South American weather still key for grains

South American weather still key for grains

Market Line December 29, 2011 Wheat futures were mostly higher Wednesday with some weakness at Minneapolis. The outside markets were not supportive to grains but Chris Robinson of Top Third Ag Marketing at the CME says South American weather was.

Robinson: “The ten to 12 day forecast came out. Again there is no rain in the forecast for those area for the next 10 to 12 days. No major rain on the horizon so that has caused prices to firm up. So, we have had a short covering rally here. Is it going to continue? It all depends on the rain in South America.”

Kazakhstan harvested a record wheat crop this year of nearly 26 million metric tons. That is more than double last year’s production.

On Wednesday Chicago March wheat up 6 ½ cents at 6-51 ¼. March corn up 9 ¼ cents at 6-42 ½. Portland soft white wheat and club wheat five to 25 cents higher at mostly 6-18. Hard red winter 11.5 percent protein up three cents at 7-53. DNS 14% protein steady to a nickel higher at mostly 9-98.

Live cattle futures were mixed on Wednesday with weakness in the nearby contracts while feeders were steady to higher. Outside markets were not friendly for cattle and profit taking was mentioned again. There was also talk of more fed cattle being on the market this week and concerns about beef prices and demand. February live cattle down a nickel at 123-15. March feeders up seven cents at 150-35. February Class III milk up six cents at 17-28.

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

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