TDA Market Recap January 20, 2009

AUSTIN - (Jan. 20, 2009) For the week ending Jan. 17, 2009, feeder cattle prices at Texas auctions were down slightly as volumes return to normal following the holidays. Fed cattle prices were modestly higher. Cotton and grain prices fell sharply on Monday following bearish USDA production and stocks reports. Markets were sharply higher on Friday, which helped cotton finish the week unchanged, while grains still ended below the previous week's close. A strong dollar, lower stock markets and falling crude oil prices contributed to the declines. As for futures markets, feeder cattle, finished cattle and lumber closed the week higher, while cotton, wheat and corn were lower. Parts of Southeast Texas received up to one-half inch of rain, but most of the state recorded trace amounts, at best. As a result, much of the winter wheat crop is highly stressed and in mostly poor to fair condition statewide. Cotton harvest is nearing completion on the Plains while preparations for this year's crop are underway in southern locations. Pastures are very dry and in need of rain in most areas.