Texas Department of Agriculture News
Daily Market News Summary
July 10, 2017
Current Prices
•Feeder cattle auctions lower; Futures lower.
•Fed cattle cash trade inactive; Formula trades lower; Futures lower; Beef prices uneven.
•Cotton prices lower.
•Grains and soybeans higher.
•Milk futures lower.
•Crude oil higher; Natural gas higher.
•Stock markets higher.
Cattle:
Texas feeder cattle auctions reported prices $3 to $10 lower. August Feeder cattle futures were 35 cents lower, closing at $144.67 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. August Fed cattle futures were 95 cents lower, closing at $113.82 per cwt. Wholesale boxed beef values were uneven, with Choice grade losing $1.30 to close at $217.54 per cwt and Select grade gaining 16 cents to close at $202.67 per cwt. Estimated cattle harvest for the week totaled 119,000 up 11,000 from last week’s total and 7,000 from a year ago. Year-to-date harvest is up 6.3%.
Cotton:
Cotton prices were lower with cash prices losing 2.00 cents to close at 66.75 cents per pound and October futures losing 2.03 cents to close at 67.72 cents per pound.
Corn and Grain Sorghum:
Corn prices were higher with cash prices gaining a nickel to close at $3.96 per bushel and July futures gaining a dime to close at $3.92 per bushel. Grain Sorghum cash prices were 16 cents higher, closing at $6.00 per cwt.
Wheat:
Wheat prices were higher with cash prices gaining 16 cents to close at $4.89 per bushel and July futures gaining 14 cents to close at $5.41 per bushel.
Milk:
Milk prices were lower with July Class III losing 3 cents to close at $15.55 per cwt.
Stock Markets and Crude Oil:
Stock markets were higher, after rallying Technology shares in the S&P 500 reversed last week’s declines, and in-turn pushed major U.S. indexes into positive territory for the day. August Crude oil futures were 17 cents higher , closing at $44.40 per barrel. It has been a strange couple month stretch for Crude oil, as prices have dropped after data released showed declining inventories around the world.
From Weekly Recap:
AUSTIN – (July 10, 2017) For the week ending July 7, 2017, most Texas feeder cattle auctions were inactive due to the Independence Day holiday. Texas Weekly Direct reported prices steady to $2 higher. Wholesale Beef values were lower at the end of the week, with Choice Grade losing $3.74 to end at $218.84 per hundredweight (cwt) and Select Grade losing $9.24 to end at $208.42 per cwt. For the time period of June 26 – July 2, the USDA NASS Field Office reported that livestock across the state were in mostly good condition. Dry pasture conditions were a concern for livestock grazing in some areas of the Southern High Plains. Pasture and range conditions were mostly fair to good. Pastures responded well to recent showers across many areas of the state. Several wildfires were set off by lightning in the Northern Low Plains. Hay was damaged by the wildfires, but no additional crop losses were reported. For the time period of June 23-29, exporters reported net sales of beef totaling 17,000 metric tons (MT), which were up 52 percent from the previous week and 36 percent from the prior four-week average. Increases were reported for Japan, Hong Kong and South Korea. Exports totaled 14,900 MT, and were unchanged from the previous week but up 7 percent from the prior four-week average. The primary destinations were Japan, South Korea and Hong Kong.
Cotton prices were higher at the close of last week, with cash prices gaining 0.75 cents to end at 68.75 cents per pound and July futures gaining 1.46 cents to end at 75.29 per bushel. The USDA NASS Field Office reported that cotton producers in some areas of the Northern High Plains were spraying for weeds, while others were fertilizing fields. Storms in the Northern Low Plains damaged cotton in some areas and slowed planting for others. Cotton was emerging in the Southern Low Plains. Cotton in the Trans-Pecos was in the bloom stage, while cotton in South Texas and South Central Texas was setting bolls.
