Crop Market Update: August 29, 2016

Corn was down last week with Greenville cash corn currently trading $0.20 lower than a week ago and $0.33 lower than a year ago at $3.31/bu on Friday. September futures contracts are $0.18 lower on the week at $3.16/bu. Harvest is underway in Mississippi with 30% of the state’s corn crop harvested, well behind last year’s pace and the 5-year average of 49%. Nationally, about 60% of the U.S. corn crop is dented, ahead of a year ago as well as the five year average of 52%. Favorable growing conditions have the U.S. corn crop looking good with 75% of the crop rated in good or excellent condition.

Soybean are trading lower this week, with Greenville soybeans trading $0.08 lower at $10.12/bu on Friday. A year ago, Greenville soybeans were trading for $9.04/bu. Nearby September soybean futures are trading $0.36 lower than a week ago. Mississippi’s soybean crop development is slightly behind the 5-year average as well as a year ago with 5% of the crop harvested compared to 14% a year ago and a five year average of 6%. Mississippi’s soybean crop condition remained steady with 72% of the state’s crop rated in good or excellent condition. The U.S. soybean crop is ahead of schedule with 94% of the crop setting pods compared to a 5-year average of 92%. Nationally, the soybean crop looks good overall with 73% of the nation’s soybean crop rated in good or excellent condition.

September wheat futures are down $0.44 from a week ago at $3.84 while Greenville wheat prices are down $0.43 on the week at $3.49/bu on Friday. The U.S. spring wheat crop is 81% harvested slightly behind last year but well ahead of the 5-year average of 62%.

Cotton prices finished the week higher with South Delta cash prices trading $0.14/cwt higher than a week ago at $67.21/cwt and $5.63/cwt higher than a year ago. Nearby cotton futures are higher with October cotton futures closing at $67.71, up $0.14/cwt from last week. Mississippi producers currently have about 30% of the state’s cotton crop opening bolls, behind a year ago but on pace with the 5-year average of 31%. This week 60% of Mississippi’s cotton crop is rated in good or excellent condition while 48% of the U.S. crop is in good or excellent condition. Nationally, 23% of the cotton crop is opening bolls, on pace with the 5-year average of 23%.

For more detail on crop futures and Mississippi local cash prices click here.

Cattle Market Notes: Week Ending August 26, 2016

Cash Cattle:

Cash traded fed cattle were lower this week. The five-area fed steer price for the week of August 18-August 25 averaged $114.81 for live sales, and $180.38 for dressed; respectively, down $2.73 and $5.68. Total volume sold was up 1,000 head from a week ago and up 55,000 head from last year.

Feeder steer cattle and calves were mostly lower across the U.S. this week. Oklahoma City 500-550 pound steers were $7.00 lower while heavier 750-800 pound steers were $9.00 lower. Mississippi pasture conditions were slightly better this week with 63% rated good or excellent, up 3% from a week ago.  In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were averaging $150.00, unchanged from a week ago, while heavy steers were averaging $120.50, down $2.50 from last week.

[ … For Livestock Prices and Production data and trends CLICK HERE … ]

Futures:

Live cattle futures and feeder futures were lower this week. October live cattle were down $4.10 on the week and $37.80 lower than a year ago at $106.20, while December live cattle were down $3.65 from last week and down $37.93 from a year ago at $108.10. Feeder cattle were lower this week with September futures down $3.60 from last Friday and down $62.75 from a year ago at $140.10 while October futures are down $4.85 on the week at $136.10. Nearby corn futures are down $0.18 from a week ago at $3.16 while December futures are down $0.19.

Beef:                                                                                           

Wholesale boxed beef prices are mixed compared to a week ago. Choice boxes averaged $200.34, down $0.90 from a week ago. Select boxes ended the week with an average of $193.80, up $0.26 from last week. The choice-select spread narrowed from $7.70 a week ago to $6.54 this week.

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.

Crop Market Update: August 23, 2016

Corn was higher last week with Greenville cash corn currently trading $0.12 higher than a week ago and $0.09 lower than a year ago at $3.51/bu on Friday. September futures contracts are $0.12 lower on the week at $3.34/bu. Harvest is underway in Mississippi with 14% of the state’s corn crop harvested, well behind last year’s pace and the 5-year average of 32%. Nationally, about 40% of the U.S. corn crop is dented, ahead of a year ago as well as the five year average of 35%. Favorable growing conditions have the U.S. corn crop looking good with 75% of the crop rated in good or excellent condition.

