TDA Market Recap July 20, 2009

AUSTIN – (July 20, 2009) For the week ending July 18, 2009, feeder cattle price trends at Texas auctions were mixed, with some locations steady to $5 lower per hundredweight and others steady to $4 higher. Buyers remain very selective, but lower grain prices have allowed feedlots to bid more for feeder cattle. Fed cattle prices were higher. Cotton prices were higher on prospects for reduced global production and higher demand. Corn and grain sorghum declined under pressure from good growing weather in the Midwest and weak export sales. As for futures markets, feeder cattle, finished cattle, cotton and wheat ended the week higher, while corn and lumber were lower. Part of the Plains, East Texas and the Upper Coast received as much as 3 inches of rain during the week, but coverage was spotty. The rest of the state received trace amounts at best. Topsoil moisture remains in short to very short supply in most locations and pasture conditions were rated mostly very poor to fair. Crops in many areas are suffering from heat and moisture stress. Cotton was setting bolls on 22 percent of the acreage and bolls were opening on 3 percent. The crop was reported in mostly fair to good condition. The state’s corn crop is 37 percent mature, slightly ahead of normal, and in mostly good to fair condition. Grain sorghum is 23 percent harvested with another 32 percent mature. Hay baling continued, but the crop has suffered from the hot, dry conditions.