TDA Market Recap January 17, 2012

AUSTIN – (Jan. 17, 2012) For the week ending Jan. 14, feeder cattle prices at Texas locations covered by USDA Market News were mostly steady to $2 higher per hundredweight, with some steady to $2 lower. Texas direct feeder cattle sales were steady to $2 higher, while Oklahoma City was $4 to $12 higher in its first sale after the holidays. Buyers continue to actively pursue available cattle, though prices have leveled off somewhat following the post-holiday surge. Fed cattle cash prices were $2 higher in spite of lower beef prices and tight packer margins. Cotton and grain prices declined late in the week in reaction to USDA production and stocks reports, a stronger dollar and ongoing concerns that the European debt crisis could erode demand. As for futures markets, feeder cattle, fed cattle and lumber were higher, while cotton, wheat and corn were lower. Most of the state east of a line from Corpus Christi to Midland to Childress recorded rainfall during the week with the highest totals reported in Southeast Texas. Crop progress and condition information from USDA were not available in time for this week’s recap.