Wheat prices were lower at the close of last week, with cash prices losing 28 cents to close at $4.73 per bushel and July futures losing 24 cents to end at $5.27 per bushel. The USDA NASS Field Office reported that the 2017 wheat harvest was in the books for most of the state. Some areas of the Northern High Plains continued harvest between storms. Net sales totaled 375,300 MT. Increases were reported primarily for the Philippines, South Korea and Mexico. Exports totaled 541,100 MT and were reported primarily to the Philippines, Mexico and Italy.
Corn prices were pretty steady at the close of last week, with cash prices gaining a penny to close at $3.91 per bushel, and July corn futures remaining at $3.82 per bushel. The USDA NASS Field Office reported that some corn fields in the Southern High Plains were showing heat stress. Corn silage harvest continued in the Cross Timbers. Corn was maturing and nearing harvest in the Upper Coast and South Central Texas. Net sales totaled 140,300 MT, which were down 56 percent from the previous week and 69 percent from the prior four-week average. Increases were reported for the Netherlands, Mexico and South Korea. Exports totaled 1,108,900 MT, and were up 9 percent from the previous week but unchanged from the prior four-week average. The primary destinations were Japan, Mexico and the Netherlands.
Grain sorghum cash prices were higher, with cash prices gaining two cents to end at $5.84 per cwt. The USDA NASS Field Office reported that sorghum planting neared completion in the Northern High Plains. Harvest was underway in the Upper Coast and Lower Valley. Net sales totaled 71,500 MT and were reported for China, Mexico and Japan. Exports totaled 13,800 MT, which were down 82 percent from the previous week and 75 percent from the prior four-week average. The destinations were Japan, and Mexico.
Milk prices were lower at the close of last week, with July Class III milk futures losing 10 cents to end at $15.58 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 26.49 percent of Texas in some stage of drought intensity, up 2.97 percentage points from last week. On the national level, drought conditions worsened slightly as well, with 22.35 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 0.75 percentage points from last week.
Commissioner Miller's Daily Market Round-Up
Contact TDA
TDA Market News
(512) 463-2496
(877) 99-GOTEX
Connect with TDA
This daily market summary, as well as additional information on agricultural weather, crop progress and agricultural markets, can be found on the TDA Market News webpage.
The USDA National Agricultural Statistics Service (NASS) Field Office provides weekly updates on crop progress and conditions, as well as monthly and annual agricultural statistics for major field crops, small grains, livestock, fruits, vegetables, pecans, poultry and more. See their website for more information. The office can also be contacted by email or (512) 916-5581
or (800) 626-3142.
Disclaimer:
The information compiled in the Daily Market Summary is obtained from a variety of sources, including those available on the internet, which are believed to be reliable and accurate, but are in no way guaranteed. This information is intended to provide only a summary of market trends and a daily snapshot of agricultural markets and economic indicators. It should not be relied upon as a sole source of market information. Commentary is the author's alone and does not in any way convey official TDA policies.
Texas Department of Agriculture
P.O. Box 12847
Austin, TX 78711>
(512) 463-7476
Daily Market News Summary
July 5, 2017
Current Prices
Feeder cattle auctions inactive; Futures lower.
Fed cattle cash trade inactive; Formula trades lower; Futures lower; Beef prices lower.
Cotton prices uneven.
Grains and soybeans higher.
Milk futures higher.
Crude oil lower; Natural gas lower.
Stock markets steady.
Cattle:
Texas feeder cattle auctions were inactive due to July 4th Holiday. August Feeder cattle futures were $.88 lower, closing at $142.22 per hundredweight (cwt). The Texas fed cattle cash trade was inactive today. August Fed cattle futures were $2.20 lower, closing at $113.55 per cwt. Wholesale boxed beef values were lower, with Choice grade losing 31 cents to close at $222.58 per cwt and Select grade losing $2.13 to close at $205.32 per cwt. Estimated cattle harvest for the week totaled 229,000 down 121,000 from last week’s total and up 11,000 from a year ago. Year-to-date harvest is up 5.1%.
