TDA Market Recap January 11, 2010

AUSTIN – (Jan. 11, 2010) For the week ending Jan. 9, feeder cattle prices at Texas auctions were mostly steady to $3 higher per hundredweight compared to pre-holiday sales. Fed cattle prices were slightly higher as wintry conditions hampered livestock movement and reduced gains. The lower supplies and improved demand helped push beef prices higher. Cotton prices declined to their lowest level in six weeks after China announced it was raising interest rates. China is the leading importer of U.S. cotton and tighter credit could reduce its purchases. Corn and grain sorghum prices ended the week higher as cold weather increased the demand for livestock feed. As for futures markets, feeder cattle, wheat, corn and lumber were higher, while fed cattle and cotton were lower. Parts of East Texas received up to one-quarter inch of rain during the week, but little rainfall was recorded elsewhere in the state. Much of the state experienced record or near-record cold temperatures over the weekend, stressing winter wheat and vegetable crops. Winter wheat remains in mostly fair to good condition statewide. Cotton harvest was completed on the Southern High Plains and is nearing completion in other areas. Pasture conditions across the state were rated poor to good as the cold weather added to supplemental livestock feed requirements.