Winter wheat production estimate tomorrow

Market Line May 11, 2009 The USDA will issue its first surveyed estimate of U.S. winter wheat production for this year in a report tomorrow, as well as update supply and demand for the world. Wheat futures had a big rally Friday.

Louise Gartner for the Linn Group at the Chicago Board of Trade says the winter wheat production estimates from tours in Oklahoma and Kansas were bullish for the market.

Gartner: “Wheat market breaking into new highs and closing above the trading range certainly created a lot of short covering and brought in a lot of fund buying. Again, we will see how much this can continue to pull ahead. We do have a seasonal window that tends to close here fairly quickly. Markets do tend to rally in late April early May. Quite often we peek right around the crop report so this will be a very interesting price action.”

Also friendly for wheat was a Stats Canada report which showed wheat stocks lower than the trade expected.

On Friday Chicago July wheat was up 20 ¾ cents at 5-91. July corn up nine at 4-21. Portland soft white wheat and all club wheat three to seven cents higher at mostly 5-60. August new crop soft white steady to higher at 5-55 to 5-65. HRW 11.5 % protein up 19 cents at 6-63. DNS 14% protein three to eight cents higher at 8-15.

Cattle futures posted good gains Friday. The June live cattle contract’s discount to cash fed cattle last week was supportive as was the big gain in the stock market. A good volume of boxed beef moved last week too. June live cattle up 95 cents at 82-97. August feeders up 162 at 100-70. June Class III milk down 13 cents at 10-55.

I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network. Now this.