Cotton:
Cotton prices were uneven with cash prices losing 0.25 cents to close at 68.00 cents per pound and July futures gaining 0.14 cents to close at 73.83 cents per pound.
Corn and Grain Sorghum:
Corn prices were higher with cash prices gaining 18 cents to close at $3.90 per bushel and July futures gaining 4 cents to close at $3.82 per bushel. Grain Sorghum cash prices were 26 cents higher, closing at $5.82 per cwt.
Wheat:
Wheat prices were higher with cash prices gaining 41 cents to close at $5.01 per bushel and July futures gaining 10 cents to close $5.51 per bushel.
Milk:
Milk prices were higher with July Class III gaining a penny to close at $15.68 per cwt.
Stock Markets and Crude Oil:
Stock markets were steady today, after the release of the minutes from the Federal Reserve’s June meeting, showed that they’re ready to start shrinking the balance sheet. August Crude oil futures were $1.94 lower, closing at $45.13 per barrel. Crude oil prices stopped recent gains after focus resettled onto the global oversupply of crude oil that plagues the market place.
From Agri-Pulse:
WASHINGTON, July 5, 2017 - In a win for corn ethanol producers, EPA is proposing to require refiners to use another 15 billion gallons of conventional ethanol next year while maintaining the 2018 biodiesel target set by the Obama administration.
Ethanol producers had lobbied the new administration not to lower the corn ethanol mandate, which the Obama administration had raised to 15 billion gallons for the first time for 2017. The biodiesel industry was looking for an increase in the 2018 mandate for their product but was unsuccessful in persuading the agency to do so.
However, the Trump administration’s first set of renewable volume obligations, which represent the president's first major actions on biofuel policy, would slightly reduce the total amount of advanced biofuels that would have to be used in 2018 to 4.24 billion gallons, down from 4.28 billion gallons required for 2017. The reduction reflects the new administration’s lower forecast for production of cellulosic biofuel, a next-generation product that can be made from corn cobs, wood chips and other sources of plant cellulose.
The advanced biofuel target includes the 2.1-billion-gallon minimum requirement for biodiesel usage set earlier by the Obama administration and a new 238-million gallon mandate for cellulosic biofuels in 2018. The biodiesel minimum is 2 billion gallons this year while the cellulosic mandate is 311 million gallons.
The remainder of the advanced biofuel mandate is likely to be filled by biodiesel or renewable diesel, a diesel alternative produced through a hydrogenating fats and oils.
“Increased fuel security is an important component of the path toward American energy dominance,” said EPA Administrator Scott Pruitt. “We are proposing new volumes consistent with market realities focused on actual production and consumer demand while being cognizant of the challenges that exist in bringing advanced biofuels into the marketplace."
The Renewable Fuels Association appealed to Pruitt in April to maintain the 15-billion-gallon target for conventional biofuel that was originally set by the 2009 energy law. The Energy Information Administration estimated last month that U.S. ethanol production will reach 15.8 billion gallons in 2017, up from 14.8 billion gallons in 2017.
“Consumers only see the full benefits of the RFS when EPA implements the policy as intended by Congress,” said Bob Dinneen, RFA's president and CEO. “By staying the course and maintaining a strong RFS, consumers will continue to benefit from the policy, including a greater choice at the pump, while breathing cleaner air and seeing a boost to local economies.”
Wesley Spurlock, president of the National Corn Growers Association, said, “We are pleased to see EPA pick up where last year’s RFS rulemaking left off and propose a rule that keeps the RFS on track for conventional ethanol production. EPA’s proposal is good for farmers who are facing tough economic times and good for consumers who want affordable fuel choices that give us a cleaner environment.”
Emily Skor, CEO of Growth Energy, said the proposed renewable volume obligations, or RVOs, were "the first real test of the current administration’s pledged support for renewable fuels, and we are encouraged to see the EPA demonstrate President Trump’s continued commitment to the Renewable Fuel Standard."
