TDA Market Recap August 23, 2010

AUSTIN – (August 23, 2010) For the week ending August 21, feeder cattle price trends at Texas auctions were mixed, with some locations steady to $6 lower and others steady to $4 higher. The hot, dry weather continues to limit demand, though tight feeder cattle supplies, higher fed cattle markets and lower grain prices helped push some locations higher. Fed cattle were sharply higher following recent increases in wholesale beef prices. Cotton prices declined due to good growing weather in many areas and prospects for a good U.S. crop. Wheat prices were lower because of the ample global supplies. Corn and grain sorghum were higher after a Midwest crop tour reported that yields might be lower than current forecasts. As for futures markets, feeder cattle, fed cattle, corn and lumber were higher while cotton and wheat were lower. Most areas of the state recorded hot temperatures and little or no rainfall although as much as two inches of rain fell in isolated locations on the High Plains, Southern Plains and in Southeast Texas. Topsoil moisture remains in mostly short to adequate supply with additional areas reporting very short conditions. Cotton harvest is underway with five percent of the acreage harvested, slightly behind normal. Bolls are opening on 14 percent of the crop and bolls are setting on 91 percent. Corn harvest progressed to 36 percent complete and 56 percent of the crop is mature, both behind the normal pace. Grain sorghum harvest was 41 percent complete and rice was 58 percent harvested. Corn and peanuts were reported in good to excellent condition while cotton, rice, grain sorghum, soybeans and pastures were mostly good to fair. Conditions indexes for these crops are higher than they were at this time last year.