TDA Market Recap February 9, 2009

AUSTIN - (Feb. 9, 2009) For the week ending Feb. 7, 2009, feeder cattle prices at Texas auctions were steady to $7 higher per hundredweight, with most of the trade $2 to $4 higher. Markets were supported by the lighter numbers being offered for sale and a USDA cattle report that said inventories were smaller than expected. Fed cattle prices were slightly higher. Cotton ended the week modestly higher amid prospects for improved demand and lower global production. Corn prices rose late in the week on better-than-expected export sales and the ongoing drought in South America, but still ended slightly lower for the week. As for futures markets, feeder cattle, finished cattle, cotton and lumber closed the week higher, while wheat and corn were lower. Parts of East Texas received up to 1.5 inches of rain, but most areas of the state recorded no rainfall during the week. The wheat crop continued to decline with the dry weather and remains in mostly very poor to poor condition. Field preparations for spring planting were active. Pastures were reported to be in mostly very poor to poor condition.