EPA said in the proposed rule issued Wednesday that while the 15-billion-gallon mandate for 2018 was “reasonably attainable,” the relatively small number of retail stations that sell higher ethanol blends are still limiting the growth of the biofuel market.
“We continue to believe that the constraints associated with the E10 blend wall do not represent a firm barrier that cannot be crossed. … However, we also recognize that the market is not unlimited in its ability to respond to the standards we set,” the agency said.
While a USDA grant program has led to a significant increase in the number of stations that can sell E15 and E85 ethanol blends, the impact of the funding should "be fully phased in by the end of 2017 and thus have no influence on further growth in the number of retail stations offering E15 and E85 in 2018," EPA said.
The biodiesel industry is disappointed that EPA didn't increase the targets for 2018 and also proposed to keep the minimum biodiesel number at 2.1 billion gallons though 2019. The Obama administration had already set the minimum biodiesel target for 2018 at 2.1 billion gallons, up from 2 billion gallons this year.
The proposed rule said that the 2016 expiration of the $1-a-gallon biodiesel tax credit has created some uncertainty about future production levels: "Very high volumes of advanced biodiesel and renewable diesel were supplied in the last quarter of 2016, likely driven by a desire to capture the expiring tax credit, while significantly smaller volumes of these fuels were supplied in the first quarter of 2017." The agency also expressed concern that setting a higher advanced biofuel requirement could shift feedstocks to biofuel production from existing uses.
The National Biodiesel Board wanted EPA to raise the advanced biofuel mandate for 2018 of at least 5.25 billion gallons and increase the biomass-based diesel volume for 2019 to 2.75 billion gallons.
“This proposal continues to underestimate the ability of the biomass-based diesel industry to meet the volumes of the RFS program,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board.
“This is a missed opportunity for biodiesel, which reduces costs, provides economic benefits and results in lower prices at the pump. Higher advanced-biofuel and biomass-based diesel volumes will support additional jobs and investment in both rural economies and clean-energy-conscious communities.”
The president of the American Soybean Association, Ron Moore, noted that there were 2.9 billion gallons of biodiesel and renewable diesel used in 2016. "To have the levels proposed be no higher than called for in 2018 and less than what is being utilized in 2016 is disappointing and would miss an opportunity to utilize surplus soybean oil to diversify our fuel supply and boost jobs, particularly in rural America," he said.
On a separate issue, the U.S. industry on Wednesday said it was pleased that Brazil has delayed a decision on imposing a tariff of up to 17 percent on imports of U.S. ethanol.
“Imposing tariffs on U.S. ethanol imports will hurt Brazilian consumers by driving up their costs at the pump,” three U.S. trade groups -- the U.S. Grains Council, RFA and Growth Industry -- said in a joint statement. “Additionally, this action on U.S. ethanol imports will go against Brazil’s own longstanding view that ethanol tariffs are inappropriate and will harm the development of the global ethanol industry.
Commissioner Miller's Daily Market Round-Up
Contact TDA
TDA Market News
(512) 463-2496
(877) 99-GOTEX
Connect with TDA
This daily market summary, as well as additional information on agricultural weather, crop progress and agricultural markets, can be found on the TDA Market News webpage.
The USDA National Agricultural Statistics Service (NASS) Field Office provides weekly updates on crop progress and conditions, as well as monthly and annual agricultural statistics for major field crops, small grains, livestock, fruits, vegetables, pecans, poultry and more. See their website for more information. The office can also be contacted by email or (512) 916-5581
or (800) 626-3142.
Disclaimer:
The information compiled in the Daily Market Summary is obtained from a variety of sources, including those available on the internet, which are believed to be reliable and accurate, but are in no way guaranteed. This information is intended to provide only a summary of market trends and a daily snapshot of agricultural markets and economic indicators. It should not be relied upon as a sole source of market information. Commentary is the author's alone and does not in any way convey official TDA policies.
Texas Department of Agriculture
P.O. Box 12847
Austin, TX 78711>
(512) 463-7476