TDA Market Recap January 12, 2009

AUSTIN - (Jan. 12, 2009) For the week ending Jan. 10, 2009, feeder cattle prices at Texas auctions were higher than pre-holiday levels by $4 to $8 per hundredweight. Fed cattle prices declined by almost $3 as stagnant beef prices, tight processor margins and fluctuating grain markets pressured prices. Cotton prices ended the week lower on concerns that demand would continue to decline in a weakening economy. Grain prices dipped lower at mid-week and then finished higher amid worries that unfavorable weather in South America would reduce global supplies. As for futures markets, feeder cattle, finished cattle, corn and lumber ended the week lower, while cotton and wheat were higher. Little rain fell anywhere in the state last week and topsoil moisture is short to very short in most areas. The state's wheat crop is developing slowly because of the dry soils and is rated in mostly poor to fair condition statewide. Cotton harvest is 95 percent complete with preparations for the 2009 crop underway in southern locations. Pastures remain very dry and in need of rain across most of the state.