TDA Market Recap
AUSTIN -- For the week ending April 12, feeder cattle prices reported by Texas auctions were mostly steady to $6 higher per hundredweight (cwt) compared to their previous sale. However, a few locations also noted lower prices, especially on feeders weighing 700 pounds or more. Texas direct feeder cattle prices were steady on cattle weighing less than 800 pounds, but lower on heavier weights. Tight supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were $1 lower at $147 per cwt in very light trade. Wholesale beef values were lower.
Cotton prices were lower for the week as large world supplies continue to pressure the market. However, other market factors were more supportive. World stocks outside China are expected to fall to their lowest level in four years, and U.S. cotton carryover is projected to be the lowest since 1991. In addition, markets are concerned about how the drought conditions in the Texas Plains will impact this year’s crop.
Wheat prices declined after projected U.S. ending stocks came in higher than expected and export sales fell to their lowest level of the year. The decline was limited by ongoing concerns about dry conditions on the U.S. Plains.
Corn and grain sorghum prices were lower due to good planting weather in some parts of the country and weak export data.
Parts of East, North, and West-Central Texas recorded one-half inch or more of rainfall during the week, with lighter totals reported elsewhere in the state. Last week’s U.S. Drought Monitor showed some improvement in overall conditions in Texas, with the total area of the state rated as abnormally dry or in drought down two percentage points to 83 percent and a larger drought-free area in East Texas. However, the Panhandle, Northwest Texas, and a wide band from Uvalde and Del Rio northeast to Fort Worth remain in extreme to exceptional drought. More than 40 percent of the state is in severe drought condition or worse. Meanwhile, parts of West, South, and East Texas remain drought-free. Nationally, conditions improved somewhat with 50 percent the contiguous states reported in some degree of abnormal dryness or drought, down three percentage points from a week ago.
Texas Cash Markets for the week ending April 12:
•Feeder steers, $173.45/cwt
•Fed cattle, $147/cwt
•Slaughter lambs, $168/cwt
•Slaughter goats, $231/cwt
•Grain sorghum, $8.85/cwt
•Cabbage, $6.25/50 lbs.
•Feeder cattle, $179.50/cwt
•Fed cattle, $144.85/cwt
•Corn, $4.99 /bu
•Lumber, $328.30/1000 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 additional information, contact the Texas Department of Agriculture at 800-835-5832 or visit www.TexasAgriculture.gov.