TDA Market Recap May 4, 2009

AUSTIN - (May 4, 2009) For the week ending May 2, 2009, feeder cattle price trends at Texas auctions were mixed, with some locations steady to $4 higher per hundredweight and others steady to $4 lower. Fed cattle prices were lower following a decline in boxed beef values. Cotton prices continue to rise on the prospects for a smaller U.S crop and rebounding global demand. Planting delays in the Eastern Corn Belt contributed to the increase in corn prices. As for futures markets, cotton, wheat and corn ended the week higher, while feeder cattle, finished cattle and lumber were lower. Some parts of Central and North Texas received up to 10 inches of rain during the week, while most other areas recorded more moderate amounts of rainfall. The rains helped improve pasture and crop conditions in many areas. However, soil moisture remains very short in South and West Texas and on the High Plains. Wheat is showing more drought and freeze damage as it matures, with the crop rated in mostly very poor to poor condition. Corn is 75 percent planted with the emerged acreage reported in mostly good to fair condition. Cotton planting progressed to 22 percent complete, slightly behind the 24 percent average. Pastures were reported to be in mostly fair to good condition following the recent rains.