Wheat futures lower; feedlot inventory up seven percent

Market Line May 23, 2011 Wheat futures were lower Friday with a higher dollar and technical factors cited. Some rainfall for the southern plains was bearish though rain now in Texas will interfere with harvest. Some good planting weather for the northern plains and Canada was seen as bearish. Traders will get an update on spring wheat planting progress after the close today.

On Friday Chicago July wheat down 5 ½ cents at 8-06 ½. July corn up 11 ¼ cents at 7-59 ½. Portland soft white wheat steady to a dime higher, mostly 8-05. Club wheat also 8-05. New crop August white wheat steady to a nickel higher at $8 to 8-15. Hard red winter 11.5 percent protein down 7 to 12 cents at 9-78. DNS 14% protein down six cents at 12-53.

Cattle futures were mostly lower Friday heading into USDA’s Cattle on Feed report which pegged the inventory May 1st up seven percent from a year ago. USDA analyst Shayle Shagum says a surprise was the placement number, up ten percent from a year ago and the highest April placements in years. Why?

Shagum: “Very dry conditions in the southern plains and probably down into Mexico. We have seen some relatively high number of imported Mexican feeder cattle and really there is no grass in the southern plains to put them on so a lot of those animals are probably moving into feedlots”

In the futures Friday June live cattle up 12 cents at 104-97. August feeders down 90 at 125-75. June Class III milk up 35 cents at 18-01, a new high.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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