Soybean futures are trading higher this week but Mississippi soybeans are lower, with Greenville soybeans trading $0.02 lower at $10.20/bu on Friday. A year ago, Greenville soybeans were trading for $9.15/bu. Nearby September soybean futures are trading $0.28 higher than a week ago. Mississippi’s soybean crop development is slightly behind the 5-year average as well as a year ago with 1% of the crop harvested compared to 6% a year ago and a five year average of 3%. Mississippi’s soybean crop condition improved some with 71% of the state’s crop rated in good or excellent condition. The U.S. soybean crop is ahead of schedule with 89% of the crop setting pods compared to a 5-year average of 85%. Nationally, the soybean crop looks good overall with 72% of the nation’s soybean crop rated in good or excellent condition.

September wheat futures are up $0.04 from a week ago at $4.27 while Greenville wheat prices are up $0.04 on the week at $3.92/bu on Friday. The U.S. spring wheat crop is rated 66% good or excellent condition, slightly worse than last year when the crop was rated 68% good or excellent.

Cotton prices finished the week lower with South Delta cash prices trading $2.31/cwt lower than a week ago at $67.07/cwt and $1.68/cwt higher than a year ago. Nearby cotton futures are lower with October cotton futures closing at $67.57, down $2.31/cwt from last week. Mississippi producers currently have about 18% of the state’s cotton crop opening bolls, behind a year ago but ahead of the 5-year average of 17%. This week 58% of Mississippi’s cotton crop is rated in good or excellent condition while 48% of the U.S. crop is in good or excellent condition. Nationally, 16% of the cotton crop is opening bolls, slightly ahead of the 5-year average of 15%.

For more detail on crop futures and Mississippi local cash prices click here.

Cattle Market Notes: Week Ending August 19, 2016

Cash Cattle:

Cash traded fed cattle were mixed this week. The five-area fed steer price for the week of August 11-August 18 averaged $117.54 for live sales, and $186.06 for dressed; respectively, up $0.63 and down $0.80. Total volume sold was up 18,000 head from a week ago and up 59,000 head from last year.

Feeder steer cattle and calves were mixed across the U.S. this week. Oklahoma City 500-550 pound steers were $4.00 higher while heavier 750-800 pound steers were $2.00 lower. Mississippi pasture conditions were slightly better this week with 60% rated good or excellent, up 3% from a week ago.  In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were averaging $150.00, unchanged from a week ago, while heavy steers were averaging $123.00, down $4.50 from last week.

[ … For Livestock Prices and Production data and trends CLICK HERE … ]

Futures:

Live cattle futures and feeder futures were lower this week. August live cattle were down $2.92 on the week and $21.18 lower than a year ago at $113.40, while December live cattle were down $3.30 from last week and down $34.10 from a year ago at 111.70. Feeder cattle were lower this week with August futures down $3.12 from last Friday and down $65.73 from a year ago at $145.95 while October futures are down $3.30 on the week at $140.95. Nearby corn futures are up $0.12 from a week ago at $3.34 while December futures are unchanged.

Beef:                                                                                           

Wholesale boxed beef prices are higher compared to a week ago. Choice boxes averaged $201.24, up $0.70 from a week ago. Select boxes ended the week with an average of $193.54, up $1.06 from last week. The choice-select spread narrowed slightly from $8.06 a week ago to $7.70 this week.

Cattle on Feed:

The United States Department of Agriculture’s National Agricultural Statistics Service (USDA, NASS) released their monthly Cattle on Feed report Friday afternoon (August 19, 2016). Placements totaled 1.572 million head, an increase of 1.62% from July 2015 while cattle marketed in July totaled 1.713 million head, down 0.70% versus last year. The total number of cattle in feedlots with 1,000 head or larger capacity totaled 10.165 million head, up 1.63% versus August 1, 2015. All of the numbers were relatively close to industry expectations.

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.

August Cattle on Feed Report Recap

The United States Department of Agriculture’s National Agricultural Statistics Service (USDA, NASS) released their monthly Cattle on Feed report Friday afternoon (August 19, 2016). The report revealed that 10.165 million head of cattle were in U.S. feedlots with a capacity of 1,000 head or larger on August 1, 2016. Placements into feedlots during the month of July totaled 1.572 million head while marketings during the same month totaled 1.713 million head.

