TDA Market Recap August 16, 2010

AUSTIN – (August 16, 2010) For the week ending August 14, feeder cattle prices at Texas auctions were mostly steady to $5 lower per hundredweight, with a few sales to $4 higher and some to $6 lower. Hot weather and volatile grain prices added to the seasonal declines, while tight supplies continue to hold prices well above last year’s levels. Fed cattle prices were $2 higher following increases in wholesale beef prices. Cotton ended the week higher on a continued tight supply of stocks ready for export; hot weather over much of the Cotton Belt; and flooding in Pakistan. Corn and wheat prices declined as strong U.S. production and ample global supplies are expected to more than make up for lower European grain production. As for futures markets, fed cattle, cotton, wheat, corn and lumber were higher, while feeder cattle were lower. Hot, dry conditions prevailed across the state last week. Most areas recorded little or no rainfall, though some isolated locations on the High Plains and along the coast received two inches or more. Topsoil moisture was rated mostly short to adequate, with some surplus conditions remaining in the Lower Valley and very short moisture in parts of East Texas, the Blacklands and Edwards Plateau. Cotton was setting bolls well ahead of average on 87 percent of the acreage, while bolls were opening on 13 percent. Grain sorghum development was behind normal with 52 percent of the crop mature and 36 percent harvested. Crop losses were reported in some areas after late rains caused grain sorghum heads to sprout. Corn was rated 55 percent mature and 31 percent harvested, both behind the average pace. Rice was 34 percent harvested. Cotton, grain sorghum, corn, rice, and pastures were reported in mostly good to fair condition, while peanuts were mostly good to excellent.