TDA Market Recap May 11, 2009

AUSTIN - (May 11, 2009) For the week ending May 9, 2009, feeder cattle price trends at Texas auctions were mixed, with most locations steady to $5 higher per hundredweight and some steady to $2 lower. Fed cattle prices were lower following a drop in beef values. Cotton prices continue to rise on the prospects that an economic recovery will increase demand. Corn and wheat were higher because of concerns about planting progress in the Midwest, with added support from higher crude oil prices. As for futures markets, feeder cattle, finished cattle, cotton, wheat and corn ended the week higher, while lumber was lower. Some locations in East Texas recorded up to six inches of rain last week, but most other areas reported little to no rainfall. Winter wheat is showing evidence of freeze damage and the dry growing season as the crop remains in mostly very poor to poor condition. Harvest is underway in South Texas. Cotton planting is active in many areas and is 27 percent complete, slightly behind the normal pace. Corn is being planted on the High Plains and is tasseling in South Texas. Eighty percent of the state's corn acreage is planted, compared to 89 percent on average by this date. Recent rains have improved pastures in many areas, but many remain in poor to very poor condition.