[ … For detailed numbers and charts CLICK HERE … ]

Placements totaled 1.572 million head, an increase of 1.62% from July 2015 and a 11.16% decrease from the five-year average from 2011 to 2015. Market analyst expected placements to be down 0.40%, so the reported value came in above expectations. This month’s numbers continue the trend of increasing heavy placements, with cattle larger than 800 pounds seeing a 0.8% year-over-year increase while cattle less than 600 pounds saw a 3.6% year-over-year decrease in placements.

Cattle marketed in July totaled 1.713 million head, down 0.70% versus last year and down 8.03% compared to the average from 2011 to 2015. Pre-report expectations called for marketings to be 0.7% lower than the same period last year, so they came in right where analysts anticipated they would be.

The total number of cattle in feedlots with 1,000 head or larger capacity totaled 10.165 million head, up 1.63% versus August 1, 2015 and 0.37% lower than the five-year average.  Market analysts expected a 1.3% year-over-year increase in cattle inventories, so the reported value came in slightly above expected but still well within the range of analysts’ expectations.

Crop Market Update: August 16, 2016

Corn was down last week with Greenville cash corn currently trading $0.02 lower than a week ago and $0.20 lower than a year ago at $3.39/bu on Friday. September futures contracts are $0.02 lower on the week at $3.22/bu. Harvest is underway in Mississippi with 11% of the state’s corn crop harvested, behind last year’s pace and the 5-year average of 16%. Mississippi’s corn crop condition was steady with 62% of the state’s crop rated in good or excellent condition. Nationally, about 73% of the U.S. corn crop is in the dough state, ahead of a year ago as well as the five year average of 60%. Favorable growing conditions have the U.S. corn crop looking good with 74% of the crop rated in good or excellent condition.

Soybean markets are trading higher this week, with Greenville soybeans trading $0.07 higher at $10.22/bu on Friday. A year ago, Greenville soybeans were trading for $9.37/bu. Nearby September soybean futures are trading $0.11 higher than a week ago. Mississippi’s soybean crop development is slightly ahead of the 5-year average as well as ahead of a year ago with 89% of the crop setting pods compared to 86% a year ago and a five year average of 88%. Mississippi’s soybean crop condition improved some with 69% of the state’s crop rated in good or excellent condition. The U.S. soybean crop is ahead of schedule with 80% of the crop setting pods compared to a 5-year average of 75%. Nationally, the soybean crop looks good overall with 72% of the nation’s soybean crop rated in good or excellent condition.

September wheat futures are up $0.07 from a week ago at $4.23 while Greenville wheat prices are up $0.07 on the week at $3.88/bu on Friday. The U.S. spring wheat crop is rated 66% good or excellent condition, slightly worse than last year when the crop was rated 68% good or excellent.

Cotton prices finished the week lower with South Delta cash prices trading $6.76/cwt lower than a week ago at $69.38/cwt and $4.47/cwt higher than a year ago. Nearby cotton futures are lower with October cotton futures closing at $69.88, down $6.76/cwt from last week. Mississippi producers currently have about 13% of the state’s cotton crop opening bolls, slightly behind a year ago but ahead of the 5-year average of 7%. This week 57% of Mississippi’s cotton crop is rated in good or excellent condition while 48% of the U.S. crop is in good or excellent condition. Nationally, 12% of the cotton crop is opening bolls, slightly ahead of the 5-year average of 10%.

For more detail on crop futures and Mississippi local cash prices click here.

Cattle Market Notes: Week Ending August 12, 2016

Cash Cattle:
Cash traded fed cattle were lower this week. The five-area fed steer price for the week of August 4-August 11 averaged $116.91 for live sales, and $186.86 for dressed; respectively, down $2.03 and $1.06. Total volume sold was down 4,000 head from a week ago and up 37,000 head from last year.
Feeder steer cattle and calves were higher across the U.S. this week. Oklahoma City 500-550 pound steers were $6.00 higher while heavier 750-800 pound steers were $7.00 higher. Mississippi pasture conditions were slightly lower this week with 57% rated good or excellent, down 1% from a week ago. In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were averaging $150.00, up $7.50 from a week ago, while heavy steers were averaging $127.50, up $3.50 from last week.
[ … For Livestock Prices and Production data and trends CLICK HERE … ]
Futures:
Live cattle futures and feeder futures were lower this week. August live cattle were down $1.17 on the week and $21.15 lower than a year ago at $116.33, while December live cattle were down $0.65 from last week and down $32.70 from a year ago at 115.05. Feeder cattle were lower this week with August futures down $0.78 from last Friday and down $64.43 from a year ago at $149.07 while October futures are up $0.30 on the week at $144.25. Nearby corn futures are down $0.01 from a week ago at $3.22 while December futures are unchanged.
Beef:

