, $7.70/cwt
•Cabbage, $10.20/50 lbs
•Feeder cattle, $166.97/cwt
•Fed cattle, $132.52/cwt
•Lumber, $373.60/1000 bd ft.
All cash prices above are market averages for locations covered by the U.S. Department of Agriculture Market News program and do not reflect any particular sale at any specific location.
Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery.
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.”
For more information, contact the Texas Department of Agriculture at 1-800-835-5832 or visit the website, http://www.TexasAgriculture.gov.