TDA Market Recap July 12, 2010

AUSTIN – (July 12, 2010) For the week ending July 10, feeder cattle prices at Texas auctions were mostly steady to $4 higher per hundredweight with a few locations as much as $9 higher. Fed cattle prices were $1 to $1.50 higher per hundredweight in spite of lower wholesale beef prices. Cotton prices declined after beneficial rains from Hurricane Alex boosted crop prospects, which were confirmed in the USDA supply and demand report on Friday. Grain prices were higher for the week, but declined on Friday after USDA released higher than expected production and stocks projections. Wheat prices were supported by concerns that hot, dry weather in Europe could reduce global production. Higher crude oil prices and a weaker dollar supported corn and grain sorghum markets. As for futures markets, feeder cattle, fed cattle, cotton, wheat and corn were higher, while lumber was lower. Most of the state recorded rainfall during the week with the heaviest amounts along the coast and on the Plains. Topsoil moisture was rated mostly adequate to surplus statewide, though some short moisture supplies were also noted, especially in the Blacklands and parts of Northeast Texas. Wheat harvest was 91 percent complete, though rains caused delays in some areas. On the High Plains, cotton development was slowed by cooler than normal temperatures. Statewide, 75 percent of the acreage is squaring and 14 percent is setting bolls, both ahead of normal. Grain sorghum planting neared completion and 3 percent of the crop has been harvested, well behind average. For corn, 74 percent of the acreage is silking, slightly ahead of normal, and 19 percent of the acreage is mature. Crops and pastures were reported in mostly good condition.