Wholesale boxed beef prices are higher compared to a week ago. Choice boxes averaged $200.54, up $1.83 from a week ago. Select boxes ended the week with an average of $192.48, up $1.60 from last week. The choice-select spread widened from $7.83 a week ago to $8.06 this week.
WASDE:
The United States Department of Agriculture’s World Supply and Demand Estimates were released on Friday morning (August 12, 2016). Beef production for 2016 was increased by 17 million pounds from last month’s estimate at 23.69 billion pounds. An estimated 25.8 billion pounds of beef are expected to be produced in 2017, up 15 million pounds from a month ago. Per capita consumption for 2016 was increased by 0.2 pounds per person to 55.3 pounds per person. On the crop balance sheet, corn yield for the 2016/17 crop year is projected at 175.1 bu/acre a 7.1 bu/acre increase over the July estimate. With the increase in yield, U.S. producers are expected to produce a record 15.1 billion bushels of corn. Although demand was increased across the board, ending stocks were revised up by 328 million bushels from a month ago.
Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.

Latest USDA Supply and Demand Report Expects Bumper Crop in 2016/17

The USDA made several updates for the 2016/17 crop year in the latest World Agricultural Supply and Demand Estimates. The USDA is projecting 94.1 million acres of corn to be planted this year, and of that 86.6 million acres are expected to be harvested. Corn yield for the 2016/17 crop year is projected at 175.1 bu/acre a 7.1 bu/acre increase over the July estimate and much higher than pre-report expectations. If the acreage and yield hold true, U.S. producers are expected to produce a record 15.1 billion bushels of corn. Feed and residual use was increased by 175 million bushels, a reflection of lower prices and increased production from beef, poultry, and pork. Exports were also increased by 125 million bushels. Despite the increases in demand for corn, ending stocks were revised up by 328 million bushels from a month ago. The large U.S. crop has also driven global corn production much higher, with global production increased by nearly 18 million metric tons. Most of the increase is due to higher U.S. production, although Argentina is expecting a larger crop as well. An increase in global feed use has eaten up some of the increase in production, but ending stocks are still up more than 12 billion metric tons globally. Mississippi corn yields were also released this month. Mississippi producers are expected to average 172 bu/acre on corn this year, slightly behind last year’s 175 bu/acre benchmark.

 The 2015/16 soybean balance also saw several changes from the July WASDE report. Soybean harvested acres were left unchanged at 83.0 million acres while yields were bumped up by 2.2 bu/acre to 48.9, much higher than expected. Soybean crush was up 15 million bushels from a month ago while exports are up 30 million bushels from last month’s estimates. Beginning stocks were lowered by 95 million bushels, mostly a reflection of higher than expected exports for the old crop. Ending stocks for 2015/16 were increased 40 million bushels to 330 million bushels. Global soybean production is also 4.46 million metric tons higher than a month ago, driven almost entirely by higher U.S. production. The larger crop will now put the U.S. back on top of Brazil as the world’s largest soybean producer. While slight increases in demand have helped some, global ending stocks are still 4.1 million metric tons higher than last month. Mississippi soybean producers are expected to see slightly higher soybean yields than a year ago at 47 bu/acre compared to 46 bu/acre a year ago.

 The 2015/16 wheat crop balance sheet saw several minor changes. Acreage remained the same, but wheat yields were increased by 1.3 bu/acre to 52.6 bu/acre. Food use was increased by 5 million bushels, while feed use was increased by 30 million bushels as the crop has become more competitive with corn as an alternative feed source. Exports were increased by 25 million bushels, leaving ending stocks 5 million bushels lower than a month ago at 1.1 billion bushels. Globally, wheat production was increased by 4.94 million metric tons, driven primarily by higher production in the U.S., Canada, Australia, and the former Soviet Union. Increases in demand have more than offset the increased production, leaving global ending stocks down by 0.88 million metric tons.

 The cotton balance sheet saw several revisions this month as well. Cotton harvested acres was increased by 230,000 acres to 9.53 million acres while yields were reduced by 15 pounds per acre. Those changes left cotton production up slightly at 15.88 million bales. Domestic use and exports were unchanged from last month, leaving ending stocks up by 100,000 bales at 4.7 million bales. Global cotton production was lowered by 0.97 million bales due mostly to lower Chinese and Indian production. The decrease in production combined with lower carryover from 2015/16 left global ending stocks down 1.68 million bales. Mississippi producers are expecting improved cotton yields this year at 1,133 pounds per acre compared to 1,024 a year ago.

