Canadian wheat estimate bearish; cattle on feed number negative
Market Line August 24, 2009 Good weather is expected to speed up the pace of the U.S. spring wheat harvest this week keeping pressure on wheat futures. On Friday contracts saw single digit losses. One reason, Stats Canada’s estimate of wheat production. Though 17 percent smaller than last year, the estimate of 23.6 million tons was higher than the trade expected. Lynn Smith with the Zaner Group sums up wheat’s problem. Smith: “The ample world supplies of wheat right now is still weighing on the market. There seems to be little demand for U.S. wheat at this point and as a result prices drifted lower.” Australia is reporting some increased dryness in its eastern wheat belt, which would fit with the effects of an El Nino that is said to be developing. On Friday Chicago December wheat was down 9 ¼ cents at 4-87 ¼. December corn up 2 ¼ at 3-26 ¼. No August Portland soft white or club wheat bids. Soft white for first half September was unchanged at 4-85 to $5. August HRW 11.5 % protein down a nickel at 5-35. DNS 14% protein for August down seven cents at 6-12. No Portland barley bids. USDA reports the cattle feedlot inventory as of August 1st was 9.6 million head, down two percent from August of 2008. Placements were up 13 percent with marketings down five percent from 2008. The inventory and placement numbers were viewed as bearish for futures today. Ahead of the report Friday, October live cattle down 22 cents at 88-60. October feeders down 57 at 100-62. October Class III milk up 20 cents at 13-45. I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network. Now this.
