Export number and news helps wheat

Market Line October 9, 2009 A crop production and supply and demand report will be out this morning from the USDA . Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange sums up trader expectations.

Chiodo: “The expectation is for carryout to grow across all three items, corn, wheat and beans.”

Thursday wheat futures were higher. The export sales report was better than anticipated at nearly 28 million bushels. That compares to the 15 million needed weekly to meet USDA projections. There is also the Saudi Arabian tender in the works and still unconfirmed reports of a U.S. sale to Iraq. Morocco is also reported to have okayed a purchase of U.S. soft red winter wheat. A lower dollar is seen as making the U.S. competitive again.

On Thursday Chicago December wheat was up 10 ¾ cents at 4-74.

December corn up 4 ¼ at 3-64. Portland soft white wheat steady to eight cents higher at mostly 4-53. Club wheat premium $3.25. HRW 11.5 % protein steady to a dime higher at 5-31. DNS 14% protein up a dime at 6-51.

No Portland barley bids.

Cattle futures were higher Thursday. Short covering was a feature as was buying deferred live contracts and selling forward. Higher corn helped the deferreds while it kept a lid on feeder contracts. A higher stock market was also helpful. December live cattle up 25 cents at 84-32. November feeders up 62 at 93-80. November Class III milk down eight cents at 14-31.

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

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