Crop Market Update: August 9, 2016

Corn was down last week with Greenville cash corn currently trading $0.19 lower than a week ago and $0.27 lower than a year ago at $3.41/bu on Friday. September futures contracts are $0.10 lower on the week at $3.24/bu. Mississippi producers have just started harvest with 4% of the state’s corn crop harvested, slightly behind last year’s pace and the 5-year average of 6%. Mississippi’s corn crop condition declined slightly with 62% of the state’s crop rated in good or excellent condition. Nationally, about 53% of the U.S. corn crop is in the dough state, ahead of a year ago as well as the five year average. Favorable growing conditions have the U.S. corn crop looking good with 74% of the crop rated in good or excellent condition.

Soybean markets are trading lower this week, with Greenville soybeans trading $0.18 lower at $10.15/bu on Friday. A year ago, Greenville soybeans were trading for $9.83/bu. Nearby September soybean futures are trading $0.32 lower than a week ago. Mississippi’s soybean crop development is slightly ahead of the 5-year average as well as ahead of a year ago with 86% of the crop setting pods compared to 81% a year ago and a five year average of 80%. Mississippi’s soybean crop condition declined some with 67% of the state’s crop rated in good or excellent condition. The U.S. soybean crop is ahead of schedule with 69% of the crop setting pods compared to a 5-year average of 61%. Nationally, the soybean crop looks good overall with 72% of the nation’s soybean crop rated in good or excellent condition.

September wheat futures are up $0.08 from a week ago at $4.16 while Greenville wheat prices are up $0.08 on the week at $3.81/bu on Friday. The U.S. winter wheat harvest is slightly ahead of schedule with 94% of the U.S. wheat crop harvested compared to a 5-year average of 91%. The U.S. spring wheat crop is rated 68% good or excellent condition, slightly worse than last year when the crop was rated 69% good or excellent.

Cotton prices finished the week higher with South Delta cash prices trading $2.48/cwt higher than a week ago at $76.14/cwt and $15.62/cwt higher than a year ago. Nearby cotton futures are lower with October cotton futures closing at $76.64, up $2.48/cwt from last week. Mississippi producers currently have about 85% of the state’s cotton crop setting bolls, right on pace with a year ago and the 5-year average of 86%. This week 55% of Mississippi’s cotton crop is rated in good or excellent condition while 48% of the U.S. crop is in good or excellent condition. Nationally, 70% of the cotton crop is setting bolls, slightly behind the 5-year average of 72%.

For more detail on crop futures and Mississippi local cash prices click here.

Cattle Market Notes: Week Ending August 5, 2016

Cash Cattle:

Cash traded fed cattle were higher this week. The five-area fed steer price for the week of July 28-August 5 averaged $118.94 for live sales, and $187.94 for dressed; respectively, up $0.94 and $3.83. Total volume sold was down 2,000 head from a week ago and up 44,000 head from last year.

Feeder steer cattle and calves were higher across the U.S. this week. Oklahoma City 500-550 pound steers were steady to $6.00 higher while heavier 750-800 pound steers were steady to $3.00 higher. Mississippi pasture conditions improved this week with 58% rated good or excellent, a 5% improvement from a week ago.  In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were averaging $142.50, up $7.50 from a week ago, while heavy steers were averaging $124.00, up $6.00 from last week.

[ … For Livestock Prices and Production data and trends CLICK HERE … ]

Futures:

Live cattle futures and feeder futures were higher this week. August live cattle were up $4.30 on the week and $32.15 lower than a year ago at $117.50, while December live cattle were up $3.40 from last week and down $34.23 from a year ago. Feeder cattle were higher this week with August futures up $9.65 from last Friday and down $64.18 from a year ago at $149.85 while October futures are up $6.35 on the week. Nearby corn futures are down $0.10 from a week ago at $3.23 while December futures are also down $0.09.

Beef:                                                                                           

Wholesale boxed beef prices are mixed compared to a week ago. Choice boxes averaged $198.71, down $0.08 from a week ago and $36.13 lower than a year ago. Select boxes ended the week with an average of $190.88, up $0.96 from last week. The choice-select spread narrowed from $8.87 a week ago to $7.83 this week.

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.