USDA numbers bearish for grain

Market Line July 1, 2009 Larger than expected planted acres in USDA’s report Tuesday resulted in limit down corn futures and double digit losses for wheat contracts. Corn led the grains lower as USDA’s 87 million acres was nearly three million more than the average trade guess.

USDA’s spring wheat acreage number of 13.2 million also came in larger than expected. Mark Chiodo of Slipka Trading at the Minneapolis Grain Exchange was among those surprised.

Chiodo: “Apparently they found an awful lot of acres in eastern Montana because all the sources I talked to across North Dakota never got the acreage in they were expected. We will have to see how that plays out.”

Total U.S. wheat acreage this year is still forecast to be down five percent from 2008.

On Tuesday Chicago September wheat was down 17 cents at 5-40 ¾.

September corn down 30 cents at 3-54 ½. Portland soft white wheat and club wheat 10-15 cents lower at 5-56. August new crop soft white seven to 15 cents lower at 5-58 to 5-60. HRW 11.5 % protein seven to 12 cents lower at 6-15. DNS 14% protein 18-23 lower at 7-24. No Portland barley bids.

Higher cash prices and the limit down move in corn futures helped feeder contracts close sharply higher Tuesday, while the drop in corn was said to be negative for live cattle. August live cattle down 15 cents at 82-25. August feeders up 110 at 102-82. August Class III milk down 16 cents at 10-62.

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

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