TDA Market Recap August 2, 2010

AUSTIN – (August 2, 2010) For the week ending July 31, feeder cattle price trends at Texas auctions were uneven, from $4 lower per hundredweight to $5 higher, with a few locations as much as $8 higher. Feeder cattle supplies remain tight, but lower fed cattle prices and higher grain markets pulled some locations lower. Fed cattle were $2 lower following a drop in wholesale beef prices. Cotton prices ended the week higher on a tight supply of certified stocks ready for export; hot weather over much of the Cotton Belt; and dry conditions in the Mississippi Delta. Wheat prices rose on stronger-thanexpected export sales and thoughts that a short crop in Europe and Canada will boost demand for U.S. wheat. Corn and grain sorghum followed wheat higher. As for futures markets, cotton, wheat and corn were higher, while feeder cattle, fed cattle and lumber were lower. Areas east of Interstate 35 and the Cross Timbers region recorded rainfall ranging from a trace to more than three inches with most other locations reporting lesser amounts. Topsoil moisture was rated mostly adequate to short, except for some surplus conditions mostly in coastal regions. Cotton was squaring on 95 percent of the acreage, well ahead of normal, with bolls opening on 7 percent. The crop was rated mostly good to excellent, though some rain and flood damage was reported in the Lower Valley. Corn has benefited from recent rains on the High Plains, but harvest delays were noted in South Central Texas and the Blacklands region. The crop was reported 38 percent mature and 3 percent harvested, both well behind normal. Rains also delayed grain sorghum and rice harvests along the Upper Coast. Most crops and pastures were reported in good to fair condition statewide.