Trade expects increased wheat stocks

Market Line September 11, 2009 Traders will react today to USDA’s September crop production and updated supply and demand numbers. A bullish report for wheat is not expected as the expectation is for an increase in U.S. wheat carryout.

On Thursday wheat futures were higher at Chicago and Kansas City and lower at Minneapolis where harvest pressure continues. Otherwise traders were said to be evening up positions ahead of this morning’s reports.

The Australian Ag Minister is saying that because of recent rains the Aussie wheat crop should not be reduced by this year’s drought and production should be about 22 million metric tons.

On Thursday Chicago December wheat was up 2 ½ cents at 4-58 ¾.

December corn up 5 ½ at 3-15 ¼. Portland soft white wheat steady to a nickel lower at mostly 4-65. Club wheat premium $3. HRW 11.5 % protein one to four cents higher at $5. DNS 14% protein steady to three cents higher at 5-80. No Portland barley bids.

In Cattle futures, Troy Vetterkind with the Linn Group provides an analysis.

Vetterkind: “They were higher was well but cattle ran into some resistance and sold off into the close. I think we have enough priced in for a higher cash fed market this week. I would look for cattle to be a little bit lower.”

October live cattle down 32 cents at 87-22. October feeders down 45 at 99-77. October Class III milk up a dime at 12-33.

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

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