Drought in China may not be a market mover, yet

Market Line February 3, 2008 Wheat futures closed lower Monday getting early pressure from outside markets. The deadline for Pakistan’s 250-thousand metric ton U.S. white wheat tender is now February 7th. They also are working a separate 250-thousand ton optional origin tender. Louise Gartner for the Linn Group at the Chicago Board of Trade says they continue to watch drought in China’s major winter wheat areas, which even the Chinese government is talking about. Gartner: “But we do have to keep in mind it is early. The crop is dormant. They had a huge crop the last couple of years. The government has been buying wheat and corn and beans from the producers to support prices. So they have been stockpiling a great deal of wheat in China. And much of their wheat is irrigated so it is hard to say that this market is going to be sharply higher because there is drought in those regions at this point.� On Monday Chicago March wheat was down 4 ¼ cents at 5-63 ¾. March corn down 8 ½ at 3-70 ½. Portland soft white wheat any protein four to five cents lower at mostly 5-60. Maximum 10.5 percent protein 5-70. Club wheat 7-10. Maximum 10.5 percent club wheat 7-20. HRW 11.5 % protein 6-26. DNS 14% protein 7-97. No Portland barley bids. The USDA Cattle Inventory report proved bullish for cattle futures Monday. The smaller than expected cattle numbers imply smaller beef production over the next several years with fewer feeder replacements. April live cattle up 172 at 86-82. March feeders up $3 at $94. March Class III milk down 33 cents at $10. I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network. Now this.