TDA Market Report
AUSTIN -- For the week ending May 31, feeder cattle prices reported by Texas auctions were mostly steady early in the week and then strengthened to end the period mostly $2 to $5 higher per hundredweight (cwt). Many locations noted light receipts as rain and muddy pastures limited cattle movement. Texas direct feeder cattle prices were steady. Limited supplies and strong demand continue to support the feeder cattle market. Fed cattle cash prices were 50 cents lower per cwt.
Cotton prices were unchanged from a week earlier. Markets remained under pressure from the beneficial rains that fell over most of the state’s major cotton-producing areas. The rain significantly boosted crop prospects, but timely moisture will still be needed throughout the growing season.
Wheat prices were lower following the rain on the U.S. Southern Plains. These rains will help some of the crop, but likely came too late to benefit much of the acreage in Texas. Harvest is underway in some areas, adding to already-burdensome world supplies.
Corn and grain sorghum prices also were lower due to improving prospects for a large corn crop this year. There are some lingering concerns about planting delays in the eastern and northern Corn Belt, but overall planting progress caught up with the average pace. Growing conditions also have been favorable.
Almost the entire state received rainfall, mostly early in the week. The heaviest accumulations were in the southeastern quarter of the state, with totals of 2 or more inches common, and 8 or more inches reported in some locations.
Last week’s U.S. Drought Monitor showed another modest improvement following the previous weekend’s rain. Eighty-nine percent of the state remains abnormally dry or in some degree of drought, down 1 percentage point from a week earlier. The most notable change was a 14 percentage point drop in the area rated in the worst category, exceptional drought. However, most of the state west of I-45, east of the Pecos River and north of Corpus Christi remains in some degree of drought.
Nationally, conditions remained unchanged with 48 percent the contiguous states reported in some degree of abnormal dryness or drought.
Texas Cash Markets for the week ending May 31:
•Feeder steers, $184.69/cwt
•Fed cattle, $143.13/cwt
•Slaughter lambs, $168/cwt
•Slaughter goats, $215/cwt
•Grain sorghum, $8.11/cwt
•Feeder cattle, $197.05/cwt
•Fed cattle, $137.80/cwt
•Lumber, $312.30/1000 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.